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Alerus Financial (ALRS) shares jump 2.8% to trade at 28.84

2020 2021 2022 2023 2024 2025
Revenue (k) $96,102 $92,657 $115,577 $164,883 $221,579 $279,636
Interest Income (k) $83,846 $87,099 $99,729 $87,839 $107,045 $172,499
Operating Margins 61% 75% 45% 10% 10% 8%
Net Margins 46% 56% 35% 7% 8% 6%
Net Income (k) $44,675 $52,681 $40,005 $11,696 $17,780 $17,439
Depreciation & Amort. (k) $3,900 $3,600 $3,000 $2,500 $3,000 $4,700
Diluted Shares (k) 17,438 17,486 18,884 20,143 21,321 25,697
Earnings Per Share $2.52 $2.97 $2.1 $0.58 $0.83 $0.68
EPS Growth n/a 17.86% -29.29% -72.38% 43.1% -18.07%
Avg. Price $18.9 $28.3 $25.75 $22.39 $19.1 $28.21
P/E Ratio 7.35 9.37 12.15 37.95 22.74 40.88
Free Cash Flow (k) -$26,063 $148,126 $101,177 $23,746 $9,376 $58,831
CAPEX (k) $3,811 $1,706 $1,789 $3,073 $12,370 $8,699
EV / EBITDA 3.35 4.15 8.07 20.6 14.33 25.92
Total Debt (k) $58,735 $58,933 $58,843 $58,956 $59,069 $59,182
Net Debt / EBITDA -1.83 -2.52 0.01 -3.86 -0.08 -0.29

Alerus Financial Corporation is a company that might be overvalued, meaning that its stock price may not accurately reflect its true value. The PEG ratio of 4.04 suggests that the market is likely overestimating the company's growth potential. Additionally, Alerus Financial's earnings per share have been declining by an average of -19.6% annually over the past 6 years. This indicates that the company's profitability has been decreasing.

Alerus Financial's net margins of 6.24% are significantly lower than the industry average of 22.36%, indicating that the company may not be as efficient in generating profits compared to its peers.

On a positive note, Alerus Financial has shown strong revenue growth, with current revenues of $279.64 million and an annualized growth rate of 24.3%. The company is also investing significantly in its operations, with capital expenditures increasing at a rate of 17.9%, which could potentially lead to future growth.

Alerus Financial has low leverage levels, as indicated by its Net Debt/EBITDA ratio of -0.29. This suggests that the company has a strong financial position and is not heavily reliant on debt to finance its operations. The company also has a consistent dividend track record over the last 9 years, with a current yield of 3.0%. Furthermore, Alerus Financial's Price to Book Ratio of 1.27 is lower than the sector average of 1.78, indicating that the stock may be undervalued based on its book value.

However, Alerus Financial's P/E ratio of 27.5 is higher than the Finance sector average of 15.92, which suggests that the stock may be overvalued based on its current earnings. On the other hand, the expected earnings per share of $2.77 indicate a lower forward P/E ratio of 10.4, which might make the stock more attractive from a future earnings perspective.

Furthermore, the company's free cash flows have averaged $52.53 million over the last 5 years, with a compounded average growth rate of -0.7%. This indicates that the company may be experiencing some challenges in generating consistent cash flows.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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