📊 ALRS Key Takeaways
Is Alerus Financial Corp. (ALRS) a Good Investment?
Alerus Financial demonstrates strong top-line growth of 62.1% with healthy operating margins and robust free cash flow, but concerning fundamentals undermine investment appeal. Declining EPS of -18.1% despite surging revenue, weak interest coverage of 0.5x, and deteriorating returns on capital (ROE 4.0%, ROA 0.4%) suggest operational stress and potential asset quality issues within the banking operations.
Alerus Financial shows strong top-line growth and solid positive free cash flow, supported by a manageable debt load and a stable equity base. However, the quality of that growth is questionable because revenue expanded sharply while net income was essentially flat, EPS declined materially, and profitability metrics such as ROE and ROA remain weak. Fundamentally, this looks like a financially stable bank with limited earnings efficiency rather than a clearly strengthening profit compounder.
Alerus Financial Corp. Key Strengths (ALRS)
- Exceptional revenue growth of 62.1% year-over-year
- Robust free cash flow generation of $25.8M with 38.5% FCF margin
- Conservative capital structure with low leverage (Debt/Equity 0.10x) and $128.8M cash position
- Revenue grew 62.1% year over year, indicating meaningful business expansion
- Operating cash flow and free cash flow are positive, with a strong 21.0% FCF margin
- Leverage appears modest with debt-to-equity of 0.10x and long-term debt of $59.18M against $564.93M of equity
ALRS Stock Risks: Alerus Financial Corp. Investment Risks
- Interest coverage ratio of 0.5x indicates insufficient operating income to service debt obligations
- EPS declining 18.1% while revenue grows 62.1% signals profitability deterioration and operational leverage failure
- Severely depressed returns on capital (ROE 4.0%, ROA 0.4%) suggest poor asset deployment and potential credit quality deterioration
- Net income was down 0.2% and diluted EPS fell 18.1% despite strong revenue growth, pointing to weak earnings conversion
- Profitability is subdued with ROE of 3.1%, ROA of 0.3%, and net margin of 6.2%
- Interest coverage of 0.4x suggests weak earnings support relative to interest burden
Key Metrics to Watch
- Interest coverage ratio trajectory and net interest margin compression
- Net income growth acceleration relative to revenue to close profitability gap
- Return on equity and return on assets improvement indicating better capital efficiency
- ROE and ROA improvement
- Net income and diluted EPS growth relative to revenue growth
Alerus Financial Corp. (ALRS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 38.5% 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.
ALRS Profit Margin, ROE & Profitability Analysis
ALRS vs Finance Sector: How Alerus Financial Corp. Compares
How Alerus Financial Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Alerus Financial Corp. Stock Overvalued? ALRS Valuation Analysis 2026
Based on fundamental analysis, Alerus Financial Corp. 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.
Alerus Financial Corp. Balance Sheet: ALRS Debt, Cash & Liquidity
ALRS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Alerus Financial Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.58 reflects profitable operations.
ALRS Revenue Growth, EPS Growth & YoY Performance
Alerus Financial Corp. Dividends, Buybacks & Capital Allocation
ALRS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Alerus Financial Corp. (CIK: 0000903419)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ALRS
What is the AI rating for ALRS?
Alerus Financial Corp. (ALRS) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALRS's key strengths?
Claude: Exceptional revenue growth of 62.1% year-over-year. Robust free cash flow generation of $25.8M with 38.5% FCF margin. ChatGPT: Revenue grew 62.1% year over year, indicating meaningful business expansion. Operating cash flow and free cash flow are positive, with a strong 21.0% FCF margin.
What are the risks of investing in ALRS?
Claude: Interest coverage ratio of 0.5x indicates insufficient operating income to service debt obligations. EPS declining 18.1% while revenue grows 62.1% signals profitability deterioration and operational leverage failure. ChatGPT: Net income was down 0.2% and diluted EPS fell 18.1% despite strong revenue growth, pointing to weak earnings conversion. Profitability is subdued with ROE of 3.1%, ROA of 0.3%, and net margin of 6.2%.
What is ALRS's revenue and growth?
Alerus Financial Corp. reported revenue of $67.0M.
Does ALRS pay dividends?
Alerus Financial Corp. pays dividends, with $5.1M distributed to shareholders in the trailing twelve months.
Where can I find ALRS SEC filings?
Official SEC filings for Alerus Financial Corp. (CIK: 0000903419) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ALRS's EPS?
Alerus Financial Corp. has a diluted EPS of $0.89.
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 ALRS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Alerus Financial Corp. has a B grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ALRS stock overvalued or undervalued?
Valuation metrics for ALRS: ROE of 4.0% (sector avg: 12%), net margin of 34.3% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is ALRS's AI grade for 2026?
Our dual AI analysis gives Alerus Financial Corp. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ALRS's free cash flow?
Alerus Financial Corp.'s operating cash flow is $27.8M, with capital expenditures of $2.0M. FCF margin is 38.5%.
How does ALRS compare to other Finance stocks?
Vs Finance sector averages: Net margin 34.3% (avg: 25%), ROE 4.0% (avg: 12%), current ratio N/A (avg: 1.2).