NasdaqCM:NKSH

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Executive Summary

National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking services to individuals, businesses, non-profits, and local governments. More Details


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NKSH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NKSH's weekly volatility has decreased from 11% to 4% over the past year.


Market Performance


7 Day Return

-0.6%

NKSH

-0.2%

US Banks

-4.6%

US Market


1 Year Return

-5.1%

NKSH

19.8%

US Banks

38.5%

US Market

Return vs Industry: NKSH underperformed the US Banks industry which returned 19.4% over the past year.

Return vs Market: NKSH underperformed the US Market which returned 38.9% over the past year.


Shareholder returns

NKSHIndustryMarket
7 Day-0.6%-0.2%-4.6%
30 Day1.6%15.4%0.6%
90 Day5.9%22.3%1.9%
1 Year-0.8%-5.1%24.2%19.8%41.5%38.5%
3 Year-10.9%-19.6%11.6%2.0%56.7%46.7%
5 Year20.1%1.9%91.3%67.0%123.5%98.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NKSH ($33.16) is trading below our estimate of fair value ($43.98)

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


Price To Earnings Ratio

PE vs Industry: NKSH is poor value based on its PE Ratio (13.4x) compared to the US Banks industry average (12.5x).

PE vs Market: NKSH is good value based on its PE Ratio (13.4x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: NKSH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NKSH's PB Ratio (1.1x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

-4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NKSH's earnings are forecast to decline over the next 3 years (-4.4% per year).

Earnings vs Market: NKSH's earnings are forecast to decline over the next 3 years (-4.4% per year).

High Growth Earnings: NKSH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NKSH's revenue (2.5% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: NKSH's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NKSH's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has National Bankshares performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NKSH has high quality earnings.

Growing Profit Margin: NKSH's current net profit margins (36.4%) are lower than last year (37.6%).


Past Earnings Growth Analysis

Earnings Trend: NKSH's earnings have grown by 2.5% per year over the past 5 years.

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

Earnings vs Industry: NKSH had negative earnings growth (-7.9%) over the past year, making it difficult to compare to the Banks industry average (0.5%).


Return on Equity

High ROE: NKSH's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is 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


Financial Institutions Analysis

Asset Level: NKSH's Assets to Equity ratio (7.6x) is low.

Allowance for Bad Loans: NKSH has a sufficient allowance for bad loans (230%).

Low Risk Liabilities: 98% of NKSH's liabilities are made up of primarily low risk sources of funding.

Loan Level: NKSH has an appropriate level of Loans to Assets ratio (50%).

Low Risk Deposits: NKSH's Loans to Deposits ratio (59%) is appropriate.

Level of Bad Loans: NKSH has an appropriate level of bad loans (0.5%).


Next Steps

Dividend

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

4.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NKSH's dividend (4.19%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: NKSH's dividend (4.19%) is in the top 25% of dividend payers in the US market (3.72%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.1%), NKSH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NKSH's dividends in 3 years are forecast to be covered by earnings (60.4% payout ratio).


Next Steps

Management

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

9.1yrs

Average management tenure


CEO

F. Denardo (67 yo)

3.42yrs

Tenure

US$1,115,350

Compensation

Mr. F. Brad Denardo has been President and Chief Executive Officer of National Bankshares, Inc. since September 1, 2017 and has been its Chairman of the Board since May 15, 2019. Mr. Denardo serves as Chie...


CEO Compensation Analysis

Compensation vs Market: F.'s total compensation ($USD1.12M) is about average for companies of similar size in the US market ($USD944.53K).

Compensation vs Earnings: F.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
F. Denardo
Chairman of the Board3.42yrsUS$1.12m0.53%
$ 1.1m
David Skeens
Treasurer & CFO12.08yrsUS$437.35k0.14%
$ 292.8k
Lara Ramsey
Senior VP of Administration & Corporate Secretary9.67yrsUS$306.03k0.073%
$ 155.4k
Rebecca Melton
Senior VP & Chief Credit Officer of National Bank of Blacksburgno dataUS$243.85kno data
Shelby Evans
Vice President of Complianceno datano datano data
Patrick Lamm
Senior Vice President of Credit Administration8.5yrsno datano data
Joseph Beury
Senior VP & Trust Officerno datano datano data
Lora Jones
Controllerno datano datano data
R. Dodson
Presidentno dataUS$105.30kno data

9.1yrs

Average Tenure

52yo

Average Age

Experienced Management: NKSH's management team is seasoned and experienced (9.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
F. Denardo
Chairman of the Board3.42yrsUS$1.12m0.53%
$ 1.1m
Mary Miller
Independent Director18.08yrsUS$35.75k0.078%
$ 165.8k
Lawrence Ball
Independent Director14.83yrsUS$39.40k0.16%
$ 331.6k
Charles Green
Independent Vice Chairman of the Board1.75yrsUS$36.55k0.69%
$ 1.5m
William Peery
Independent Director15.83yrsUS$34.50k0.20%
$ 431.0k
Glenn Reynolds
Independent Director14.83yrsUS$37.80k0.12%
$ 251.7k
Mildred Johnson
Independent Director3.75yrsUS$37.00k0.034%
$ 72.4k
James Thompson
Independent Director3.75yrsUS$35.75k0.13%
$ 272.6k
John Dooley
Independent Director8.25yrsUS$38.15k0.12%
$ 252.0k
Michael Dye
Independent Director3.75yrsUS$37.00k0.048%
$ 103.0k
J. Webb
Independent Director3.75yrsUS$39.40k0.11%
$ 239.3k
Norman Fitzwater
Independent Director3.75yrsUS$38.60k0.088%
$ 187.9k

3.8yrs

Average Tenure

67yo

Average Age

Experienced Board: NKSH's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NKSH 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

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


Key Information

  • Name: National Bankshares, Inc.
  • Ticker: NKSH
  • Exchange: NasdaqCM
  • Founded: 1891
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$213.286m
  • Shares outstanding: 6.43m
  • Website: https://www.nationalbankshares.com

Number of Employees


Location

  • National Bankshares, Inc.
  • 101 Hubbard Street
  • PO Box 90002
  • Blacksburg
  • Virginia
  • 24062-9002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NKSHNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDApr 1993

Biography

National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking services to individuals, businesses, non-profits, and local go...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 23:42
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.