Fact based stock research
National Bankshares (NasdaqCM:NKSH)

US6348651091

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

National Bankshares stock research in summary

nationalbankshares.com

ANALYSIS: With an Obermatt Combined Rank of 19 (worse than 81% compared with investment alternatives), National Bankshares (Regional Banks, USA) shares have lower financial characteristics compared with similar stocks. Shares of National Bankshares are low in value (priced high) with a consolidated Value Rank of 39 (worse than 61% of alternatives), show below-average growth (Growth Rank of 33), and are riskily financed (Safety Rank of 41), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 19, is a sell recommendation based on National Bankshares's financial characteristics. As the company National Bankshares's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 39), low growth (Obermatt Growth Rank of 33), and risky financing practices (Obermatt Safety Rank of 41), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	39
Growth Rank	33
Safety Rank	41
Combined Rank	19

Country	USA
Industry	Regional Banks
Index	Dividends USA, Sound Pay USA, NASDAQ
Size class	X-Small

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

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Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: National Bankshares

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	57	16	39
GROWTH
GROWTH	30	30	42	33
SAFETY
SAFETY	33	95	77	41
SENTIMENT
SENTIMENT	n/a	66	30	^new
360° VIEW
360° VIEW	n/a	81	18	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better National Bankshares is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	57	16	39
GROWTH
GROWTH	30	30	42	33
SAFETY
SAFETY	33	95	77	41
COMBINED
COMBINED	33	82	32	19

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of National Bankshares the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 39 (worse than 61% compared with alternatives), National Bankshares shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for National Bankshares. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 95% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 17 which means that the stock price compared with what market professionals expect for future profits is higher than 83% of comparable companies, indicating a low value concerning National Bankshares's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 31 which means that the stock price compared with what market professionals expect for future profit levels is higher than 69% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 49 is also low. Compared with invested capital, the stock price is higher than for 51% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 39, is a hold recommendation based on National Bankshares's stock price compared with the company's operational size and dividend yields. Should dividend investors pick National Bankshares? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose National Bankshares only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	31	32	19	17
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	59	54	11	31
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	67	60	3	49
DIVIDEND YIELD
DIVIDEND YIELD	82	85	80	95
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	69	57	16	39

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of National Bankshares; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 33 (better than 33% compared with alternatives), National Bankshares shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for National Bankshares. Sales Growth has a rank of 85 which means that currently, professionals expect the company to grow more than 85% of its competitors. Capital Growth is also above 8% of competitors with a rank of 75. But Profit Growth only has a rank of 8, which means that currently professionals expect the company to grow its profits less than 92% of its competitors. And Stock Returns have also been below average with a rank of only 3. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 33, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	27	28	75	85
PROFIT GROWTH
PROFIT GROWTH	22	44	79	8
CAPITAL GROWTH
CAPITAL GROWTH	n/a	62	3	75
STOCK RETURNS
STOCK RETURNS	29	19	31	3
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	30	30	42	33

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of National Bankshares.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 41 (better than 41% compared with alternatives), the company National Bankshares has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of National Bankshares is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for National Bankshares and the other two below average. Leverage is at a rank of 82 meaning the company has a below-average debt-to-equity ratio. It has less debt than 82% of its competitors.Refinancing is at a rank of 14, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 86% of its competitors. Liquidity is at a rank of 45, meaning that the company generates less profit to service its debt than 55% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 41 (worse than 59% compared with alternatives), National Bankshares has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of National Bankshares are on the safer side. Investors may have a short-term debt challenge and liquidity issues with National Bankshares and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	71	66	82	82
REFINANCING
REFINANCING	12	100	8	14
LIQUIDITY
LIQUIDITY	25	41	89	45
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	33	95	77	41

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of National Bankshares and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	72	34	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	88	47	^new
MARKET PULSE
MARKET PULSE	n/a	6	39	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	66	30	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for National Bankshares.
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