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National Bankshares (NKSH)
NASDAQ:NKSH

National Bankshares (NKSH) AI Stock Analysis

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National Bankshares

(NASDAQ:NKSH)

Rating:60Neutral
Price Target:
National Bankshares showcases financial stability with a strong balance sheet and minimal debt, but faces significant challenges due to declining revenues, profitability, and cash flows. The technical indicators point to a bearish trend, and the valuation metrics suggest the stock might be slightly overvalued. Despite a high dividend yield and strategic acquisition, the overall outlook remains cautious due to operational and market performance concerns.

National Bankshares (NKSH) vs. SPDR S&P 500 ETF (SPY)

National Bankshares Business Overview & Revenue Model

Company DescriptionNational Bankshares, Inc. (NKSH) is a financial holding company headquartered in Blacksburg, Virginia. It operates primarily through its subsidiary, National Bank of Blacksburg, which provides a wide range of banking services to individuals and businesses. The company focuses on delivering personalized customer service and offers traditional banking products such as checking and savings accounts, loans, credit cards, and investment services. National Bankshares serves the financial needs of its communities through a network of branch offices located in Southwest Virginia.
How the Company Makes MoneyNational 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
65
Positive
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
80
Positive
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue44.13M47.90M59.43M50.31M46.12M
Gross Profit44.13M47.90M56.39M46.76M42.28M
EBITDA0.0019.43M32.37M25.27M19.86M
Net Income7.62M15.69M25.93M20.38M16.08M
Balance Sheet
Total Assets1.81B1.66B1.68B1.70B1.52B
Cash, Cash Equivalents and Short-Term Investments13.86M86.60M728.28M824.87M680.61M
Total Debt0.001.13M1.44M1.56M2.02M
Total Liabilities1.66B1.51B1.55B48.00K56.00K
Stockholders Equity156.41M140.52M122.69M191.75M200.61M
Cash Flow
Free Cash Flow6.18M14.03M28.24M22.56M11.97M
Operating Cash Flow9.44M15.52M29.50M22.88M13.79M
Investing Cash Flow0.0053.19M-129.71M-202.54M-177.60M
Financing Cash Flow-3.71M-53.54M32.85M175.28M166.67M

National Bankshares Technical Analysis

Technical Analysis Sentiment
Positive
Last Price29.84
Price Trends
50DMA
26.04
Positive
100DMA
26.10
Positive
200DMA
27.38
Positive
Market Momentum
MACD
0.75
Negative
RSI
74.31
Negative
STOCH
97.43
Negative
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 29.84 is above the 20-day moving average (MA) of 26.88, above the 50-day MA of 26.04, and above the 200-day MA of 27.38, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 74.31 is Negative, neither overbought nor oversold. The STOCH value of 97.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NKSH.

National Bankshares Risk Analysis

National Bankshares disclosed 38 risk factors in its most recent earnings report. National Bankshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

National Bankshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$209.67M9.9510.40%3.40%12.67%0.95%
80
Outperform
$174.54M7.6318.94%
77
Outperform
$220.82M10.219.12%1.96%6.42%24.08%
67
Neutral
$17.07B11.919.69%3.75%11.66%-9.47%
65
Neutral
$180.24M9.2611.31%2.46%6.76%161.37%
60
Neutral
$189.88M21.895.66%4.89%16.35%-39.77%
50
Neutral
$158.41M61.041.40%6.93%-5.71%-90.24%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NKSH
National Bankshares
29.84
3.13
11.72%
BCBP
BCB Bancorp
9.23
-0.31
-3.25%
FSFG
First Savings Financial Group
26.05
8.63
49.54%
ISTR
Investar Holding
22.43
7.33
48.54%
OPBK
OP Bancorp
14.12
4.90
53.15%
CBNA
Chain Bridge Bancorp, Inc. Class A
26.60
5.85
28.19%

National Bankshares Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
National Bankshares Highlights Q4 2024 Performance and Acquisition
Positive
Apr 16, 2025

On April 16, 2025, National Bankshares, Inc. released an investor presentation highlighting its strategic initiatives and financial performance for the fourth quarter of 2024. The company reported a net income of $3.08 million and successfully completed the acquisition of Frontier Community Bank, expanding its branch network. The presentation emphasized the company’s improved net interest margin due to Federal Reserve rate cuts, strong deposit profile, and robust capital levels, positioning it well for future growth and shareholder returns.

Spark’s Take on NKSH Stock

According to Spark, TipRanks’ AI Analyst, NKSH is a Neutral.

National Bankshares demonstrates financial stability with a strong balance sheet but faces significant challenges due to declining revenues, profitability, and cash flows. The technical indicators point to a bearish trend, and the valuation metrics suggest the stock might be slightly overvalued. Despite a high dividend yield, the overall outlook is cautious due to the operational and market performance concerns.

To see Spark’s full report on NKSH stock, click here.

Executive/Board Changes
National Bankshares Announces CEO Transition in 2025
Neutral
Mar 31, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025