Ames National (ATLO) AI Stock Analysis

• Market Cap: $240.18M
• Dividend Yield: 3.49%
• Average Volume (3M): 22.55K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.53
• 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: 8,892,167
• 10 Day Avg. Volume: 38,730
• 30 Day Avg. Volume: 22,548
• 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: 2.91
• Enterprise Value/Gross Profit: 4.56
• Enterprise Value/Ebitda: 12.98
• 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: $30.00 ▲(37.24% Upside)
• Action: Reiterated Date: 01/25/26
• Date: Action: Reiterated 01/25/26

ATLO scores solidly on improving financial performance (revenue rebound, better margins, and de-risked leverage) and a positive technical trend. Valuation and dividend yield are supportive, while near-term momentum appears somewhat stretched (RSI/Stoch elevated), tempering the overall rating.

Positive Factors

De-risked balance sheet / lower leverage

Material reduction in leverage meaningfully lowers solvency and funding risk, increasing flexibility to absorb credit losses, support lending or dividends, and pursue strategic initiatives. A stronger capital base supports durable operations and resilience through credit cycles over the next several quarters.

Revenue rebound driven by net interest income

Sustained NII improvement reflects successful asset repricing and funding mix management, which can provide a more durable earnings base if rate and funding advantages persist. Stronger margins and diversified loan/investment yields support stable core revenue over the medium term.

Return of cash to shareholders (dividend)

A recurring cash dividend signals management confidence in capital and cash generation, anchoring shareholder returns and indicating sufficient capital buffers. For a regional bank, a sustainable dividend policy can support investor trust and discipline in capital allocation decisions.

Negative Factors

Below‑peak profitability / modest ROE

An ROE around mid-single digits to low double-digits constrains long-term capital accumulation and makes it harder to outpace peers or reinvest organically. Persistently below-peak returns could limit growth capacity, dividend sustainability, and competitiveness in attracting capital.

Volatile cash flow and weak cash conversion consistency

Irregular free cash flow and low coverage reduce predictability for dividends, loan growth, and capital investments. Volatility implies earnings may not reliably convert to spendable cash through cycles, increasing risk to investment plans and shareholder distributions over 2–6 months.

Earnings sensitivity to rate and credit cycles

If core profitability depends heavily on net interest margin swings and credit‑related items, earnings may revert quickly when rates normalise or credit conditions shift. This structural sensitivity raises uncertainty around sustaining recent profit gains across varying macro environments.

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

Income statement strength is supported by sharp TTM revenue rebound and improved margins versus 2024, while the balance sheet shows meaningfully reduced leverage (debt-to-equity down to ~0.32 TTM). Offsetting this, profitability/ROE remain below 2020–2022 peak levels and cash flow has been positive but choppy, with weaker consistency in FCF growth and cash conversion.

Income Statement

TTM (Trailing-Twelve-Months) results show a sharp revenue rebound (+133% growth) with profitability also improving versus 2024 (net margin ~16.7% TTM vs ~11.1% in 2024; EBIT margin ~20.7% TTM vs ~13.2%). However, profitability remains well below the 2020–2022 peak period when margins were materially higher, indicating earnings power is more rate/credit-cycle sensitive than it appeared earlier in the period.

Balance Sheet

Leverage has improved meaningfully, with debt-to-equity dropping from ~1.0 (2023) to ~0.57 (2024) and ~0.32 in TTM (Trailing-Twelve-Months), reducing balance-sheet risk. Equity is solid at ~$201M TTM and assets are stable around ~$2.11B, but returns on equity are still moderate (~8.5% TTM) relative to stronger historical levels (notably 2022).

Cash Flow

Cash generation is steady: operating cash flow and free cash flow are positive in TTM (about $19.8M and $19.3M), and free cash flow closely tracks net income (~0.98x), suggesting reported earnings are broadly supported by cash. The main weakness is volatility in free cash flow growth (negative in TTM and several recent years) and a low operating cash flow coverage figure, pointing to less consistent cash conversion through the cycle.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.06M	92.44M	83.52M	71.24M	71.02M	73.56M
Gross Profit	61.33M	54.22M	53.05M	63.80M	67.29M	59.78M
EBITDA	21.56M	13.93M	14.64M	27.16M	32.70M	25.50M
Net Income	16.03M	10.22M	10.82M	19.29M	23.91M	18.85M
Balance Sheet
Total Assets	2.11B	2.13B	2.16B	2.13B	2.14B	1.98B
Cash, Cash Equivalents and Short-Term Investments	315.91M	302.18M	800.39M	828.99M	937.05M	788.52M
Total Debt	64.13M	99.36M	164.58M	79.80M	42.85M	40.29M
Total Liabilities	1.91B	1.96B	1.99B	1.99B	1.93B	1.77B
Stockholders Equity	200.59M	174.71M	165.79M	149.10M	207.78M	209.49M
Cash Flow
Free Cash Flow	19.34M	14.00M	14.31M	18.37M	28.60M	28.46M
Operating Cash Flow	19.82M	14.30M	19.21M	21.23M	30.47M	29.71M
Investing Cash Flow	68.80M	71.98M	19.06M	-127.38M	-268.57M	-184.26M
Financing Cash Flow	-39.43M	-40.15M	-11.05M	44.91M	154.13M	205.83M

Ames National Technical Analysis

• Technical Analysis Sentiment: Positive
• 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 Positive. The current price of 21.86 is below the 20-day moving average (MA) of 27.43, below the 50-day MA of 25.10, and above the 200-day MA of 20.70, indicating a bullish trend. The MACD of 0.79 indicates Positive momentum. The RSI at 67.61 is Neutral, neither overbought nor oversold. The STOCH value of 49.73 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
PEBK	76 Outperform	$208.61M	10.56	11.73%	2.58%	4.52%	3.47%
OVBC	75 Outperform	$200.83M	12.87	8.95%	2.27%	10.35%	22.05%
NKSH	72 Outperform	$239.04M	15.10	7.51%	4.47%	9.69%	41.26%
ATLO	71 Outperform	$240.18M	12.63	8.35%	3.49%	5.89%	82.82%
MRBK	71 Outperform	$223.90M	10.29	11.39%	2.87%	9.77%	76.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CBFV	66 Neutral	$174.43M	37.84	1.78%	2.90%	-1.39%	-88.66%

Ames National Corporate Events

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.

Ames National Declares Cash Dividend for Shareholders

On November 12, 2025, Ames National Corporation declared a cash dividend of $0.20 per common share, payable on December 15, 2025, to shareholders of record as of December 1, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and may impact its financial positioning and stakeholder interests.

The most recent analyst rating on (ATLO) stock is a Buy with a $22.50 price target. To see the full list of analyst forecasts on Ames National stock, see the ATLO Stock Forecast page.