📊 ATLO Key Takeaways
Investment Thesis
Ames National Corp demonstrates strong fundamental momentum with revenue surging 56.5% YoY and net income jumping 86.2%, indicating robust operational leverage and earnings quality. The company maintains a healthy balance sheet with conservative debt-to-equity of 0.09x and generates substantial free cash flow (23.8% FCF margin), supporting both financial stability and capital deployment capacity. However, moderate interest coverage of 2.6x and modest ROA of 0.9% warrant monitoring as the company scales.
ATLO Strengths
- Exceptional revenue growth of 56.5% YoY with net income growing even faster at 86.2%, demonstrating strong operating leverage
- Robust free cash flow generation of $20.7M with 23.8% FCF margin indicates high-quality earnings
- Conservative leverage profile with 0.09x debt-to-equity ratio and $126.8M cash position providing financial flexibility
- Strong net margin of 21.8% and operating margin of 27.4% reflecting efficient core operations
ATLO Risks
- Interest coverage ratio of 2.6x is tight and leaves limited cushion for adverse economic conditions or rising interest rates in the banking sector
- ROA of 0.9% and ROE of 9.2% are modest, suggesting below-peer returns on deployed capital
- Rapid growth trajectory (56.5% revenue growth) may not be sustainable; reversion to historical growth rates could disappoint
- Limited visibility into growth drivers and sustainability of elevated margins in competitive banking environment
Key Metrics to Watch
- Net interest margin trend and deposit growth sustainability
- Non-performing loan ratio and credit quality deterioration
- Year-over-year revenue and net income growth trajectory in upcoming quarters
- Return on assets and return on equity improvement path
- Interest coverage ratio stability amid changing rate environment
ATLO Financial Metrics
💡 AI Analyst Insight
The 23.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ATLO Profitability Ratios
ATLO vs Finance Sector
How AMES NATIONAL CORP compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
ATLO Balance Sheet & Liquidity
ATLO 5-Year Financial Trend
5-Year Trend Summary: AMES NATIONAL CORP's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $1.14 reflects profitable operations.
ATLO Growth Metrics (YoY)
ATLO Capital Allocation
ATLO SEC Filings
Access official SEC EDGAR filings for AMES NATIONAL CORP (CIK: 0001132651)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ATLO
What is the AI rating for ATLO?
AMES NATIONAL CORP (ATLO) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ATLO's key strengths?
Exceptional revenue growth of 56.5% YoY with net income growing even faster at 86.2%, demonstrating strong operating leverage. Robust free cash flow generation of $20.7M with 23.8% FCF margin indicates high-quality earnings.
What are the risks of investing in ATLO?
Interest coverage ratio of 2.6x is tight and leaves limited cushion for adverse economic conditions or rising interest rates in the banking sector. ROA of 0.9% and ROE of 9.2% are modest, suggesting below-peer returns on deployed capital.
What is ATLO's revenue and growth?
AMES NATIONAL CORP reported revenue of $87.1M.
Does ATLO pay dividends?
AMES NATIONAL CORP pays dividends, with $7.1M distributed to shareholders in the trailing twelve months.
Where can I find ATLO SEC filings?
Official SEC filings for AMES NATIONAL CORP (CIK: 0001132651) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ATLO's EPS?
AMES NATIONAL CORP has a diluted EPS of $0.38.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.