Mercantile Bank Corp. (MBWM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Heritage Commerce Corp.

Univest Financial Corp.

Mercantile Bank Corp.

Amalgamated Financial Corp.

Heritage Financial Corp. (Washington)

HBT Financial, Inc.

Capital City Bank Group, Inc.

Coastal Financial Corp. (Washington)

First Community Bancshares, Inc. (Virginia)

Premier Financial Corp.

Great Southern Bancorp, Inc. (Missouri)

Why is Mercantile Bank Corp. ?

High Profitability with a Net Interest Margin of 7.50%

Positive results in Mar 26

DIVIDEND PER SHARE(HY) Highest at USD 0
OPERATING PROFIT MARGIN(Q) Highest at 33.3 %
NII(Q) Highest at USD 55.9 MM

With ROA of 0.92%, it has a very attractive valuation with a 1.18 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 20.72%, its profits have risen by 13.5% ; the PEG ratio of the company is 0.7

High Institutional Holdings at 68.42%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mercantile Bank Corp. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Mercantile Bank Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Mercantile Bank Corp.

20.72%

1.86

26.22%

S&P 500

22.99%

1.78

12.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.36%

EBIT Growth (5y)

10.50%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

27.44%

Pledged Shares

Institutional Holding

68.42%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.18

EV to EBIT

10.75

EV to EBITDA

10.15

EV to Capital Employed

1.14

EV to Sales

3.24

PEG Ratio

0.74

Dividend Yield

ROCE (Latest)

10.55%

ROE (Latest)

12.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 0

OPERATING PROFIT MARGIN(Q)

Highest at 33.3 %

NII(Q)

Highest at USD 55.9 MM

OPERATING PROFIT(Q)

Highest at USD 28.45 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 49.26 MM

CREDIT DEPOSIT RATIO(HY)

Lowest at 88.88%

CASH AND EQV(HY)

Lowest at USD 103.19 MM

Here's what is working for Mercantile Bank Corp.

Operating Profit Margin

Highest at 33.3 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

NII

Highest at USD 55.9 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 28.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Depreciation

Highest at USD 1.7 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Mercantile Bank Corp.

Operating Cash Flow

Lowest at USD 49.26 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Credit Deposit Ratio

Lowest at 88.88% and Fallen

In each half year in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets

Credit Deposit Ratio (%)

Cash and Eqv

Lowest at USD 103.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents