Ames National Corporation (ATLO) AI Stock Analysis

Ames National Corporation operates as a multi-bank holding company based in Ames, Iowa, serving customers across Boone, Clarke, Hancock, Marshall, Polk, Story, and Union counties. Established in 1903, the company provides deposit products including checking, savings, money market accounts, and certificates of deposit. Its lending activities span commercial, agricultural, and residential real estate loans, alongside personal loans, equipment financing, and operating lines of credit. Additionally, the company originates mortgages for secondary market sale and offers financial management solutions, such as cash management, merchant credit card processing, wealth management, and private banking.

Revenue rose from $71.0M in FY2021 to $98.3M in FY2025, reflecting a 5-year revenue CAGR of 6.0%. After net income dropped from $23.9M in FY2021 to $10.2M in FY2024, it rebounded to $19.0M in FY2025 as gross margin reached 66.3% and operating margin rose to 23.6%. Over the trailing twelve months, revenue was $76.4M with EPS of $2.58 and an operating margin of 46.4%. In the latest quarter ended September 30, 2026, quarterly revenue grew 27.6% year-over-year, while quarterly earnings increased 55.2%.

As of June 30, 2026, Ames National Corporation held $807.7M in cash and short-term investments against $47.4M in total debt, resulting in net cash of $760.3M and a debt-to-equity ratio of 0.22. Shareholders' equity was $213.1M out of $2.12B in total assets, while the current ratio stood at 0.43. In FY2025, operating cash flow was $21.3M and free cash flow was $20.7M. Capital allocation in FY2025 included $642,000 in capital expenditures, $1.7M in share buybacks, and $7.1M in dividends paid.

Ames National Corporation trades at a trailing P/E of 12.5x and a forward P/E of 12.8x, compared to medians of 12.1x and 10.8x for its US-listed Financial Services peers. The stock's price-to-sales multiple is 3.7x versus the peer median of 3.2x, while price-to-book is 1.3x and the PEG ratio is 1.03. Over the past year, the stock returned 69.1%, outperforming the S&P 500 return of 16.8%. Over a 5-year period, the stock returned 74.7% compared to 83.0% for the S&P 500.

Ames National Corporation pays an annual forward dividend of $0.96 per share, representing a dividend yield of 2.98% and a payout ratio of 29.8%. The company distributes dividends quarterly and has paid dividends for 29 consecutive years. The annualized 5-year dividend growth rate is -4.2%, and the last ex-dividend date was September 1, 2026.

Wall Street coverage includes 1 analyst rating, categorized as Hold, with 0 Buy and 0 Sell ratings. The mean price target is $33.00, representing 2.6% upside compared to the last close of $32.17. For the fiscal year ending December 31, 2026, the EPS estimate is $2.72. The EPS estimate for the next fiscal year is $2.82, indicating projected earnings growth of 3.7%. Over the last 4 quarters, the company beat EPS estimates 3 times.

This page is an AI-written research summary of Ames National Corporation (ATLO). 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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