NasdaqCM:ATLO

Stock Analysis Report

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Executive Summary

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

Rewards

Trading at 38.1% below our estimate of its fair value

Pays a high and reliable dividend of 5.8%

Risk Analysis

No risks detected for ATLO from our risk checks.


Snowflake Analysis

Excellent balance sheet established dividend payer.


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

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


Market Performance


7 Day Return

-2.7%

ATLO

0.8%

US Banks

1.3%

US Market


1 Year Return

-39.8%

ATLO

-28.4%

US Banks

15.8%

US Market

Return vs Industry: ATLO underperformed the US Banks industry which returned -28.4% over the past year.

Return vs Market: ATLO underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

ATLOIndustryMarket
7 Day-2.7%0.8%1.3%
30 Day-14.3%-7.5%-4.1%
90 Day-12.0%-1.9%8.4%
1 Year-37.3%-39.8%-25.8%-28.4%18.4%15.8%
3 Year-35.6%-42.6%-20.9%-27.4%38.2%29.0%
5 Year-11.4%-25.7%16.0%1.9%84.9%64.0%

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?

38.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATLO ($17.24) is trading below our estimate of fair value ($27.86)

Significantly Below Fair Value: ATLO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ATLO is poor value based on its PE Ratio (9.7x) compared to the US Banks industry average (9.4x).

PE vs Market: ATLO is good value based on its PE Ratio (9.7x) compared to the US market (18x).


Price to Earnings Growth Ratio

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's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

26.9%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ames National has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Ames National performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATLO has high quality earnings.

Growing Profit Margin: ATLO's current net profit margins (29.9%) are lower than last year (34.2%).


Past Earnings Growth Analysis

Earnings Trend: ATLO's earnings have grown by 3.2% per year over the past 5 years.

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

Earnings vs Industry: ATLO had negative earnings growth (-6.8%) over the past year, making it difficult to compare to the Banks industry average (-3%).


Return on Equity

High ROE: ATLO's Return on Equity (8.1%) is considered low.


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


Financial Institutions Analysis

Asset Level: ATLO's Assets to Equity ratio (9.4x) is low.

Allowance for Bad Loans: ATLO has a low allowance for bad loans (86%).

Low Risk Liabilities: 97% of ATLO's liabilities are made up of primarily low risk sources of funding.

Loan Level: ATLO has an appropriate level of Loans to Assets ratio (60%).

Low Risk Deposits: ATLO's Loans to Deposits ratio (70%) is appropriate.

Level of Bad Loans: ATLO has an appropriate level of bad loans (1.6%).


Next Steps

Dividend

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

5.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ATLO's dividend (5.8%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: ATLO's dividend (5.8%) is in the top 25% of dividend payers in the US market (4.83%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.2%), ATLO's dividend payments are 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

How experienced are the management team and are they aligned to shareholders interests?

12.3yrs

Average management tenure


CEO

John Nelson (53 yo)

2.25yrs

Tenure

US$429,350

Compensation

Mr. John P. Nelson has been 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 Ch ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD429.35K) is below average for companies of similar size in the US market ($USD1.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Nelson
President2.25yrsUS$429.35k0.12%
$ 190.2k
John Pierschbacher
CFO, Secretary & Director2.5yrsUS$272.62k0.071%
$ 113.0k
Scott Bauer
President & Director of First National Bankno dataUS$289.35k0.074%
$ 117.1k
Kevin Deardorff
Senior VP & of Technology Directorno datano data0.089%
$ 141.7k
Joel Jacobsen
VP & Compliance Officerno datano datano data
Jennifer Hanson
VP & Human Resources Directorno datano datano data
Jeffrey Putzier
President and Director of Boone Bank & Trust Cono dataUS$200.60k0.033%
$ 51.8k
Stephen McGill
President and Director of State Bank & Trust Cono dataUS$195.17k0.038%
$ 59.9k
Richard Schreier
President & Director of Reliance State Bankno dataUS$200.28k0.048%
$ 75.5k
Curtis Hoff
President & Director of United Bank8.67yrsno data0.14%
$ 225.2k

12.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: ATLO's management team is seasoned and experienced (12.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Nelson
President2.25yrsUS$429.35k0.12%
$ 190.2k
John Pierschbacher
CFO, Secretary & Director2.5yrsUS$272.62k0.071%
$ 113.0k
Scott Bauer
President & Director of First National Bankno dataUS$289.35k0.074%
$ 117.1k
Jeffrey Putzier
President and Director of Boone Bank & Trust Cono dataUS$200.60k0.033%
$ 51.8k
Stephen McGill
President and Director of State Bank & Trust Cono dataUS$195.17k0.038%
$ 59.9k
Richard Schreier
President & Director of Reliance State Bankno dataUS$200.28k0.048%
$ 75.5k
Curtis Hoff
President & Director of United Bank8.67yrsno data0.14%
$ 225.2k
Betty Baudler Horras
Lead Independent Director3.33yrsUS$29.10k0.27%
$ 425.2k
Thomas Pohlman
Chairman of the Board3.33yrsUS$31.62k0.18%
$ 281.0k
James Larson
Independent Director20.42yrsUS$28.92k0.35%
$ 560.0k
Steven Forth
Independent Director13.42yrsUS$25.16k0.028%
$ 43.8k
David Benson
Independent Director9.25yrsUS$28.83k0.15%
$ 231.3k

8.0yrs

Average Tenure

63yo

Average Age

Experienced Board: ATLO's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$158.645m
  • Shares outstanding: 9.12m
  • Website: https://www.amesnational.com

Number of Employees


Location

  • Ames National Corporation
  • 405 5th Street
  • Box 846
  • 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 products and services primarily in Adams, Boone, Clarke, Hancock, Marshall, Polk, Ringgold, Story, Taylor, and Union ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 00:11
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.