NasdaqCM:NKSH

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.

Risks

  • National Bankshares is covered by less than 3 analysts.

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


Market Performance


7 Day Return

0.09%

NasdaqCM:NKSH

-1.8%

US Banks

0.2%

US Market


1 Year Return

-28.8%

NasdaqCM:NKSH

-15.3%

US Banks

-0.7%

US Market

NKSH underperformed the Banks industry which returned -15.3% over the past year.

NKSH underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

NKSHIndustryMarket
7 Day0.09%-1.8%0.2%
30 Day-5.6%-6.4%-2.7%
90 Day-13.9%-4.0%1.6%
1 Year-26.5%-28.8%-12.9%-15.3%1.6%-0.7%
3 Year5.7%-3.2%41.3%31.7%40.0%30.9%
5 Year35.6%15.6%50.8%34.5%53.8%36.8%

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 based on future cash flows and its price relative to the stock market?

13.36x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

National Bankshares's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

National Bankshares's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

National Bankshares is overvalued based on earnings compared to the US Banks industry average.

National Bankshares is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

National Bankshares earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

National Bankshares is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

-3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

National Bankshares's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

National Bankshares's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

National Bankshares's revenue growth is positive but not above the United States of America market average.

National Bankshares's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

National Bankshares's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if National Bankshares will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has National Bankshares performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

National Bankshares's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

National Bankshares's 1-year earnings growth exceeds its 5-year average (21.4% vs -2.1%)

National Bankshares's earnings growth has not exceeded the US Banks industry average in the past year (21.4% vs 33.2%).


Return on Equity

National Bankshares has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

National Bankshares used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if National Bankshares improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

National Bankshares has an acceptable proportion of non-loan assets held.

National Bankshares has a sufficient allowance for bad loans.

National Bankshares's liabilities are made up of primarily low risk sources of funding.

National Bankshares's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at National Bankshares are broadly funded by customer deposits.

National Bankshares has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

3.84%

Expected Dividend Yield


Dividend Yield and Payments Analysis

National Bankshares's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

National Bankshares's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

F. Denardo (66yo)

1.9yrs

Tenure

US$1,647,596

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

F.'s remuneration is higher than average for companies of similar size in United States of America.

F.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.6yrs

Average Tenure

52yo

Average Age

The average tenure for the National Bankshares management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.5yrs

Average Tenure

66.5yo

Average Age

The tenure for the National Bankshares board of directors is about average.


Insider Trading

More shares have been bought than sold by National Bankshares individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$10,75523 Jul 19
John Dooley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares300
Max PriceUS$35.85
BuyUS$2,23510 Jun 19
Mary Miller
EntityIndividual
Role
Member of the Board of Directors
Director
Shares60
Max PriceUS$37.25
BuyUS$37,00031 May 19
Lawrence Ball
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$37.00
BuyUS$40,00016 May 19
Lawrence Ball
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$40.00
BuyUS$41,78013 Mar 19
Norman Fitzwater
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$41.78
BuyUS$19,50005 Mar 19
John Dooley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$39.00
BuyUS$55,32020 Feb 19
Mildred Johnson
EntityIndividual
Shares1,384
Max PriceUS$40.53
BuyUS$18,91015 Feb 19
Lawrence Ball
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$37.82
BuyUS$11,01812 Feb 19
F. Denardo
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board
Shares287
Max PriceUS$38.40
BuyUS$109,50005 Feb 19
Jack Lewis
EntityIndividual
Shares3,000
Max PriceUS$36.50
BuyUS$18,48021 Dec 18
Charles Green
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares500
Max PriceUS$36.96
BuyUS$12,46321 Dec 18
Glenn Reynolds
EntityIndividual
Role
Member of the Board of Directors
Director
Shares332
Max PriceUS$38.00
BuyUS$20,00013 Dec 18
Charles Green
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares500
Max PriceUS$40.00
BuyUS$12,61811 Dec 18
James Thompson
EntityIndividual
Shares300
Max PriceUS$42.06
BuyUS$20,75011 Dec 18
Lawrence Ball
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$41.50
BuyUS$2,47011 Dec 18
John Dooley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares58
Max PriceUS$42.59
BuyUS$3,80011 Dec 18
Mary Miller
EntityIndividual
Role
Member of the Board of Directors
Director
Shares100
Max PriceUS$38.00
BuyUS$26,53106 Dec 18
John Dooley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares617
Max PriceUS$43.00
BuyUS$22,46015 Nov 18
Lawrence Ball
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$44.92

Ownership Breakdown


Management Team

  • F. Denardo (66yo)

    Chairman of the Board

    • Tenure: 1.9yrs
    • Compensation: US$1.65m
  • David Skeens (52yo)

    Treasurer & CFO

    • Tenure: 10.6yrs
    • Compensation: US$260.48k
  • Shelby Evans

    Vice President of Compliance

    • Tenure: 0.0yrs
  • Patrick Lamm

    Senior Vice President of Credit Administration

    • Tenure: 7.0yrs
  • Lora Jones

    Controller

    • Tenure: 0.0yrs
  • Lara Ramsey (50yo)

    Senior VP of Administration & Corporate Secretary

    • Tenure: 8.2yrs
    • Compensation: US$199.52k
  • R. Dodson

    President

    • Tenure: 0.0yrs
    • Compensation: US$105.30k

Board Members

  • F. Denardo (66yo)

    Chairman of the Board

    • Tenure: 1.9yrs
    • Compensation: US$1.65m
  • Mary Miller (68yo)

    Director

    • Tenure: 16.6yrs
    • Compensation: US$35.00k
  • Lawrence Ball (64yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$34.55k
  • Charles Green (68yo)

    Vice Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: US$35.00k
  • William Peery (67yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: US$33.75k
  • Glenn Reynolds (66yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$35.80k
  • John Dooley (64yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$34.55k
  • Michael Dye (64yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$35.00k
  • J. Webb (70yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$35.80k
  • Norman Fitzwater (68yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$35.00k

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$220.084m
  • Shares outstanding: 6.51m
  • Website: https://www.nationalbankshares.com

Number of Employees


Location

  • National Bankshares, Inc.
  • 101 Hubbard Street
  • PO Box 90002
  • Blacksburg
  • Virginia
  • 24062
  • 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 Analysis2019/08/21 23:43
End of Day Share Price2019/08/21 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.