NasdaqGS:AMNB

Stock Analysis Report

American National Bankshares

Executive Summary

American National Bankshares Inc. operates as the bank holding company for American National Bank and Trust Company that provides financial products and services.

Rewards

Trading at 14.5% below its fair value

Earnings are forecast to grow 25.41% per year

Pays a high and reliable dividend of 2.83%

Risk Analysis

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Bank OZK

NasdaqGS:OZK

Share Price & News

How has American National Bankshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMNB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

AMNB

0.9%

US Banks

0.03%

US Market


1 Year Return

12.9%

AMNB

19.0%

US Banks

18.6%

US Market

Return vs Industry: AMNB underperformed the US Banks industry which returned 19% over the past year.

Return vs Market: AMNB underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

AMNBIndustryMarket
7 Day0.7%0.9%0.03%
30 Day1.5%1.1%1.7%
90 Day15.5%15.5%5.7%
1 Year16.2%12.9%22.5%19.0%21.1%18.6%
3 Year19.2%9.8%30.1%21.0%45.6%36.2%
5 Year91.6%63.9%77.5%57.8%71.1%52.3%

Price Volatility Vs. Market

How volatile is American National Bankshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American National Bankshares undervalued compared to its fair value and its price relative to the market?

14.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMNB ($38.1) is trading below our estimate of fair value ($44.55)

Significantly Below Fair Value: AMNB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AMNB is poor value based on its PE Ratio (20.5x) compared to the Banks industry average (12.7x).

PE vs Market: AMNB is poor value based on its PE Ratio (20.5x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: AMNB is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: AMNB is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is American National Bankshares forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

25.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMNB's forecast earnings growth (25.4% per year) is above the savings rate (1.7%).

Earnings vs Market: AMNB's earnings (25.4% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMNB's revenue (6.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: AMNB's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMNB's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has American National Bankshares performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMNB has a large one-off loss of $12.2M impacting its September 30 2019 financial results.

Growing Profit Margin: AMNB's current net profit margins (21.5%) are lower than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: AMNB's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: AMNB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMNB had negative earnings growth (-6.2%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: AMNB's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American National Bankshares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AMNB has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMNB's debt is covered by short term assets (assets are 2x debt).


Financial Institutions Analysis

Asset Level: AMNB's level of assets compared to its equity is low.

Allowance for Bad Loans: AMNB has a sufficient allowance for bad loans.

Low Risk Liabilities: AMNB's liabilities are made up of primarily low risk sources of funding.

Loan Level: AMNB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AMNB's loans are broadly funded by customer deposits.

Level of Bad Loans: AMNB has an appropriate level of bad loans (0.13%)


Next Steps

Dividend

What is American National Bankshares's current dividend yield, its reliability and sustainability?

2.83%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: AMNB's dividend (2.83%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: AMNB's dividend (2.83%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: AMNB's dividends per share have been stable in the past 10 years.

Growing Dividend: AMNB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.9%), AMNB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMNB's dividends in 3 years are forecast to be well covered by earnings (37.5% payout ratio).


Next Steps

Management

What is the CEO of American National Bankshares's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Jeff Haley (59yo)

6.9yrs

Tenure

US$825,569

Compensation

Mr. Jeffrey Vernon Haley, also known as Jeff, has been the President of American National Bankshares Inc., since January 1, 2012 and its Chief Executive Officer since January 1, 2013. Mr. Haley has been th ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD825.57K) is below average for companies of similar size in the US market ($USD1.71M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.9yrs

Average Tenure

58.5yo

Average Age

Experienced Management: AMNB's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

8.9yrs

Average Tenure

69yo

Average Age

Experienced Board: AMNB's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$35,57023 Aug 19
Jeffrey Farrar
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares1,000
Max PriceUS$35.57
BuyUS$112,63007 Aug 19
Franklin Maddux
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,218
Max PriceUS$35.00
BuyUS$71,34007 Aug 19
H. Strader
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Banking Officer
Shares2,000
Max PriceUS$35.67
BuyUS$35,07029 Jul 19
Dan Pleasant
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$35.07
BuyUS$149,87025 Jul 19
Franklin Maddux
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,282
Max PriceUS$35.00
SellUS$30,13228 Jan 19
H. Strader
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Banking Officer
Shares930
Max PriceUS$32.40
BuyUS$34,84222 Jan 19
Dan Pleasant
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,060
Max PriceUS$32.87
BuyUS$65,88013 Dec 18
Frank Crist
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$32.94

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.5%.


Management Team

  • Jeff Farrar (58yo)

    Executive VP

    • Tenure: 0.2yrs
  • Jeff Haley (59yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$825.57k
  • Mark Strosnider

    Vice President of National Bank & Trust Company

    • Tenure: 14.7yrs
  • Carolyn Compton

    Assistant Secretary and Assistant Vice President of American National Bank

    • Tenure: 0yrs
  • H. Strader (61yo)

    Executive VP & Chief Banking Officer

    • Tenure: 0yrs
    • Compensation: US$554.28k
  • Cathy Liles (54yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 3.9yrs
  • Brandon Atkins

    SVP of American National Bank & Trust Co. & Senior Risk Officer of American National Bank & Trust Co

    • Tenure: 2.9yrs
  • M. Burris

    SVP & Commercial Relationship Mngr - American National Bank & Trust Co

    • Tenure: 2.9yrs
  • William Kirby

    SVP of American National Bank & Trust Co. and Market President of American National Bank & Trust Co.

    • Tenure: 2.9yrs

Board Members

  • Charley Majors (74yo)

    Chairman of the Board

    • Tenure: 7.9yrs
    • Compensation: US$160.00k
  • Jeff Haley (59yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$825.57k
  • Claude Owen (74yo)

    Independent Director

    • Tenure: 35.9yrs
    • Compensation: US$56.40k
  • Michael Haley (69yo)

    Lead Director

    • Tenure: 0.6yrs
    • Compensation: US$54.60k
  • Franklin Maddux (62yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$48.00k
  • F. Hornaday (69yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$48.90k
  • Frank Crist (74yo)

    Director

    • Tenure: 0yrs
    • Compensation: US$48.90k
  • Charles Harris (69yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$46.78k
  • Dan Pleasant (68yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$50.10k
  • Ronda Penn (56yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$49.20k

Company Information

American National Bankshares Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American National Bankshares Inc.
  • Ticker: AMNB
  • Exchange: NasdaqGS
  • Founded: 1909
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$415.528m
  • Shares outstanding: 11.11m
  • Website: https://www.amnb.com

Number of Employees


Location

  • American National Bankshares Inc.
  • 628 Main Street
  • Danville
  • Virginia
  • 24541
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMNBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1993

Biography

American National Bankshares Inc. operates as the bank holding company for American National Bank and Trust Company that provides financial products and services. The company operates through two segments, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:31
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.