Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Ames National Corporation (ATLO)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$29.20 - $57.49$40.35
Multi-Stage$45.71 - $50.18$47.90
Blended Fair Value$44.12
Current Price$20.22
Upside118.22%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.67%3.37%1.021.091.081.051.020.981.210.910.870.81
YoY Growth---6.49%0.38%3.05%3.49%3.27%-18.66%33.33%4.82%6.41%11.43%
Dividend Yield--5.81%5.55%5.21%4.23%3.97%4.81%4.38%3.30%2.83%3.29%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)16.03
(-) Cash Dividends Paid (M)7.79
(=) Cash Retained (M)8.24
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.212.001.20
Cash Retained (M)8.248.248.24
(-) Cash Required (M)-3.21-2.00-1.20
(=) Excess Retained (M)5.036.237.04
(/) Shares Outstanding (M)8.938.938.93
(=) Excess Retained per Share0.560.700.79
LTM Dividend per Share0.870.870.87
(+) Excess Retained per Share0.560.700.79
(=) Adjusted Dividend1.441.571.66
WACC / Discount Rate6.36%6.36%6.36%
Growth Rate1.37%2.37%3.37%
Fair Value$29.20$40.35$57.49
Upside / Downside44.43%99.55%184.34%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)16.0316.4116.8017.1917.6018.0218.56
Payout Ratio48.60%56.88%65.16%73.44%81.72%90.00%92.50%
Projected Dividends (M)7.799.3310.9412.6314.3816.2217.17

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.36%6.36%6.36%
Growth Rate1.37%2.37%3.37%
Year 1 PV (M)8.698.778.86
Year 2 PV (M)9.499.679.86
Year 3 PV (M)10.1910.4910.81
Year 4 PV (M)10.8111.2411.69
Year 5 PV (M)11.3411.9212.51
PV of Terminal Value (M)357.46375.44394.14
Equity Value (M)407.97427.54447.86
Shares Outstanding (M)8.938.938.93
Fair Value$45.71$47.90$50.18
Upside / Downside126.06%136.90%148.16%

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