Ames National (ATLO) AI Stock Analysis

• Market Cap: $189.18M
• Dividend Yield: 3.77%
• Average Volume (3M): 20.22K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.61
• Revenue Growth: 5.89%
• EPS Growth: 82.82%
• Country: US
• Employees: 258
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.51
• Shares Outstanding: 8,892,167
• 10 Day Avg. Volume: 17,376
• 30 Day Avg. Volume: 20,223
• PEG Ratio: -2.89
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 10.55
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 3.78
• Enterprise Value/Ebitda: 11.97
• 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: $22.50 ▲(10.95% Upside)

Ames National's strong financial performance, particularly in revenue growth and cash flow generation, is a significant positive factor. The stock's reasonable valuation and attractive dividend yield further enhance its appeal. However, technical indicators suggest potential short-term weakness, which slightly tempers the overall score.

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 generates revenue primarily through interest income from loans and fees associated with banking services. Key revenue streams include interest earned on various loan products such as mortgages, auto loans, and business loans, which contribute significantly to the company's overall earnings. Additionally, the bank earns non-interest income from service charges on deposit accounts, wealth management fees, and other financial services. The company benefits from strong customer loyalty and a robust local economy, which enhances its lending capacity. Strategic partnerships with local businesses and community organizations further bolster its earnings by fostering customer engagement and expanding its service offerings.

Ames National Financial Statement Overview

Summary

Ames National demonstrates strong revenue growth and improved profitability, with effective leverage management and robust cash flow generation. However, there are concerns regarding operational efficiency and asset base stability.

Income Statement

Ames National shows a solid revenue growth rate of 3.6% in the TTM period, indicating a positive trajectory. The gross profit margin remains strong at 61.7%, and the net profit margin has improved to 14.4%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while stable, are lower than previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved significantly to 0.37 in the TTM period, indicating better leverage management. Return on equity is at 7.5%, showing moderate profitability. The equity ratio remains stable, reflecting a balanced capital structure. However, the overall asset base has slightly decreased, which could be a concern if it continues.

Cash Flow

Free cash flow growth is strong at 54% in the TTM period, indicating robust cash generation. The operating cash flow to net income ratio is low, suggesting potential issues in converting income to cash. The free cash flow to net income ratio is healthy at 97.8%, showing efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.79M	92.44M	83.52M	71.24M	71.02M	73.56M
Gross Profit	58.50M	54.22M	53.05M	63.80M	67.29M	59.78M
EBITDA	18.48M	13.93M	14.64M	27.16M	32.70M	25.50M
Net Income	13.68M	10.22M	10.82M	19.29M	23.91M	18.85M
Balance Sheet
Total Assets	2.09B	2.13B	2.16B	2.13B	2.14B	1.98B
Cash, Cash Equivalents and Short-Term Investments	746.83M	302.18M	800.39M	828.99M	937.05M	788.52M
Total Debt	70.71M	99.36M	164.58M	79.80M	42.85M	40.29M
Total Liabilities	1.90B	1.96B	1.99B	1.99B	1.93B	1.77B
Stockholders Equity	193.03M	174.71M	165.79M	149.10M	207.78M	209.49M
Cash Flow
Free Cash Flow	19.73M	14.00M	14.31M	18.37M	28.60M	28.46M
Operating Cash Flow	20.17M	14.30M	19.21M	21.23M	30.47M	29.71M
Investing Cash Flow	78.71M	71.98M	19.06M	-127.38M	-268.57M	-184.26M
Financing Cash Flow	-67.11M	-40.15M	-11.05M	44.91M	154.13M	205.83M

Ames National Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.28
• 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 20.28 is below the 20-day moving average (MA) of 20.82, below the 50-day MA of 20.50, and above the 200-day MA of 18.42, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 60.56 is Neutral, neither overbought nor oversold. The STOCH value of 69.14 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
ATLO	71 Outperform	$189.18M	11.83	8.35%	3.77%	5.89%	82.82%
PEBK	71 Outperform	$161.22M	9.64	11.73%	3.18%	4.52%	3.47%
OVBC	68 Neutral	$167.38M	11.82	8.95%	2.56%	10.35%	22.05%
MRBK	68 Neutral	$169.42M	8.31	11.39%	3.39%	9.77%	76.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NKSH	64 Neutral	$190.66M	14.66	7.51%	5.04%	9.69%	41.26%
CBFV	61 Neutral	$159.09M	79.16	1.78%	3.01%	-1.39%	-88.66%

Ames National Corporate Events

Ames National Announces New Stock Repurchase Program

On August 13, 2025, Ames National Corporation announced a new stock repurchase program set to begin on August 14, 2025, allowing the company to buy back up to 200,000 shares, approximately 2.2% of its outstanding shares, by November 17, 2026. This initiative, conducted under SEC Rule 10b-18, aims to optimize the company’s liquidity and market conditions. Additionally, the company declared a cash dividend of $0.20 per share, payable on September 15, 2025, to shareholders recorded by September 1, 2025, reflecting its commitment to returning value to its investors.