Ames National (ATLO) AI Stock Analysis

• Market Cap: $180.47M
• Dividend Yield: 3.94%
• Average Volume (3M): 11.25K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.67
• Revenue Growth: 6.86%
• EPS Growth: 44.24%
• Country: US
• Employees: 258
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.51
• Shares Outstanding: 8,898,689
• 10 Day Avg. Volume: 11,408
• 30 Day Avg. Volume: 11,251
• 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: 1.14
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 3.51
• Enterprise Value/Ebitda: 11.34
• 1Y Price Target: $23.00
• Price Target Upside: 13.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $23.00 ▲(13.41% Upside)

Ames National's overall stock score is driven by strong technical indicators and positive corporate events, such as the stock repurchase program and dividend declaration. While financial performance is solid, there are areas for improvement in operational efficiency and asset growth. The valuation is attractive, balancing growth potential with income.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory and expanding market presence, which supports long-term business sustainability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and shareholder returns.

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to navigate economic fluctuations.

Negative Factors

Operational Efficiency

Pressure on operational efficiency could impact profitability, necessitating focus on cost management and process improvements.

Asset Base Stability

A declining asset base may limit growth potential and affect the company's ability to leverage assets for revenue generation.

Cash Conversion

Challenges in converting income to cash could strain liquidity, affecting the company's ability to fund operations and growth initiatives.

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 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 company maintains a balanced leverage profile with a focus on sustainable growth.

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	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	18.08M	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: Negative

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 above the 20-day moving average (MA) of 19.56, above the 50-day MA of 18.73, and above the 200-day MA of 17.50, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 68.39 is Neutral, neither overbought nor oversold. The STOCH value of 88.33 is Negative, 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	77 Outperform	$180.47M	13.24	7.60%	3.94%	6.86%	44.24%
LARK	77 Outperform	$154.41M	9.50	11.80%	3.15%	14.58%	43.66%
MRBK	75 Outperform	$176.64M	10.99	9.64%	3.21%	12.41%	34.20%
FRAF	72 Outperform	$212.33M	14.52	9.88%	2.74%	15.18%	5.13%
FSFG	71 Outperform	$190.25M	8.79	12.26%	2.27%	7.93%	134.03%
BVFL	71 Outperform	$164.90M	16.04	5.31%	―	5.08%	-12.60%
Sector *	68 Neutral	$17.85B	11.54	9.95%	3.76%	9.70%	1.08%

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.