Ames National Corp. Adjusts Valuation Grade Amid Mixed Financial Indicators and Challenges

Ames National Corp., a microcap player in the regional banking sector, has recently undergone an evaluation adjustment that reflects a shift in its valuation grade. The stock's valuation has transitioned from fair to attractive, indicating a more favorable assessment of its financial metrics.
Key financial indicators for Ames National Corp. include a P/E ratio of 14, which positions it competitively within its industry. The company also reports a price-to-book value of 0.87, suggesting that its market valuation is below its book value. Additionally, the enterprise value to EBITDA ratio stands at 4.92, while the EV to EBIT ratio is recorded at 5.60. These metrics provide insight into the company's operational efficiency and profitability.

Ames National Corp. boasts a dividend yield of 4.90%, which may appeal to income-focused investors. The return on capital employed (ROCE) is noted at 13.24%, and the return on equity (ROE) is at 6.20%, reflecting its ability to generate returns on investments and equity.

Despite these positive indicators, the company faces challenges with a long-term fundamental strength characterized by a -3.47% CAGR growth in net profits and a low provision coverage ratio, which suggests potential concerns regarding its reserves for non-performing loans.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.