Alerus Financial Corporation
Alerus Financial Corporation Fundamental Analysis
Alerus Financial Corporation (ALRS) shows weak financial fundamentals with a PE ratio of 34.62, profit margin of 5.32%, and ROE of 3.23%. The company generates $0.3B in annual revenue with strong year-over-year growth of 35.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ALRS's fundamental strength across five key dimensions:
Efficiency Score
WeakALRS struggles to generate sufficient returns from assets.
Valuation Score
ModerateALRS shows balanced valuation metrics.
Growth Score
ExcellentALRS delivers strong and consistent growth momentum.
Financial Health Score
ModerateALRS shows balanced financial health with some risks.
Profitability Score
WeakALRS struggles to sustain strong margins.
Key Financial Metrics
Is ALRS Expensive or Cheap?
P/E Ratio
ALRS trades at 34.62 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALRS's PEG of -0.52 indicates potential undervaluation.
Price to Book
The market values Alerus Financial Corporation at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.78 times EBITDA. This is generally considered low.
How Well Does ALRS Make Money?
Net Profit Margin
For every $100 in sales, Alerus Financial Corporation keeps $5.32 as profit after all expenses.
Operating Margin
Core operations generate 6.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.23 in profit for every $100 of shareholder equity.
ROA
Alerus Financial Corporation generates $0.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alerus Financial Corporation produces operating cash flow of $74.32M, showing steady but balanced cash generation.
Free Cash Flow
Alerus Financial Corporation generates strong free cash flow of $73.27M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.88 in free cash annually.
FCF Yield
ALRS converts 12.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How ALRS Stacks Against Its Sector Peers
| Metric | ALRS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.62 | 18.59 | Worse (Expensive) |
| ROE | 3.23% | 801.00% | Weak |
| Net Margin | 5.32% | -498.00% (disorted) | Weak |
| Debt/Equity | 0.78 | 0.98 | Strong (Low Leverage) |
| Current Ratio | 0.29 | 661.40 | Weak Liquidity |
| ROA | 0.33% | -21324.00% (disorted) | Weak |
ALRS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alerus Financial Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.04%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-57.95%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
5.34%
Industry Style: Value, Dividend, Cyclical
Growing