NasdaqCM:ATLO

Stock Analysis Report

Executive Summary

Ames National Corporation operates as a multi-bank holding company that provides banking services primarily in the central, north-central, and south-central Iowa counties of Boone, Clarke, Hancock, Marshall, Polk, and Story.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.5%

ATLO

2.7%

US Banks

0.4%

US Market


1 Year Return

0.9%

ATLO

2.7%

US Banks

6.9%

US Market

Return vs Industry: ATLO underperformed the US Banks industry which returned 2.7% over the past year.

Return vs Market: ATLO underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

ATLOIndustryMarket
7 Day-1.5%2.7%0.4%
30 Day-0.5%0.7%-1.1%
90 Day1.1%3.0%-0.5%
1 Year4.5%0.9%5.7%2.7%9.3%6.9%
3 Year12.2%1.3%52.1%41.6%45.8%36.4%
5 Year40.8%19.3%69.2%50.7%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ATLO ($27.5) is trading above our estimate of fair value ($24.5)

Significantly Undervalued: ATLO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ATLO is poor value based on its PE Ratio (14.6x) compared to the Banks industry average (12.6x).

PE vs Market: ATLO is good value based on its PE Ratio (14.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate ATLO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ATLO is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Ames National forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATLO's forecast earnings growth (3.8% per year) is above the savings rate (2.7%).

Earnings vs Market: ATLO's earnings (3.8% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: ATLO's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if ATLO's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if ATLO's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if ATLO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ames National performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ATLO's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: ATLO's earnings growth over the past year (17%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: ATLO earnings growth over the past year (17%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: ATLO's Return on Equity (9.6%) is considered low.


Return on Assets

ROA vs Industry: ATLO has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate ATLO's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Ames National'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: ATLO has a low level of unsold assets or inventory.

Debt Coverage by Assets: ATLO's debt is covered by short term assets (assets are 2.968960x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: ATLO has an appropriate level of bad loans (0.7%)


Next Steps

Dividend

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

3.49%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Ames National before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ATLO's dividend (3.49%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ATLO's dividend (3.49%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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

Growing Dividend: ATLO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.8%), ATLO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

11.4yrs

Average management tenure


CEO

John Nelson (52yo)

1.8yrs

Tenure

US$417,587

Compensation

Mr. John P. Nelson serves as President and Chief Executive Officer of Ames National Corporation since June 29, 2018. He has been a Director of Ames National Corporation since April 25, 2013. He served as C ...


CEO Compensation Analysis

Compensation vs. Market: John has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

11.4yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ATLO's management team is seasoned and experienced (11.4 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: ATLO's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: ATLO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$2,61216 Aug 19
Stephen McGill
EntityIndividual
Role
Unit Board Member
President and Director of State Bank & Trust Co
Shares100
Max PriceUS$26.12
BuyUS$20,00913 Aug 19
John Nelson
EntityIndividual
Role
Chief Executive Officer
President
Shares765
Max PriceUS$26.22
BuyUS$32,81309 Aug 19
John Pierschbacher
EntityIndividual
Role
Member of the Board of Directors
CFO, Secretary & Director
Shares1,250
Max PriceUS$26.25
BuyUS$2,64009 Aug 19
Stephen McGill
EntityIndividual
Role
Unit Board Member
President and Director of State Bank & Trust Co
Shares100
Max PriceUS$26.40
BuyUS$4,01305 Aug 19
Patrick Hagan
EntityIndividual
Shares150
Max PriceUS$26.75
BuyUS$7,83017 Dec 18
Patrick Hagan
EntityIndividual
Shares300
Max PriceUS$26.10
BuyUS$1,38911 Dec 18
Stephen McGill
EntityIndividual
Role
Unit Board Member
President and Director of State Bank & Trust Co
Shares52
Max PriceUS$26.72
BuyUS$2,78007 Dec 18
Stephen McGill
EntityIndividual
Role
Unit Board Member
President and Director of State Bank & Trust Co
Shares100
Max PriceUS$27.80
BuyUS$2,68706 Dec 18
Patrick Hagan
EntityIndividual
Shares100
Max PriceUS$26.87
BuyUS$2,72520 Nov 18
Patrick Hagan
EntityIndividual
Shares100
Max PriceUS$27.25
BuyUS$8,19029 Oct 18
Patrick Hagan
EntityIndividual
Shares300
Max PriceUS$27.30

Ownership Breakdown


Management Team

  • John Pierschbacher (60yo)

    CFO, Secretary & Director

    • Tenure: 1.7yrs
    • Compensation: US$232.00k
  • Jeff Putzier (57yo)

    President and Director of Boone Bank & Trust Co

    • Tenure: 0yrs
    • Compensation: US$200.60k
  • John Nelson (52yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$417.59k
  • Kevin Deardoff (64yo)

    Senior VP & Director of Technology

    • Tenure: 0yrs
  • Steve McGill (64yo)

    President and Director of State Bank & Trust Co

    • Tenure: 0yrs
    • Compensation: US$195.17k
  • Scott Bauer (56yo)

    President of First National Bank & Director of First National Bank

    • Tenure: 0yrs
    • Compensation: US$279.21k
  • Rick Schreier (51yo)

    President & Director of Reliance State Bank

    • Tenure: 0yrs
    • Compensation: US$200.28k
  • Tracy Laws (52yo)

    Controller

    • Tenure: 1.8yrs
  • Jennifer Hanson

    VP & Human Resources Director

    • Tenure: 0yrs
  • Joel Jacobsen

    VP & Compliance Officer

    • Tenure: 0yrs

Board Members

  • John Pierschbacher (60yo)

    CFO, Secretary & Director

    • Tenure: 1.7yrs
    • Compensation: US$232.00k
  • Betty Baudler Horras (65yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$28.20k
  • Tom Pohlman (68yo)

    Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: US$296.85k
  • Jeff Putzier (57yo)

    President and Director of Boone Bank & Trust Co

    • Tenure: 0yrs
    • Compensation: US$200.60k
  • Jami Larson (67yo)

    Independent Director

    • Tenure: 19.5yrs
    • Compensation: US$29.36k
  • John Nelson (52yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$417.59k
  • Steve McGill (64yo)

    President and Director of State Bank & Trust Co

    • Tenure: 0yrs
    • Compensation: US$195.17k
  • Scott Bauer (56yo)

    President of First National Bank & Director of First National Bank

    • Tenure: 0yrs
    • Compensation: US$279.21k
  • Rick Schreier (51yo)

    President & Director of Reliance State Bank

    • Tenure: 0yrs
    • Compensation: US$200.28k
  • Curt Hoff (56yo)

    President & Director of United Bank

    • Tenure: 7.8yrs

Company Information

Ames National Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ames National Corporation
  • Ticker: ATLO
  • Exchange: NasdaqCM
  • Founded: 1903
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$253.883m
  • Shares outstanding: 9.23m
  • Website: https://www.amesnational.com

Number of Employees


Location

  • Ames National Corporation
  • 405 5th Street
  • Ames
  • Iowa
  • 50010
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATLONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDApr 1995

Biography

Ames National Corporation operates as a multi-bank holding company that provides banking services primarily in the central, north-central, and south-central Iowa counties of Boone, Clarke, Hancock, Marshal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:32
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.