National Bankshares (NKSH) AI Stock Analysis

• Market Cap: $215.49M
• Dividend Yield: 4.47%
• Average Volume (3M): 10.28K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.64
• 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: 0.83
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 6.88
• 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: 72 Outperform
• Price Target: $37.00 ▲(12.09% Upside)

Overall score reflects a strong financial foundation (low leverage and solid cash flow) tempered by weaker TTM revenue/profitability versus prior highs. Technicals are constructive with the stock trading above key moving averages, while valuation is reasonable with a solid dividend yield. Recent corporate updates are favorable, highlighting strategic execution and operational upgrades.

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

Strong, conservative balance sheet (effectively no debt; equity growth) and healthy operating/free cash flow. However, TTM revenue declined materially and profitability is well below the unusually strong 2021–2023 levels, creating a mixed near-term operating picture.

Income Statement

Profitability remains positive in TTM (Trailing-Twelve-Months) with net income of $8.6M and a solid net margin (~17%). However, the earnings profile has weakened versus prior annual periods: TTM revenue fell ~25% and margins are well below the exceptionally strong 2021–2023 levels. The mix of declining revenue and lower profitability signals a less favorable operating backdrop despite still-decent current margins.

Balance Sheet

Balance sheet looks conservatively positioned with effectively no reported debt and modest leverage (debt-to-equity near zero across periods). Equity has grown from ~$123M (2022) to ~$179M in TTM, supporting balance-sheet resilience. Return on equity improved to ~7.8% in TTM from ~4.9% in 2024, but it remains below the stronger 2022–2023 levels, pointing to reduced efficiency in generating returns from capital.

Cash Flow

Cash generation is healthy: TTM operating cash flow of ~$16.2M and free cash flow of ~$15.2M, with free cash flow up ~56% versus the prior period. That said, cash conversion is less robust than earlier years, with free cash flow running at ~74% of net income in TTM (versus ~90–99% in 2021–2023), suggesting earnings quality/cash timing is not as strong as the historical peak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.27M	79.08M	68.19M	62.51M	53.41M	51.95M
Gross Profit	76.15M	44.13M	47.90M	58.72M	50.71M	44.12M
EBITDA	25.88M	10.26M	19.43M	32.37M	25.27M	19.86M
Net Income	17.21M	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	45.67M	6.18M	14.03M	28.24M	22.56M	11.97M
Operating Cash Flow	44.56M	9.44M	15.52M	29.50M	22.88M	13.79M
Investing Cash Flow	-127.41M	15.79M	53.19M	-129.71M	-193.25M	-177.60M
Financing Cash Flow	-33.34M	-3.71M	-53.54M	32.85M	175.28M	166.67M

National Bankshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.01
• 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 NKSH, the sentiment is Positive. The current price of 33.01 is below the 20-day moving average (MA) of 33.67, above the 50-day MA of 31.29, and above the 200-day MA of 28.11, indicating a bullish trend. The MACD of 0.60 indicates Positive momentum. The RSI at 61.29 is Neutral, neither overbought nor oversold. The STOCH value of 51.58 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
FRAF	73 Outperform	$230.27M	14.68	9.91%	2.51%	12.06%	10.38%
NKSH	72 Outperform	$215.49M	16.53	7.51%	4.47%	9.69%	41.26%
ATLO	70 Outperform	$206.21M	12.90	8.35%	3.49%	5.89%	82.82%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EFSI	64 Neutral	$213.06M	17.72	6.63%	3.11%	-1.45%	-31.32%
BLFY	61 Neutral	$260.97M	-27.58	-2.82%	―	9.02%	17.85%
INBK	48 Neutral	$185.96M	-5.63	-8.99%	1.07%	2.49%	-248.43%

National Bankshares Corporate Events

National Bankshares Highlights Strategic Execution in Investor Presentation

On November 17, 2025, National Bankshares, Inc. released an investor presentation highlighting its successful execution of strategies to drive long-term shareholder value. The company reported significant earnings improvement in Q2 2025, with net income of $2.29 million and core net income of $3.85 million, attributed to higher interest income and lower deposit costs. A major upgrade to its core banking system was completed, enhancing technology and operations, while a leadership transition saw Lara Ramsey succeed Brad Denardo as President and CEO. The company maintains strong liquidity and credit quality, with a robust capital position, and continues to explore growth opportunities through organic means and acquisitions.

The most recent analyst rating on (NKSH) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on National Bankshares stock, see the NKSH Stock Forecast page.

National Bankshares Announces Semi-Annual Dividend

On November 13, 2025, National Bankshares, Inc. announced a semi-annual cash dividend of $0.78 per share, payable on December 1, 2025, to shareholders recorded by November 24, 2025. The company attributes this dividend to improved earnings and successful branch expansion and technology upgrades, reflecting its commitment to enhancing shareholder value.

The most recent analyst rating on (NKSH) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on National Bankshares stock, see the NKSH Stock Forecast page.