ATLO

Ames National Corporation

Fundamental data last updated:August 18, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Ames National Corporation operates as a multi-bank holding company that provides banking products and services primarily in Boone, Clarke, Hancock, Marshall, Polk, Story, and Union counties in central, north-central, and south-central Iowa. The company accepts a range of deposits, including checking and savings accounts; and time deposits, such as money market accounts and certificates of deposit. It also provides loans, such as short-term and medium-term commercial and agricultural real estate, residential real estate loans, equipment, vehicle, and home improvement loans; personal loans and lines of credit; agricultural and business operating loans and lines of credit; and originates mortgage loans for sale into the secondary market. In addition, the company offers cash management, merchant credit card processing, safe deposit box, wire transfer, direct deposit of payroll and social security check, and automated/video teller machine access services; and automatic drafts for various accounts, as well as wealth management services. Further, it provides farm management, investment, and custodial services for individuals, businesses, and non-profit organizations; and online, mobile, and private banking services. Ames National Corporation was founded in 1903 and is based in Ames, Iowa.

 


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VALUATION

P/E

11.94

Market Cap ($M USD)

$255.27M

Forward P/E

10.22

PEG

0.61

PRICE TO SALES

2.56

PRICE TO BOOK

1.24

EV / EBITDA

10.41

5-Year Average P/E

Free Cash Flow Yield

8.76%

DCF Value

$145.58

Graham Number

$35.55

Price to FCF

11.41

EV to FCF

12.91

Earnings Yield

8.38%

FCF Yield

8.76%

DIVIDEND

Yield

2.91%

Annual Payout

$0.84

Payout Ratio

34.61%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.41

Next Year EPS Growth Estimate

$2.82

Next Year Revenue Growth Estimate

$79.00M

Return on Equity (ROE)

10.65%

FREE CASH FLOW

Operating Margin

26.77%

Debt-to-Equity

0.29

Piotroski F-Score

8

Altman Z-Score

1.38

Return on Invested Capital (ROIC)

1.27%

Current Ratio

53.78

Quick Ratio

53.78

Net Debt to EBITDA

1.21

Interest Coverage

0.89

Gross Profit margin

69.48%

FCF PER SHARE

$2.51

REVENUE PER SHARE

$11.16

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Gainseekers Quantitative Analysis

Summary

The market appears to be significantly undervaluing Ames National Corporation. With a DCF value of $145.87 and a Graham Number of $35.55, the stock’s recent pricing suggests a substantial discount. The Forward P/E of 10.15 and an Earnings Yield of 8.44% indicate strong earnings potential relative to its price. However, the Altman Z-score of 1.38 raises concerns about financial distress, suggesting that while the stock is cheap, it carries some risk. Overall, the valuation metrics point to a compelling opportunity for value investors willing to navigate potential volatility.

AI Exposure / Tech Reliance

Operating in the regional banking sector, Ames National Corporation is positioned to leverage AI and tech advancements to enhance customer service and operational efficiency. While banks are traditionally slower to adopt cutting-edge technology, the industry's shift towards digital banking and AI-driven analytics offers potential growth avenues. The company's ability to integrate these technologies will be crucial for maintaining competitiveness.

The Bull Case

For the discerning GARP investor, Ames National Corporation offers a compelling case. The Piotroski F-Score of 7 signals strong financial health, while a Return on Equity of 10.65% and an Operating Margin of 26.77% highlight efficient capital use and robust profitability. The Free Cash Flow Yield, though modest, is complemented by a low Debt/Equity ratio of 0.29, indicating prudent financial management. These metrics suggest a company with solid pricing power and the ability to generate sustainable returns.

The Bear Case

Despite its attractive valuation, Ames National Corporation faces structural challenges. The Altman Z-score of 1.38 suggests potential financial distress, and the stock is trading close to its 52-week high, indicating possible overextension. The Price to Free Cash Flow ratio of 11.88 and a Price/Book ratio of 1.23 may not seem excessive, but they suggest limited upside if growth stalls. Additionally, the low Interest Coverage ratio of 0.89 raises red flags about its ability to meet financial obligations in a rising rate environment.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

N/A

Average Analyst Price Target

$31.00

Institutional Ownership %

1-Year Beta

0.29

Insider Buying % (6 Mo)

Distance to 52-Week High

3.09%

Distance to 52-Week Low

41.22%

EARNINGS SURPRISE %

8.06%

50-DAY SMA

$28.23

200-DAY SMA

$24.06

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.