National Bankshares (NKSH) AI Stock Analysis

• Market Cap: $187.92M
• Dividend Yield: 4.94%
• Average Volume (3M): 10.28K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.80
• Revenue Growth: 9.69%
• EPS Growth: 41.26%
• Country: US
• Employees: 245
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 6,366,001
• 10 Day Avg. Volume: 13,549
• 30 Day Avg. Volume: 10,278
• PEG Ratio: -0.43
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 28.61
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 3.70
• Enterprise Value/Gross Profit: 6.04
• Enterprise Value/Ebitda: 18.98
• 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: 64 Neutral
• Price Target: $31.00 ▲(1.51% Upside)

The overall stock score is primarily influenced by the company's strong balance sheet and attractive dividend yield, which provide a solid foundation and income potential. However, declining revenues, profitability, and cash flow challenges pose significant risks. The technical analysis suggests a lack of strong momentum, further tempering the stock's outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal debt enhances financial stability and provides flexibility for future investments and growth.

Increasing Equity

Rising equity levels indicate a solid financial foundation, supporting long-term sustainability and potential for expansion.

Revenue Diversification

Diversified revenue streams reduce reliance on interest income, enhancing resilience against interest rate fluctuations and economic cycles.

Negative Factors

Declining Revenue

A downward revenue trend can hinder growth prospects and limit the company's ability to invest in new opportunities or technologies.

Profitability Decline

Reduced profitability pressures operational efficiency and may impact the company's ability to sustain dividends or reinvest in the business.

Cash Flow Challenges

Zero cash flow constrains liquidity, limiting the company's ability to fund operations and growth without external financing.

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 through multiple streams, primarily from interest income earned on loans and investments. The bank extends loans to consumers and businesses, which are repaid with interest, contributing significantly to the company's earnings. Additionally, the bank earns non-interest income from fees associated with various services, including account maintenance, ATM transactions, and wealth management services. Significant partnerships with local businesses and community organizations also enhance customer acquisition and retention, further bolstering the bank's revenue. The overall financial performance is supported by prudent risk management and a focus on customer service, which helps maintain a stable deposit base and loan portfolio.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.13M	79.08M	68.19M	62.51M	53.41M	51.95M
Gross Profit	38.08M	44.13M	47.90M	58.72M	50.71M	44.12M
EBITDA	12.11M	10.26M	19.43M	32.37M	25.27M	19.86M
Net Income	8.60M	7.62M	15.69M	25.93M	20.38M	16.08M
Balance Sheet
Total Assets	1.80B	1.81B	1.66B	1.68B	1.70B	1.52B
Cash, Cash Equivalents and Short-Term Investments	639.67M	141.50M	705.20M	728.28M	824.87M	680.61M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.62B	1.66B	1.51B	1.55B	1.51B	1.32B
Stockholders Equity	179.22M	156.41M	140.52M	122.69M	191.75M	200.61M
Cash Flow
Free Cash Flow	15.21M	6.18M	14.03M	28.24M	22.56M	11.97M
Operating Cash Flow	16.17M	9.44M	15.52M	29.50M	22.88M	13.79M
Investing Cash Flow	-22.84M	15.79M	53.19M	-129.71M	-193.25M	-177.60M
Financing Cash Flow	-869.00K	-3.71M	-53.54M	32.85M	175.28M	166.67M

National Bankshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.54
• 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 NKSH, the sentiment is Positive. The current price of 30.54 is above the 20-day moving average (MA) of 29.07, above the 50-day MA of 28.59, and above the 200-day MA of 27.11, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 54.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NKSH.

National Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATLO	71 Outperform	$190.83M	11.94	8.35%	3.70%	5.89%	82.82%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EFSI	67 Neutral	$191.29M	15.91	6.63%	3.24%	-1.45%	-31.32%
FRAF	65 Neutral	$234.84M	14.97	9.91%	2.48%	12.06%	10.38%
NKSH	64 Neutral	$187.92M	14.42	7.51%	4.94%	9.69%	41.26%
BLFY	60 Neutral	$173.68M	-17.73	-2.82%	―	9.02%	17.85%
INBK	48 Neutral	$170.29M	―	-8.99%	1.22%	2.49%	-248.43%

National Bankshares Corporate Events

National Bankshares Reports Strong Q3 2025 Earnings

National Bankshares, Inc., headquartered in Blacksburg, Virginia, operates as the parent company of The National Bank of Blacksburg and National Bankshares Financial Services, Inc., providing community banking services across southwestern, western, and central Virginia. The company is listed on the Nasdaq Capital Market under the symbol ‘NKSH’.