National Bankshares (NKSH) AI Stock Analysis

• Market Cap: $165.38M
• Dividend Yield: 5.99%
• Average Volume (3M): 8.71K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.83
• Revenue Growth: 16.02%
• EPS Growth: -54.07%
• Country: US
• Employees: 245
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 1.22
• Shares Outstanding: 6,358,410
• 10 Day Avg. Volume: 10,410
• 30 Day Avg. Volume: 8,710
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.96
• Price to Cash Flow (P/CF): 13.90
• P/FCF Ratio: 4.00
• 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: $38.00
• Price Target Upside: 50.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

National Bankshares presents a mixed picture. The company benefits from a strong balance sheet with minimal debt and increasing equity. However, significant challenges exist with declining revenues, profitability, and cash flows. Technical analysis indicates bearish trends, while valuation concerns are somewhat mitigated by a generous dividend yield. Overall, the stock's score reflects the need for improvement in operational efficiency and financial performance to bolster investor confidence.

National Bankshares Business Overview & Revenue Model

Company Description

National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking products and services to individuals, businesses, non-profits, and local governments. The company accepts interest-bearing and non-interest bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit, health savings accounts, and individual retirement accounts. Its loan products include commercial and agricultural, commercial real estate, residential real estate, home equity, and various consumer loan products, as well as loans for the construction of commercial and residential properties. The company also provides business and consumer debit and credit cards; letters of credit, night depository services, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services; non-deposit investment and insurance products; and telephone, mobile, and Internet banking services. It operates 23 branch offices, a loan production office, and 22 automated teller machines in Southwest Virginia. National Bankshares, Inc. was founded in 1891 and is headquartered in Blacksburg, Virginia.

How the Company Makes Money

National Bankshares generates revenue primarily through interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The company offers a variety of loan products, including commercial loans, residential mortgages, and consumer loans, which are key contributors to its interest income. Additionally, the bank earns non-interest income from service charges on deposit accounts, fees from loan origination, and other financial services. National Bankshares also benefits from strategic partnerships and investments in securities, which provide additional income streams and help diversify its revenue base.

National Bankshares Financial Statement Overview

Summary

National Bankshares shows a robust balance sheet with minimal debt and increasing equity, providing a solid foundation. However, declining revenues and profitability, coupled with zero operating and free cash flows in the latest period, raise concerns about operational efficiency and growth prospects. The company needs to address cash flow challenges to maintain financial health and support future expansion.

Income Statement

The company has seen a decline in total revenue from $59.43M in 2022 to $44.13M in 2024, indicating a negative revenue growth trend. Gross profit margins have been relatively stable, maintaining 100% due to the nature of the banking industry. However, the net profit margin decreased from 43.64% in 2023 to 17.27% in 2024, reflecting reduced profitability. EBIT margins have also declined from 39% in 2023 to 39.90% in 2024, highlighting pressure on operating income.

Balance Sheet

The company's debt-to-equity ratio is negligible, indicating a strong capital structure with minimal reliance on debt. Stockholders' equity has been steadily increasing, showcasing financial stability. The equity ratio improved from 8.49% in 2023 to 8.63% in 2024, indicating a stable balance sheet position with a strong equity base relative to total assets.

Cash Flow

The cash flow situation reveals challenges, with operating and free cash flows dropping to zero in 2024 from $15.52M and $14.03M in 2023, respectively. This poses a risk to liquidity and operational flexibility, as the company might struggle to fund operations and growth without tapping into financing or cash reserves.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
44.13M	47.90M	59.43M	50.31M	46.12M
	Gross Profit
44.13M	47.90M	56.39M	46.76M	42.28M
	EBIT
17.60M	18.68M	34.85M	24.63M	19.15M
	EBITDA
0.00	19.43M	32.37M	25.27M	19.86M
	Net Income Common Stockholders
7.62M	15.69M	25.93M	20.38M	16.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.86M	86.60M	728.28M	824.87M	680.61M
	Total Assets
1.81B	1.66B	1.68B	1.70B	1.52B
	Total Debt
0.00	1.13M	1.44M	1.56M	2.02M
	Net Debt
-13.86M	-86.60M	-69.98M	-137.23M	-131.86M
	Total Liabilities
1.66B	1.51B	1.55B	48.00K	56.00K
	Stockholders Equity
156.41M	140.52M	122.69M	191.75M	200.61M
Cash Flow		Free Cash Flow
0.00	14.03M	28.24M	22.56M	11.97M
	Operating Cash Flow
0.00	15.52M	29.50M	22.88M	13.79M
	Investing Cash Flow
0.00	53.19M	-129.71M	-202.54M	-177.60M
	Financing Cash Flow
0.00	-53.54M	32.85M	175.28M	166.67M

National Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKSH, the sentiment is Negative. The current price of 25.22 is below the 20-day moving average (MA) of 27.01, below the 50-day MA of 27.91, and below the 200-day MA of 28.86, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 36.57 is Neutral, neither overbought nor oversold. The STOCH value of 20.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NKSH.

National Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPOF	73 Outperform	$152.87M	15.95	8.61%	1.52%	6.90%	21.84%
UVSP	68 Neutral	$833.22M	11.12	8.80%	3.18%	11.77%	7.54%
CCNE	67 Neutral	$468.70M	9.36	9.17%	3.20%	11.48%	-6.49%
BWFG	64 Neutral	$225.44M	23.16	3.38%	2.81%	1.34%	-74.99%
Sector *	63 Neutral	$14.39B	9.81	8.95%	4.37%	16.38%	-11.64%
NKSH	59 Neutral	$165.38M	21.03	5.13%	5.99%	16.02%	-54.07%
FVCB	55 Neutral	$183.07M	12.18	6.66%	―	22.60%	284.38%

National Bankshares Corporate Events

National Bankshares Announces CEO Transition in 2025

On March 31, 2025, National Bankshares, Inc. announced the retirement of CEO F. Brad Denardo, effective June 30, 2025. Denardo, who has been with the company since 1983 and CEO since 2017, will remain as Chairman of the Board and serve as a consultant for a year. Lara E. Ramsey, currently the President of the company, will succeed Denardo as CEO and President, effective July 1, 2025. Ramsey, who joined the company in 1996, has held various leadership roles and is expected to continue the company’s tradition of community banking excellence.