Alerus Financial Corporation (ALRS) AI Stock Analysis

Founded in 1879 and based in Grand Forks, North Dakota, Alerus Financial Corporation operates through its subsidiary, Alerus Financial, National Association. The company provides a diversified suite of financial services across Banking, Retirement and Benefit Services, Wealth Management, and Mortgage segments. Its banking offerings include demand deposits, money market accounts, certificates of deposit, treasury management, commercial lending, lines of credit, and residential construction financing. In Wealth Management, Alerus provides investment advisory, trust services, retirement planning, and estate administration. The Retirement and Benefit Services segment administers retirement plans, employee stock ownership plans, and health savings accounts.

Alerus Financial grew revenue from $235.8M in FY2021 to a peak of $338.3M in FY2024 before dipping 3.1% to $327.9M in FY2025, generating a 5-year revenue CAGR of 6.5%. Net income declined from $52.7M in FY2021 to $17.4M in FY2025, bringing net margin down from 22.3% to 5.3%. Operating margin stood at 6.9% in FY2025 and 36.5% over the trailing twelve months. In the latest quarter ended June 30, 2026, quarterly revenue grew 7.2% year-over-year, while quarterly earnings grew 3.8%.

As of June 30, 2026, Alerus Financial held $109.0M in cash and short-term investments against $447.0M in total debt, resulting in net debt of $338.0M. Total assets stood at $5.29B and shareholders' equity reached $583.1M, reflecting a debt-to-equity ratio of 0.77 and a current ratio of 0.37. In FY2025, the company generated $67.5M in operating cash flow and $58.8M in free cash flow. Cash deployment in FY2025 included $8.7M in capital expenditures, $20.8M in dividends paid, and $737,000 in share buybacks.

At $31.34, Alerus Financial trades at a trailing P/E of 29.0x, above the median of 12.1x for its US-listed Financial Services peers. The stock's price-to-sales ratio is 3.2x, matching the peer group median of 3.2x, while its price-to-book ratio is 1.4x. Over the past year, ALRS returned 54.9%, outperforming the S&P 500 benchmark return of 16.8%. Over a 5-year period, however, its 19.3% return lagged the S&P 500 return of 83.0%.

Alerus Financial pays an annual forward dividend of $0.88 per share, representing a 2.81% dividend yield. The company has paid dividends for 32 consecutive years, with an annualized 5-year dividend growth rate of 6.7%. Its payout ratio stands at 27.0%, and dividends are distributed quarterly, with the last ex-dividend date on September 25, 2026.

Wall Street coverage consists of 2 Buy and 3 Hold ratings. The mean price target is $35.20, implying a 12.3% upside compared to the last close of $31.34. For the fiscal year ending December 31, 2026, analysts estimate EPS of $3.02, up 8.5%, on revenue of $311.1M. For the following fiscal year, 5 analysts expect revenue of $319.1M and EPS of $2.81. Alerus beat EPS estimates in each of the last 4 quarters, with next earnings scheduled for October 28, 2026.

This page is an AI-written research summary of Alerus Financial Corporation (ALRS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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