Alerus Financial (ALRS) AI Stock Analysis

• Market Cap: $550.85M
• Dividend Yield: 3.88%
• Average Volume (3M): 86.42K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.07
• Revenue Growth: 42.10%
• EPS Growth: 1211.45%
• Country: US
• Employees: 846
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.66
• Shares Outstanding: 25,396,307
• 10 Day Avg. Volume: 80,477
• 30 Day Avg. Volume: 86,419
• PEG Ratio: 0.54
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 24.41
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 12.64
• 1Y Price Target: $24.75
• Price Target Upside: 17.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $23.50 ▲(11.27% Upside)

Alerus Financial's overall stock score is driven by strong financial performance and attractive valuation metrics. The company's robust cash flow generation and revenue growth are significant strengths. However, technical analysis indicates some short-term bearish trends, and the earnings call highlighted challenges such as increased nonperforming assets. Despite these challenges, the company's strategic focus on growth and risk management supports a positive outlook.

Alerus Financial Business Overview & Revenue Model

Company Description

Alerus Financial Corporation (ALRS) is a diversified financial services company headquartered in Grand Forks, North Dakota. The company operates primarily in the banking, wealth management, and mortgage sectors, providing a comprehensive suite of financial solutions to individuals and businesses. Alerus offers products such as personal and commercial banking services, investment management, retirement planning, and mortgage lending, aiming to enhance the financial well-being of its clients through tailored services and innovative financial solutions.

How the Company Makes Money

Alerus Financial generates revenue through multiple key streams. Primarily, the company earns income from interest on loans made to customers, which includes personal, commercial, and mortgage loans. Additionally, Alerus collects fees for various banking services, such as account maintenance and transaction fees. The wealth management segment contributes to revenue through advisory fees on assets under management and commissions from investment products. Mortgage origination fees and interest income from mortgage loans also serve as significant revenue sources. Furthermore, Alerus has established partnerships and collaborations that may enhance its service offerings and expand its client base, thereby contributing to its overall earnings.

Alerus Financial Financial Statement Overview

Summary

Alerus Financial exhibits strong financial performance with notable improvements in revenue growth and cash flow generation. The company has managed to enhance its profitability and leverage ratios, though there is still room for improvement in net profit margins. Overall, the financial health is robust, but attention should be paid to maintaining stability in cash flows and managing debt levels effectively.

Income Statement

Alerus Financial shows a strong revenue growth rate of 6.06% in the TTM, with improving gross profit and net profit margins. The EBIT and EBITDA margins have also improved significantly over the past year, indicating enhanced operational efficiency. However, the net profit margin is relatively modest, suggesting room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.70 in the TTM, indicating better leverage management compared to previous years. Return on equity has increased to 8.03%, reflecting improved profitability. However, the equity ratio remains stable, suggesting a balanced asset structure but with potential risks if debt levels increase again.

Cash Flow

Alerus Financial has demonstrated a remarkable free cash flow growth rate of 196.66% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, and the free cash flow to net income ratio is strong at 72.29%, highlighting efficient cash management. However, previous periods showed volatility in cash flow, which could pose risks if not managed well.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	373.08M	330.41M	243.16M	224.58M	235.79M	239.77M
Gross Profit	245.46M	197.73M	164.06M	208.77M	233.74M	216.61M
EBITDA	68.61M	38.04M	24.36M	60.42M	77.89M	67.44M
Net Income	41.97M	17.74M	11.70M	40.01M	52.68M	44.67M
Balance Sheet
Total Assets	5.32B	5.26B	3.91B	3.78B	3.39B	3.01B
Cash, Cash Equivalents and Short-Term Investments	80.90M	649.29M	616.63M	775.57M	1.10B	765.30M
Total Debt	373.73M	317.02M	378.88M	442.82M	63.21M	66.60M
Total Liabilities	4.79B	4.77B	3.54B	3.42B	3.03B	2.68B
Stockholders Equity	533.15M	495.41M	369.13M	356.87M	359.40M	330.16M
Cash Flow
Free Cash Flow	33.88M	16.59M	25.71M	101.18M	147.41M	-26.06M
Operating Cash Flow	46.87M	28.96M	28.98M	102.97M	149.83M	-22.25M
Investing Cash Flow	-224.52M	-330.03M	-51.99M	-292.62M	-417.66M	-538.39M
Financing Cash Flow	-179.59M	232.42M	94.76M	5.59M	337.18M	589.60M

Alerus Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALRS, the sentiment is Negative. The current price of 21.12 is below the 20-day moving average (MA) of 21.41, below the 50-day MA of 21.99, and above the 200-day MA of 20.56, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 36.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALRS.

Alerus Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALRS	―	$550.85M	12.90	11.40%	3.88%	42.10%	1211.45%
HIFS	―	$641.56M	14.33	10.23%	0.86%	8.26%	94.53%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHBI	―	$521.65M	9.16	10.25%	3.07%	6.01%	38.05%
MOFG	―	$763.21M	13.17	10.01%	2.67%	89.01%	―
HONE	―	$522.22M	18.68	4.56%	2.89%	5.00%	72.45%
WASH	―	$521.79M	―	-4.73%	8.22%	-27.77%	-159.63%

Alerus Financial Corporate Events

Alerus Financial Reports Q3 2025 Earnings

On October 30, 2025, Alerus Financial Corporation reported a net income of $16.9 million for the third quarter of 2025, a decrease from $20.3 million in the previous quarter but an increase from $5.2 million in the same quarter of 2024. The company achieved a record net interest income of $43.1 million and maintained a strong return on average total assets. Alerus continues to see growth in loans, deposits, and assets under management, driven by strategic acquisitions and enhancements in its commercial wealth bank. The company’s focus on disciplined execution and client expansion aims to deliver superior returns and shareholder value despite potential economic uncertainties.

The most recent analyst rating on (ALRS) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Alerus Financial stock, see the ALRS Stock Forecast page.

Alerus Financial Declares Increased Quarterly Dividend

On August 28, 2025, Alerus Financial Corporation announced that its board of directors declared a regular quarterly cash dividend of $0.21 per common share, marking a 5% increase from the previous year. The dividend is scheduled to be paid on October 10, 2025, to stockholders of record as of September 26, 2025, reflecting the company’s ongoing commitment to providing value to its shareholders.

The most recent analyst rating on (ALRS) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Alerus Financial stock, see the ALRS Stock Forecast page.