Ames National (ATLO) AI Stock Analysis

• Market Cap: $232.77M
• Dividend Yield: 3.49%
• Average Volume (3M): 22.55K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.54
• Revenue Growth: 5.89%
• EPS Growth: 82.82%
• Country: US
• Employees: 258
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 8,857,220
• 10 Day Avg. Volume: 38,730
• 30 Day Avg. Volume: 22,548
• PEG Ratio: 0.12
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 9.90
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 4.22
• Enterprise Value/Ebitda: 11.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $29.00 ▲(32.66% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven primarily by improving financial performance in 2025 (profitability and leverage trends), supported by attractive valuation (low P/E and a solid dividend). Offsetting factors include only moderate technical momentum and lingering uncertainty from historically volatile cash-flow signals.

Positive Factors

Improved leverage and capital

Material de‑leveraging and a larger equity base materially improve financial flexibility and reduce leverage-driven risk. Lower debt and higher equity support regulatory ratios, reduce interest expense sensitivity, and create a durable capital buffer to fund lending, absorb losses, and sustain growth.

Earnings recovery driven by NII

A clear rebound in net income and margin reflects improving core earnings driven by higher net interest income and improved deposit costs. Sustained profitability strengthens internal capital generation, enables reinvestment in the franchise, and supports longer‑term lending and dividend capacity.

Consistent capital returns and governance steps

Declaring a cash dividend and advancing board nominations signal disciplined capital allocation and management confidence in recurring earnings. For a community bank, predictable dividends and clear governance actions support investor trust and indicate a durable commitment to returning excess capital.

Negative Factors

Earnings below prior peaks

Although profitability has rebounded, margins and ROE remain meaningfully below 2020–2022 highs. This suggests earnings power is still recovering and is exposed to cyclicality, which can limit long‑term return potential and constrain capital accumulation in weaker rate or credit environments.

Volatile cash generation

Historic swings in operating and free cash flow and inconsistent coverage metrics reduce confidence in cash quality. Volatility complicates capital planning and dividend visibility, and can impair the bank's ability to consistently fund loan growth or absorb credit stress without external actions.

Regional and sector concentration risk

A concentrated footprint with sizable agricultural exposure increases vulnerability to regional economic cycles and commodity price swings. Geographic and sector concentration can amplify credit losses or deposit volatility during localized downturns, limiting diversification benefits over time.

Ames National Business Overview & Revenue Model

Company Description

Ames National Corporation operates as a multi-bank holding company that provides banking products and services primarily in Boone, Clarke, Hancock, Marshall, Polk, Story, and Union counties in central, north-central, and south-central Iowa. The company accepts a range of deposits, including checking and savings accounts; and time deposits, such as money market accounts and certificates of deposit. It also provides loans, such as short-term and medium-term commercial and agricultural real estate, residential real estate loans, equipment, vehicle, and home improvement loans; personal loans and lines of credit; agricultural and business operating loans and lines of credit; and originates mortgage loans for sale into the secondary market. In addition, the company offers cash management, merchant credit card processing, safe deposit box, wire transfer, direct deposit of payroll and social security check, and automated/video teller machine access services; and automatic drafts for various accounts, as well as wealth management services. Further, it provides farm management, investment, and custodial services for individuals, businesses, and non-profit organizations; and online, mobile, and private banking services. Ames National Corporation was founded in 1903 and is based in Ames, Iowa.

How the Company Makes Money

Ames National primarily makes money through its banking subsidiary by earning net interest income and generating noninterest income. Net interest income is the spread between (1) interest earned on loans and other interest-earning assets (e.g., commercial, agricultural, real estate, and consumer loans; and interest-bearing securities) and (2) interest paid on funding sources (e.g., interest-bearing checking, savings, money market accounts, time deposits, and borrowings). Noninterest income typically comes from bank fees and service charges (such as deposit account service charges and other customer banking fees) and other operating income generated in the normal course of community banking. The company’s earnings are also influenced by credit quality (loan losses), loan and deposit growth, the level and shape of interest rates (which affects asset yields and deposit costs), and operating efficiency (noninterest expense). Significant partnerships or specific counterparty arrangements contributing to earnings are null.

Ames National Financial Statement Overview

Summary

Financials show a clear 2025 recovery (higher revenue and net income, improved leverage and ROE), but earnings power remains below the stronger 2020–2022 period and cash flow has been volatile with inconsistent coverage signals, tempering confidence.

Income Statement

Revenue has grown over the last two years (2024 to 2025), and profitability rebounded sharply in 2025 with net income rising to ~$19.0M from ~$10.2M in 2024, lifting the net margin to ~19% (from ~11%). However, profitability remains below the stronger 2020–2022 run-rate, when net margins were consistently higher (~26%–34%), indicating some cyclicality and less stable earnings power versus prior peaks.

Balance Sheet

Leverage improved meaningfully, with debt-to-equity declining from ~0.99 (2023) to ~0.29 (2025) as total debt fell to ~$60.2M while equity increased to ~$207.9M. Return on equity also improved to ~9.2% in 2025 (vs ~5.8% in 2024), suggesting better capital productivity. The main watch item is that returns are still below earlier highs (e.g., ~12.9% in 2022), implying profitability is recovering but not fully normalized.

Cash Flow

Cash generation improved in 2025 with operating cash flow and free cash flow both at ~$21.3M and strong free cash flow growth (+~10%). That said, free cash flow has been volatile over time (declines in 2022–2024), and the provided cash-flow coverage metrics are inconsistent (shown as 0.0 in 2025), which reduces confidence in cash-flow quality signals despite the headline rebound.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	98.26M	92.44M	83.52M	71.24M	71.02M
Gross Profit	65.14M	54.22M	53.05M	63.80M	67.29M
EBITDA	24.67M	13.93M	14.64M	27.16M	32.70M
Net Income	19.03M	10.22M	10.82M	19.29M	23.91M
Balance Sheet
Total Assets	2.13B	2.13B	2.16B	2.13B	2.14B
Cash, Cash Equivalents and Short-Term Investments	676.43M	302.18M	800.39M	828.99M	937.05M
Total Debt	60.15M	99.36M	164.58M	79.80M	42.85M
Total Liabilities	1.93B	1.96B	1.99B	1.99B	1.93B
Stockholders Equity	207.89M	174.71M	165.79M	149.10M	207.78M
Cash Flow
Free Cash Flow	20.70M	14.00M	14.31M	18.37M	28.60M
Operating Cash Flow	21.34M	14.30M	19.21M	21.23M	30.47M
Investing Cash Flow	44.21M	71.98M	19.06M	-127.38M	-268.57M
Financing Cash Flow	-40.02M	-40.15M	-11.05M	44.91M	154.13M

Ames National Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLO, the sentiment is Neutral. The current price of 21.86 is below the 20-day moving average (MA) of 27.01, below the 50-day MA of 25.95, and above the 200-day MA of 21.21, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 48.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATLO.

Ames National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEBK	74 Outperform	$203.39M	11.31	13.46%	2.58%	4.52%	3.47%
NKSH	72 Outperform	$232.55M	9.07	9.04%	4.47%	9.69%	41.26%
ATLO	71 Outperform	$232.77M	7.86	9.70%	3.49%	5.89%	82.82%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CBFV	64 Neutral	$171.41M	9.22	3.23%	2.90%	-1.39%	-88.66%
OVBC	63 Neutral	$191.03M	12.07	8.95%	2.27%	10.35%	22.05%
MRBK	58 Neutral	$219.45M	7.06	11.39%	2.87%	9.77%	76.75%

Ames National Corporate Events

Ames National Declares Dividend and Sets Board Nominees

Ames National furnished its 2025 Summary Annual Report to investors, clarifying that the material is being provided for informational purposes and will not be treated as filed under the Securities Exchange Act or automatically incorporated into future securities filings. This approach underscores the company’s effort to enhance disclosure while managing the legal status of the distributed information.

On February 11, 2026, the company announced a new cash dividend and identified nominees to stand for election to its board of directors at the April 29, 2026 annual shareholders meeting, as detailed in a February 13, 2026 press release. The moves signal continued capital returns to shareholders and outline upcoming governance decisions that investors will weigh at the annual meeting.

The most recent analyst rating on (ATLO) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Ames National stock, see the ATLO Stock Forecast page.

Ames National posts sharply higher fourth-quarter and annual earnings

On January 23, 2026, Ames National Corporation reported that net income for the fourth quarter of 2025 nearly doubled year-on-year to $6.5 million, or $0.73 per share, from $3.5 million, or $0.39 per share, in the same period of 2024. For the full year ended December 31, 2025, net income rose to $19.0 million, or $2.14 per share, from $10.2 million, or $1.14 per share, in 2024, driven primarily by a 23.8% increase in net interest income as higher loan and investment yields, lower deposit and borrowing costs, and improved net interest margin boosted profitability. Fourth-quarter results were further supported by a higher credit loss benefit, stronger noninterest income from wealth management and the sale of foreclosed real estate, and a marked improvement in efficiency ratio to 59.22%, while balance sheet metrics showed stable assets, modest deposit growth, stronger capital and an increased capital ratio, signaling improved operating performance and financial strength for shareholders.

The most recent analyst rating on (ATLO) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Ames National stock, see the ATLO Stock Forecast page.