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National Bankshares
(NASDAQ:NKSH)
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Rating:76Outperform
Price Target:
$46.00
â–²(39.35% Upside)
Action:Reiterated
Date:07/03/26
The score is driven primarily by strong financial fundamentals—especially a low-risk balance sheet and improving profitability/cash conversion—tempered by historical earnings variability. Valuation is supportive with a reasonable P/E and strong dividend yield, while technical indicators point to only moderate, not strong, momentum. Corporate actions (higher-yield securities repositioning and ongoing capital returns) add a modest positive offset despite the near-term restructuring loss.
Positive Factors
Conservative balance sheet
Zero reported debt and a conservatively positioned balance sheet materially reduce financial distress risk and preserve funding flexibility. Over the next 2–6 months this underpins the bank’s capacity to lend, absorb losses, sustain dividends and pursue opportunistic buybacks without needing external refinancing.
Negative Factors
Multi-year earnings volatility
Pronounced swings in margins and ROE across recent years reduce confidence in predictable earnings power. For a regional bank, this variability complicates long-term planning, risk provisioning and capital allocation decisions, raising uncertainty about sustained profitability and dividend consistency.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Zero reported debt and a conservatively positioned balance sheet materially reduce financial distress risk and preserve funding flexibility. Over the next 2–6 months this underpins the bank’s capacity to lend, absorb losses, sustain dividends and pursue opportunistic buybacks without needing external refinancing.
Read all positive factors
National Bankshares (NKSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$258.56M
Dividend Yield3.77%
Average Volume (3M)10.28K
Price to Earnings (P/E)12.8
Beta (1Y)0.63
Revenue Growth5.28%
EPS Growth79.93%
CountryUS
Employees254
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.18
Shares Outstanding6,368,410
10 Day Avg. Volume13,549
30 Day Avg. Volume10,278
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.15
Price to Sales (P/S)2.50
P/FCF Ratio14.07
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.22
Revenue Forecast (FY)N/A
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 accept...
How the Company Makes Money
National Bankshares primarily makes money through its bank subsidiary by generating net interest income and noninterest income. (1) Net interest income: The core earnings driver is the spread between interest earned on interest-earning assets (pri...
National Bankshares Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
85
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.18M | 85.31M | 79.08M | 68.19M | 62.51M | 53.41M |
| Gross Profit | 45.76M | 55.58M | 44.13M | 47.90M | 58.72M | 50.71M |
| EBITDA | 13.38M | 20.64M | 10.26M | 19.43M | 32.37M | 25.27M |
| Net Income | 20.31M | 15.83M | 7.62M | 15.69M | 25.93M | 20.38M |
Balance Sheet | ||||||
| Total Assets | 1.83B | 1.82B | 1.81B | 1.66B | 1.68B | 1.70B |
| Cash, Cash Equivalents and Short-Term Investments | 661.51M | 82.73M | 141.50M | 705.20M | 728.28M | 824.87M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 1.64B | 1.64B | 1.66B | 1.51B | 1.55B | 1.51B |
| Stockholders Equity | 192.23M | 184.91M | 156.41M | 140.52M | 122.69M | 191.75M |
Cash Flow | ||||||
| Free Cash Flow | 17.40M | 15.15M | 6.18M | 14.03M | 28.24M | 22.56M |
| Operating Cash Flow | 16.56M | 17.89M | 9.44M | 15.52M | 29.50M | 22.88M |
| Investing Cash Flow | -44.31M | -39.18M | 15.79M | 53.19M | -129.71M | -193.25M |
| Financing Cash Flow | -2.94M | -27.58M | -3.71M | -53.54M | 32.85M | 175.28M |
National Bankshares Technical Analysis
Positive
33.01
Price Trends
36.51
Positive
36.47
Positive
34.80
Positive
Market Momentum
1.21
Negative
73.27
Negative
83.40
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 33.01 is below the 20-day moving average (MA) of 37.63, below the 50-day MA of 36.51, and below the 200-day MA of 34.80, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 73.27 is Negative, neither overbought nor oversold. The STOCH value of 83.40 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 31 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $258.56M | 12.77 | 10.92% | 4.47% | 5.28% | 79.93% | |
74 Outperform | $283.78M | 11.48 | 14.00% | 2.14% | 10.02% | 67.92% | |
72 Outperform | $219.47M | 11.72 | 9.83% | 3.06% | 20.33% | 59.91% | |
70 Outperform | $270.94M | 11.86 | 11.08% | 3.49% | 7.03% | 69.03% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $256.79M | -8.21 | -8.75% | 0.91% | -9.20% | -302.27% |
* Financial Sector Average
NKSH
National Bankshares
41.15
13.67
49.77%
ATLO
Ames National
31.13
13.29
74.51%
INBK
First Internet Bancorp
28.90
7.28
33.69%
FRAF
Franklin Financial Services
63.78
25.64
67.22%
EFSI
Eagle Financial Services
40.41
8.47
26.51%
National Bankshares Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
National Bankshares Repositions Securities Portfolio for Higher Yields
Positive
Jul 2, 2026
On July 2, 2026, National Bankshares, Inc. completed a strategic repositioning of a portion of its available-for-sale securities portfolio, selling $131.87 million in lower-yield securities and purchasing $127.33 million in higher-yield instrument...
Business Operations and StrategyExecutive/Board Changes
National Bankshares Extends Consulting Role for Former CEO
Positive
Jul 1, 2026
National Bankshares, Inc. and its subsidiary, The National Bank of Blacksburg, have extended their relationship with F. Brad Denardo, the bank’s chairman and former president and chief executive officer, through a new consulting agreement ef...
Business Operations and StrategyFinancial Disclosures
National Bankshares Highlights Strong Q1 2026 Performance
Positive
May 18, 2026
On May 18, 2026, National Bankshares released an investor presentation detailing its first-quarter 2026 performance, highlighting GAAP net income of $4.98 million, or $0.78 per share, and core net income of $4.80 million, or $0.75 per share, repre...
Stock BuybackDividendsFinancial Disclosures
National Bankshares Declares Dividend and Renews Share Buyback
Positive
May 13, 2026
On May 13, 2026, National Bankshares, Inc. announced that its board approved a semi-annual cash dividend of $0.75 per share, payable on June 1, 2026, to shareholders of record as of May 26, 2026, citing solid earnings growth in 2025 and early 2026...
Executive/Board ChangesShareholder Meetings
National Bankshares Stockholders Back Board and Governance Measures
Positive
May 13, 2026
On May 12, 2026, National Bankshares, Inc. held its 2026 Annual Meeting of Stockholders, with 76.55% of eligible shares represented in person or by proxy, and stockholders elected three Class 3 directors—Mildred R. Johnson, Lutheria H. Smith...
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.