National Bankshares, Inc. (NKSH) | Investment Case

1. Company Snapshot

1.a. Company Description

National Bankshares, Inc.operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking products and services to individuals, businesses, non-profits, and local governments.The company accepts interest-bearing and non-interest bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit, health savings accounts, and individual retirement accounts.

Its loan products include commercial and agricultural, commercial real estate, residential real estate, home equity, and various consumer loan products, as well as loans for the construction of commercial and residential properties.The company also provides business and consumer debit and credit cards; letters of credit, night depository services, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services; non-deposit investment and insurance products; and telephone, mobile, and Internet banking services.It operates 23 branch offices, a loan production office, and 22 automated teller machines in Southwest Virginia.

National Bankshares, Inc.was founded in 1891 and is headquartered in Blacksburg, Virginia.

Show Full description

1.b. Last Insights on NKSH

National Bankshares' recent performance was positively influenced by a significant year-over-year improvement in quarterly earnings, with a profit of $0.61 per share, compared to a loss of $0.05 per share in the same period last year. The company's earnings, however, fell short of expectations, coming in at $0.61 per share versus the estimated $0.64 per share. According to Zacks, this earnings miss may temper investor enthusiasm. A share buyback program could potentially boost shareholder value.

1.c. Company Highlights

Last Price	29.79
Change Percentage	-1.46%
Open	30.57
Previous Close	30.23
Market Cap ( Millions)	189
Volume	3334
Year High	32.03
Year Low	23.75
M A 50	29.24
M A 200	28.05

FCF Yield	5.14%
Dividend Yield	5.07%
ROE	7.76%
Debt / Equity	0.00%
Net Debt / EBIDTA	-55.17%
Price To Book	1.06
Price Earnings Ratio	14.55
Price To FCF	19.44
Price To sales	2.48
EV / EBITDA	10.82

2. Transcript Summary

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3. NewsRoom

National Bankshares, Inc. $NKSH Stock Holdings Lowered by Brandes Investment Partners LP

Dec -03

Source: defenseworld.net

Market Today: Alphabet rallies, Amazon's $50B AI push

Nov -24

Source: gurufocus.com

First Look: BHP ends Anglo bid, Novo miss, Black Friday

Nov -24

Source: gurufocus.com

National Bankshares (NKSH) Q3 Earnings and Revenues Surpass Estimates

Oct -23

Source: zacks.com

National Bankshares (NKSH) Misses Q2 Earnings and Revenue Estimates

Aug -13

Source: zacks.com

National Bankshares (NKSH) Q4 Earnings Match Estimates

Jan -24

Source: zacks.com

Lara Ramsey Named President of National Bankshares, Inc. and The National Bank of Blacksburg

Oct -18

Source: globenewswire.com

National Bankshares (NKSH) Reports Q2 Loss, Lags Revenue Estimates

Aug -14

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Banking and Related Activities

Expected Growth: 7.0%

National Bankshares, Inc.'s 7.0% growth in Banking and Related Activities is driven by increasing loan demand, expansion of digital banking channels, and strategic acquisitions. Additionally, a favorable interest rate environment, cost savings initiatives, and a strong capital position have contributed to the segment's growth.

7. Detailed Products

Personal Banking

National Bankshares, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

The company provides business banking services, including commercial loans, cash management, and treasury management solutions, to help businesses grow and succeed.

Mortgage Lending

National Bankshares, Inc. offers a variety of mortgage loan options, including fixed-rate and adjustable-rate mortgages, to help individuals and families achieve homeownership.

Wealth Management

The company provides wealth management services, including investment management, trust services, and financial planning, to help individuals and families achieve their long-term financial goals.

Insurance Services

National Bankshares, Inc. offers a range of insurance products, including life insurance, disability insurance, and long-term care insurance, to help individuals and families protect their financial well-being.

8. National Bankshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for National Bankshares, Inc. is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers for National Bankshares, Inc. is low due to the lack of concentration of customers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for National Bankshares, Inc. is medium due to the presence of multiple suppliers of technology and services.

Threat Of New Entrants

The threat of new entrants for National Bankshares, Inc. is low due to the high barriers to entry in the banking industry, including regulatory requirements and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for National Bankshares, Inc. is high due to the presence of multiple competitors in the banking industry, including large national banks and regional banks.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.25%
Debt Cost	6.63%
Equity Weight	99.75%
Equity Cost	6.63%
WACC	6.63%
Leverage	0.25%

11. Quality Control: National Bankshares, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Five Star Bank

A-Score: 6.3/10

Value: 5.9

Growth: 5.4

Quality: 7.8

Yield: 5.0

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

WaFed

A-Score: 6.0/10

Value: 5.9

Growth: 6.8

Quality: 5.6

Yield: 7.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

Southern Missouri Bancorp

A-Score: 5.9/10

Value: 7.6

Growth: 6.7

Quality: 7.0

Yield: 4.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

Coastal Financial

A-Score: 5.7/10

Value: 3.2

Growth: 9.6

Quality: 6.6

Yield: 0.0

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

National Bankshares

A-Score: 5.6/10

Value: 5.5

Growth: 3.3

Quality: 5.0

Yield: 8.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

Finward

A-Score: 5.1/10

Value: 5.2

Growth: 3.6

Quality: 3.8

Yield: 4.0

Momentum: 5.5

Volatility: 8.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-0.97%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.63%

National Bankshares, Inc. - US6348651091

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NKSH

1.c. Company Highlights

Higher Yield

Average Quality

Medium Volatility

Earnings Miss

Revenues Beats

Average Yield

Fairly Valued

Expensive

Earnings Beats

Weak Momentum

Lower Growth

Average Growth

Lower Quality

Stable Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Banking and Related Activities

Expected Growth: 7.0%

7. Detailed Products

Personal Banking

Business Banking

Mortgage Lending

Wealth Management

Insurance Services

8. National Bankshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: National Bankshares, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.79$

Current Price

29.79$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA