📊 NKSH Key Takeaways
Is National Bankshares Inc. (NKSH) a Good Investment?
National Bankshares exhibits severe financial distress with a catastrophic 89% YoY revenue collapse and critically low interest coverage of 0.8x, indicating inability to cover interest obligations from operations. The combination of collapsing revenue, minimal asset productivity (ROA of 0.3%), and weak debt servicing capacity signals fundamental operational deterioration and elevated bankruptcy risk.
Fundamentals show a conservatively run community bank with adequate capital, steady profitability (ROA ~0.9%, ROE ~8.6%), and solid cash generation. However, reported revenue volatility and flat net income suggest limited growth momentum amid likely net interest margin pressure. Without clear catalysts for sustainable earnings growth, a neutral stance is warranted.
National Bankshares Inc. Key Strengths (NKSH)
- Strong equity cushion of $187.4M providing capital buffer against asset losses
- Zero long-term debt (0.00x Debt/Equity) preserves financial flexibility for restructuring
- Positive operating cash flow of $3.3M despite operational headwinds
- Consistent profitability with solid cash conversion (positive FCF)
- Conservative balance sheet with no long-term debt and ~10% equity/assets
- Stable bank-like returns (ROA ~0.9%, ROE ~8.6%)
NKSH Stock Risks: National Bankshares Inc. Investment Risks
- Interest coverage of 0.8x is critically low—company cannot cover interest expenses from operating income, indicating imminent debt service distress
- Revenue collapsed 89% YoY with no explanation in available data, suggesting major business deterioration or one-time liquidation event
- ROA of 0.3% is critically low for a bank and indicates severe asset quality impairment or structural operational failure
- EPS growth driven entirely by share count reduction, not operational improvement (net income flat YoY)
- Severe reported revenue decline indicates NIM compression or data anomalies
- Rising deposit costs and funding competition may pressure margins
- Potential credit normalization could raise provisions and dampen earnings
Key Metrics to Watch
- Interest coverage ratio recovery above 1.5x—currently unsustainable below 1.0x
- Revenue stabilization—89% decline must halt and reverse or company faces liquidity crisis
- Non-performing loan ratio and loan loss provisions relative to total loans—assess whether ROA depression is temporary mark-downs or structural asset quality crisis
- Quarterly regulatory capital ratios—verify adequacy under banking regulations given asset quality deterioration
- Net interest margin (NIM)
- Nonperforming assets (NPA) ratio
National Bankshares Inc. (NKSH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 139.1% 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.
NKSH Profit Margin, ROE & Profitability Analysis
NKSH vs Finance Sector: How National Bankshares Inc. Compares
How National Bankshares Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is National Bankshares Inc. Stock Overvalued? NKSH Valuation Analysis 2026
Based on fundamental analysis, National Bankshares Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
National Bankshares Inc. Balance Sheet: NKSH Debt, Cash & Liquidity
NKSH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: National Bankshares Inc.'s revenue has grown significantly by 23% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.24 reflects profitable operations.
NKSH Revenue Growth, EPS Growth & YoY Performance
NKSH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.1M | $3.2M | $0.51 |
| Q3 2025 | $1.9M | $2.7M | $0.42 |
| Q2 2025 | $1.8M | -$307.0K | $-0.05 |
| Q1 2025 | $1.9M | $2.2M | $0.37 |
| Q3 2024 | $1.8M | $2.7M | $0.42 |
| Q2 2024 | $1.7M | -$306.0K | $-0.05 |
| Q1 2024 | $1.8M | $2.2M | $0.37 |
| Q3 2023 | $1.8M | $3.1M | $0.52 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
National Bankshares Inc. Dividends, Buybacks & Capital Allocation
NKSH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for National Bankshares Inc. (CIK: 0000796534)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NKSH
What is the AI rating for NKSH?
National Bankshares Inc. (NKSH) has a Combined AI Grade of C from Claude (D) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NKSH's key strengths?
Claude: Strong equity cushion of $187.4M providing capital buffer against asset losses. Zero long-term debt (0.00x Debt/Equity) preserves financial flexibility for restructuring. ChatGPT: Consistent profitability with solid cash conversion (positive FCF). Conservative balance sheet with no long-term debt and ~10% equity/assets.
What are the risks of investing in NKSH?
Claude: Interest coverage of 0.8x is critically low—company cannot cover interest expenses from operating income, indicating imminent debt service distress. Revenue collapsed 89% YoY with no explanation in available data, suggesting major business deterioration or one-time liquidation event. ChatGPT: Severe reported revenue decline indicates NIM compression or data anomalies. Rising deposit costs and funding competition may pressure margins.
What is NKSH's revenue and growth?
National Bankshares Inc. reported revenue of $2.2M.
Does NKSH pay dividends?
National Bankshares Inc. pays dividends, with $9.6M distributed to shareholders in the trailing twelve months.
Where can I find NKSH SEC filings?
Official SEC filings for National Bankshares Inc. (CIK: 0000796534) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NKSH's EPS?
National Bankshares Inc. has a diluted EPS of $0.78.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NKSH's fundamental grade?
Based on our AI fundamental analysis in May 2026, National Bankshares Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NKSH stock overvalued or undervalued?
Valuation metrics for NKSH: ROE of 2.7% (sector avg: 12%), net margin of 225.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is NKSH's AI grade for 2026?
Our dual AI analysis gives National Bankshares Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NKSH's free cash flow?
National Bankshares Inc.'s operating cash flow is $3.3M, with capital expenditures of $229.0K. FCF margin is 139.1%.
How does NKSH compare to other Finance stocks?
Vs Finance sector averages: Net margin 225.6% (avg: 25%), ROE 2.7% (avg: 12%), current ratio N/A (avg: 1.2).