Alerus Financial Corporation (ALRS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-80.4%

$6.77

vs $34.63 price

Levered DCF

$38.73

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.22

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	32.64×	22.9×	37.95×	11.01×	9.7×	10.65×	11.66×	10.24×
P/B	1.01×	0.82×	1.21×	1.22×	1.4×	1.42×	1.18×	1.35×
P/S	1.74×	1.2×	1.83×	1.94×	2.13×	1.95×	1.65×	1.41×
EV / EBITDA	23.69×	17.37×	28.53×	13.57×	4.16×	5.36×	5.46×	9.02×
Gross margin	67.2%	60.8%	67.5%	93.0%	99.1%	90.3%	87.3%	88.8%
Operating margin	6.9%	6.8%	6.5%	23.2%	29.3%	24.4%	19.0%	17.5%
Net margin	5.3%	5.3%	4.8%	17.8%	22.3%	18.6%	14.4%	13.7%
Current ratio	0.29×	0.16×	0.2×	0.25×	0.38×	0.3×	0.24×	0.17×
Debt / equity	0.78×	0.64×	1.03×	1.24×	0.18×	0.2×	0.24×	0.77×
Interest coverage	0.21×	0.2×	0.21×	3.29×	12.43×	4.77×	2.07×	2.65×
Dividend yield	3.6%	3.8%	3.3%	2.9%	2.1%	2.2%	2.6%	2.8%
Payout ratio	119.4%	86.9%	126.7%	32.0%	20.4%	23.3%	30.2%	28.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	3.1%	3.6%	3.2%	11.2%	14.7%	13.5%	10.3%	13.1%
Return on invested capital	5.1%	2.0%	1.4%	5.0%	12.5%	11.3%	8.4%	6.9%
Return on assets	0.3%	0.3%	0.3%	1.1%	1.6%	1.5%	1.3%	1.2%
Free cash flow yield	10.3%	4.1%	5.8%	23.2%	29.4%	-5.6%	4.9%	18.8%
Earnings yield	3.1%	4.4%	2.6%	9.2%	10.5%	9.5%	8.8%	9.8%
Enterprise value	$944.9M	$660.7M	$695M	$819.8M	$324.2M	$361.8M	$260.3M	$376.6M
Net debt / EBITDA	9.36×	6.72×	10.22×	6.37×	-2.3×	-1.58×	-1.6×	2.67×
Cash conversion cycle (days)	24	61	86	78	50	36	37	42