📊 ATLO Key Takeaways
Is Ames National Corp. (ATLO) a Good Investment?
Strong revenue and earnings growth (+56.5% and +86.2% YoY) with excellent operating margins (34.6%) are offset by critical concerns: interest coverage ratio of 0.8x indicates operating income cannot cover interest expenses, and returns are severely depressed (ROA 0.3%, ROE 2.9%). Growth momentum suggests potential improvement, but fundamental profitability challenges require resolution.
AMES NATIONAL CORP shows a meaningful improvement in core profitability, with revenue up 56.5%, net income up 86.2%, and strong free cash flow generation relative to revenue. The balance sheet appears conservatively levered, which supports financial resilience, but middling returns on assets/equity and modest interest coverage suggest the bank still needs to prove that recent earnings strength is durable and high quality.
Ames National Corp. Key Strengths (ATLO)
- Exceptional revenue growth of +56.5% YoY and net income growth of +86.2% YoY
- Excellent operating margin of 34.6% and net margin of 26.8%
- Strong free cash flow generation of $8.0M with 35.8% FCF margin and conservative balance sheet (0.09x debt-to-equity)
- Strong year-over-year revenue and net income growth indicate improving earnings power
- Low debt-to-equity and modest long-term debt support balance sheet stability
- Healthy free cash flow and a 23.8% FCF margin suggest solid cash conversion
ATLO Stock Risks: Ames National Corp. Investment Risks
- Interest coverage ratio of 0.8x is critically below 1.0x, indicating operating income cannot cover interest expenses
- Extremely low return on assets (0.3%) and return on equity (2.9%) signal severe capital inefficiency despite earnings growth
- Rapid growth may be masking deteriorating asset quality, margin compression, or structural funding cost challenges typical of regional banks
- Interest coverage of 2.6x is not especially strong and leaves less cushion if funding costs rise
- ROA of 0.9% and ROE of 9.2% are decent but not standout for a bank, limiting the margin for error
- Bank fundamentals can be sensitive to credit quality deterioration or deposit/funding pressure even when headline earnings improve
Key Metrics to Watch
- Interest coverage ratio - must improve above 1.0x to indicate sustainable profitability
- Return on equity and return on assets - current levels unsustainable; need significant improvement to validate growth quality
- Net interest margin trends - critical indicator of core banking profitability and competitive positioning
- Net interest margin and loan loss provisions
- Deposit trends and nonperforming assets
Ames National Corp. (ATLO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 35.8% 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 Profit Margin, ROE & Profitability Analysis
ATLO vs Finance Sector: How Ames National Corp. Compares
How Ames National Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ames National Corp. Stock Overvalued? ATLO Valuation Analysis 2026
Based on fundamental analysis, Ames National 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.
Ames National Corp. Balance Sheet: ATLO Debt, Cash & Liquidity
ATLO Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
Ames National Corp. Dividends, Buybacks & Capital Allocation
ATLO SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 64% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ATLO's key strengths?
Claude: Exceptional revenue growth of +56.5% YoY and net income growth of +86.2% YoY. Excellent operating margin of 34.6% and net margin of 26.8%. ChatGPT: Strong year-over-year revenue and net income growth indicate improving earnings power. Low debt-to-equity and modest long-term debt support balance sheet stability.
What are the risks of investing in ATLO?
Claude: Interest coverage ratio of 0.8x is critically below 1.0x, indicating operating income cannot cover interest expenses. Extremely low return on assets (0.3%) and return on equity (2.9%) signal severe capital inefficiency despite earnings growth. ChatGPT: Interest coverage of 2.6x is not especially strong and leaves less cushion if funding costs rise. ROA of 0.9% and ROE of 9.2% are decent but not standout for a bank, limiting the margin for error.
What is ATLO's revenue and growth?
Ames National Corp. reported revenue of $22.2M.
Does ATLO pay dividends?
Ames National Corp. pays dividends, with $2.1M 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?
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 ATLO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ames National Corp. has a A grade with 64% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ATLO stock overvalued or undervalued?
Valuation metrics for ATLO: ROE of 2.9% (sector avg: 12%), net margin of 26.8% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is ATLO's AI grade for 2026?
Our dual AI analysis gives Ames National Corp. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ATLO's free cash flow?
Ames National Corp.'s operating cash flow is $8.4M, with capital expenditures of $405.0K. FCF margin is 35.8%.
How does ATLO compare to other Finance stocks?
Vs Finance sector averages: Net margin 26.8% (avg: 25%), ROE 2.9% (avg: 12%), current ratio N/A (avg: 1.2).