(ALRS) Alerus Financial - Overview
Sector: Financial Services | Industry: Banks - Regional | Exchange: NASDAQ (USA) | Market Cap: 680m USD | Total Return: 38.8% in 12m
Avg Turnover: 4.28M
EPS Trend: 60.1%
Qual. Beats: 2
Rev. Trend: 85.4%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Alerus Financial Corporation (ALRS) is a diversified financial services holding company headquartered in Grand Forks, North Dakota. Established in 1879, the firm operates through three primary segments: Banking, Retirement and Benefit Services, and Wealth Management. Its portfolio includes traditional commercial and consumer banking, treasury management, mortgage lending, and fiduciary services.
The company utilizes a fee-based revenue model in its retirement and wealth segments to complement traditional net interest income from its banking operations. This diversification helps mitigate the impact of interest rate volatility, a common risk factor within the regional banking sector. Alerus specifically targets business clients through integrated employee benefit administration and payroll services, creating higher customer retention through bundled institutional offerings.
Further analysis of the companys valuation metrics on ValueRay may provide deeper insight into its long-term growth trajectory.
- Fee-based revenue growth from retirement and benefit services diversification
- Net interest margin sensitivity to Federal Reserve interest rate fluctuations
- Commercial and industrial loan portfolio quality amidst regional economic shifts
- Strategic acquisitions within the wealth management and retirement sectors
- Operational efficiency improvements through digital banking and treasury management scaling
| Net Income: 27.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 1.42 > 1.0 |
| NWC/Revenue: -15.35% < 20% (prev -1.14k%; Δ 1.12k% < -1%) |
| CFO/TA 0.02 > 3% & CFO 87.6m > Net Income 27.1m |
| Net Debt (215.6m) to EBITDA (54.5m): 3.95 < 3 |
| Current Ratio: 0.75 > 1.5 & < 3 |
| Outstanding Shares: last quarter (25.4m) vs 12m ago -0.99% < -2% |
| Gross Margin: 70.65% > 18% (prev 0.62%; Δ 7.00k% > 0.5%) |
| Asset Turnover: 6.22% > 50% (prev 6.59%; Δ -0.37% > 0%) |
| Interest Coverage Ratio: 0.35 > 6 (EBITDA TTM 54.5m / Interest Expense TTM 102.2m) |
| A: -0.01 (Total Current Assets 149.3m - Total Current Liabilities 200.0m) / Total Assets 5.29b |
| B: 0.05 (Retained Earnings 287.7m / Total Assets 5.29b) |
| C: 0.01 (EBIT TTM 35.3m / Avg Total Assets 5.31b) |
| D: 0.07 (Book Value of Equity 308.7m / Total Liabilities 4.71b) |
| Altman-Z'' = 0.23 = B |
| DSRI: 1.06 (Receivables 20.5m/20.5m, Revenue 330.4m/351.8m) |
| GMI: 0.88 (GM 70.65% / 61.98%) |
| AQI: 1.11 (AQ_t 0.96 / AQ_t-1 0.86) |
| SGI: 0.94 (Revenue 330.4m / 351.8m) |
| TATA: -0.01 (NI 27.1m - CFO 87.6m) / TA 5.29b) |
| Beneish M = -3.08 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 28.05 with a total of 124,974 shares traded.
Over the past week, the price has changed by +5.65%,
over one month by +9.96%,
over three months by +15.66% and
over the past year by +38.81%.
Alerus Financial has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold ALRS.
- StrongBuy: 1
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 28 | -0.2% |
P/S = 2.8748
P/B = 1.1618
Revenue TTM = 330.4m USD
EBIT TTM = 35.3m USD
EBITDA TTM = 54.5m USD
Long Term Debt = 59.2m USD (from longTermDebt, last quarter)
Short Term Debt = 200.0m USD (from shortTermDebt, last quarter)
Debt = 344.4m USD (from shortLongTermDebtTotal, last quarter) + Leases 42.6m
Net Debt = 215.6m USD (calculated: Debt 344.4m - CCE 128.8m)
Enterprise Value = 895.5m USD (680.0m + Debt 344.4m - CCE 128.8m)
Interest Coverage Ratio = 0.35 (Ebit TTM 35.3m / Interest Expense TTM 102.2m)
EV/FCF = 10.34x (Enterprise Value 895.5m / FCF TTM 86.6m)
FCF Yield = 9.67% (FCF TTM 86.6m / Enterprise Value 895.5m)
FCF Margin = 26.21% (FCF TTM 86.6m / Revenue TTM 330.4m)
Net Margin = 8.20% (Net Income TTM 27.1m / Revenue TTM 330.4m)
Gross Margin = 70.65% ((Revenue TTM 330.4m - Cost of Revenue TTM 97.0m) / Revenue TTM)
Gross Margin QoQ = 82.44% (prev 22.85%)
Tobins Q-Ratio = 0.17 (Enterprise Value 895.5m / Total Assets 5.29b)
Interest Expense / Debt = 29.67% (Interest Expense 102.2m / Debt 344.4m)
Taxrate = 24.06% (7.28m / 30.2m)
NOPAT = 26.8m (EBIT 35.3m * (1 - 24.06%))
Current Ratio = 0.75 (Total Current Assets 149.3m / Total Current Liabilities 200.0m)
Debt / Equity = 0.60 (Debt 344.4m / totalStockholderEquity, last quarter 574.7m)
Debt / EBITDA = 3.95 (Net Debt 215.6m / EBITDA 54.5m)
Debt / FCF = 2.49 (Net Debt 215.6m / FCF TTM 86.6m)
Total Stockholder Equity = 555.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.51% (Net Income 27.1m / Total Assets 5.29b)
RoE = 4.87% (Net Income TTM 27.1m / Total Stockholder Equity 555.9m)
RoCE = 5.74% (EBIT 35.3m / Capital Employed (Equity 555.9m + L.T.Debt 59.2m))
RoIC = 0.51% (NOPAT 26.8m / Invested Capital 5.24b)
WACC = 13.78% (E(680.0m)/V(1.02b) * Re(9.35%) + D(344.4m)/V(1.02b) * Rd(29.67%) * (1-Tc(0.24)))
Discount Rate = 9.35% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 65.93 | Cagr: 11.21%
[DCF] Terminal Value 62.45% ; FCFF base≈56.5m ; Y1≈64.8m ; Y5≈95.4m
[DCF] Fair Price = 20.38 (EV 727.6m - Net Debt 215.6m = Equity 512.1m / Shares 25.1m; r=13.78% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 60.06 | EPS CAGR: 22.45% | SUE: 2.15 | # QB: 2
Revenue Correlation: 85.41 | Revenue CAGR: 17.47% | SUE: 0.71 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.68 | Chg30d=+5.80% | Revisions=+33% | Analysts=4
EPS next Quarter (2026-09-30): EPS=0.67 | Chg30d=-1.39% | Revisions=-20% | Analysts=4
EPS current Year (2026-12-31): EPS=2.91 | Chg30d=+11.58% | Revisions=+33% | GrowthEPS=+4.7% | GrowthRev=+4.4%
EPS next Year (2027-12-31): EPS=2.77 | Chg30d=+0.45% | Revisions=+0% | GrowthEPS=-4.7% | GrowthRev=+3.4%
[Analyst] Revisions Ratio: +33%