Ames National (ATLO) AI Stock Analysis

• Market Cap: $166.19M
• Dividend Yield: 4.67%
• Average Volume (3M): 16.45K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.67
• Revenue Growth: 6.86%
• EPS Growth: 44.54%
• Country: US
• Employees: 258
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.51
• Shares Outstanding: 8,915,557
• 10 Day Avg. Volume: 13,947
• 30 Day Avg. Volume: 16,447
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.50
• Price Target Upside: -0.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $19.50 ▲(4.61%Upside)

Ames National's overall score reflects solid financial performance and an attractive valuation with a strong dividend yield. The technical analysis suggests stable price trends with slight positive momentum. The company's prudent financial management and solid balance sheet position it as a stable option within the regional banking sector.

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 Corporation generates revenue primarily through the interest income received from its lending activities. This includes interest from various loan products such as commercial, agricultural, and residential real estate loans. Additionally, the company earns income from service charges on deposit accounts, fees related to wealth management and fiduciary activities, and gains from the sale of loans. The corporation's earnings are also influenced by its investment securities portfolio, which provides interest and dividend income. Significant factors contributing to its earnings include interest rate fluctuations, loan demand, and economic conditions in its primary market of Iowa.

Ames National Financial Statement Overview

Summary

Ames National demonstrates solid financial health with strong revenue and cash flow growth. While profitability margins are generally strong, there is a slight downward trend in EBIT and EBITDA margins which warrants monitoring. The balance sheet reflects a solid equity position and prudent leverage management, making it a stable entity within the regional banking sector.

Income Statement

Ames National has shown strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 1.49% from the previous year, indicating a positive growth trajectory. The net profit margin improved to 12.10% in the TTM, up from 11.05% in the prior year, showcasing enhanced profitability. Gross profit margin remains robust at 59.47% in the TTM. However, EBIT and EBITDA margins have slightly decreased compared to historical performance, which could be an area of concern if not addressed.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 8.38% in the TTM, although this is a slight decrease from the previous year due to increased total assets. The debt-to-equity ratio stands at 0.45, indicating prudent leverage management in line with industry norms. Return on Equity (ROE) is strong at 6.21%, driven by consistent net income, though slightly down from the previous year due to increased equity base.

Cash Flow

Cash flow management is a strong point for Ames National, with healthy free cash flow growth of 40.14% in the TTM. The operating cash flow to net income ratio is 1.77, reflecting efficient conversion of income into cash. Free cash flow to net income ratio at 1.73 further underscores robust cash generation capabilities, supporting potential future investments or dividends.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Ames National Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLO, the sentiment is Positive. The current price of 18.64 is above the 20-day moving average (MA) of 18.26, above the 50-day MA of 17.82, and above the 200-day MA of 17.34, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 59.63 is Neutral, neither overbought nor oversold. The STOCH value of 66.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATLO.

Ames National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRBK	78 Outperform	$167.81M	10.45	9.64%	3.36%	12.41%	34.20%
BVFL	77 Outperform	$170.04M	15.60	5.31%	―	5.08%	-12.65%
FRAF	72 Outperform	$187.43M	12.88	9.88%	3.07%	15.18%	―
LARK	69 Neutral	$150.94M	9.31	11.80%	3.22%	14.69%	43.66%
ATLO	68 Neutral	$166.19M	12.14	7.60%	4.67%	6.86%	44.54%
Sector *	68 Neutral	¥747.59B	10.97	7.55%	3.22%	7.82%	14.69%
FSFG	65 Neutral	$179.90M	8.39	12.26%	2.40%	8.14%	134.03%