Logo image of MBWM

MERCANTILE BANK CORP (MBWM) Stock Fundamental Analysis

NASDAQ:MBWM - Nasdaq - US5873761044 - Common Stock - Currency: USD

44.44  -1.25 (-2.74%)

After market: 44.44 0 (0%)

Fundamental Rating

4

Taking everything into account, MBWM scores 4 out of 10 in our fundamental rating. MBWM was compared to 393 industry peers in the Banks industry. While MBWM is still in line with the averages on profitability rating, there are concerns on its financial health. MBWM has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

5

1. Profitability

1.1 Basic Checks

MBWM had positive earnings in the past year.
MBWM had a positive operating cash flow in the past year.
Each year in the past 5 years MBWM has been profitable.
MBWM had a positive operating cash flow in each of the past 5 years.
MBWM Yearly Net Income VS EBIT VS OCF VS FCFMBWM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

1.2 Ratios

MBWM has a Return On Assets of 1.26%. This is amongst the best in the industry. MBWM outperforms 82.19% of its industry peers.
MBWM has a Return On Equity of 12.75%. This is amongst the best in the industry. MBWM outperforms 86.51% of its industry peers.
Industry RankSector Rank
ROA 1.26%
ROE 12.75%
ROIC N/A
ROA(3y)1.37%
ROA(5y)1.24%
ROE(3y)14.4%
ROE(5y)13.22%
ROIC(3y)N/A
ROIC(5y)N/A
MBWM Yearly ROA, ROE, ROICMBWM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

MBWM's Profit Margin of 33.65% is amongst the best of the industry. MBWM outperforms 90.08% of its industry peers.
In the last couple of years the Profit Margin of MBWM has remained more or less at the same level.
MBWM does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 33.65%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y1.67%
PM growth 5Y1.03%
GM growth 3YN/A
GM growth 5YN/A
MBWM Yearly Profit, Operating, Gross MarginsMBWM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

More info and screens

1

2. Health

2.1 Basic Checks

MBWM does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MBWM has about the same amount of shares outstanding.
MBWM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MBWM has an improved debt to assets ratio.
MBWM Yearly Shares OutstandingMBWM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
MBWM Yearly Total Debt VS Total AssetsMBWM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

The Debt to FCF ratio of MBWM is 7.75, which is on the high side as it means it would take MBWM, 7.75 years of fcf income to pay off all of its debts.
MBWM has a Debt to FCF ratio of 7.75. This is in the lower half of the industry: MBWM underperforms 76.08% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that MBWM is somewhat dependend on debt financing.
MBWM's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. MBWM is outperformed by 80.41% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 7.75
Altman-Z N/A
ROIC/WACCN/A
WACC12.44%
MBWM Yearly LT Debt VS Equity VS FCFMBWM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
MBWM Yearly Current Assets VS Current LiabilitesMBWM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

More info and screens

4

3. Growth

3.1 Past

MBWM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.40%.
MBWM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.29% yearly.
MBWM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.56%.
The Revenue has been growing by 8.85% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.4%
EPS 3Y9.21%
EPS 5Y11.29%
EPS Q2Q%18.8%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y8.68%
Revenue growth 5Y8.85%
Sales Q2Q%7.38%

3.2 Future

The Earnings Per Share is expected to grow by 1.89% on average over the next years.
MBWM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.63% yearly.
EPS Next Y1.32%
EPS Next 2Y1.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.49%
Revenue Next 2Y8.66%
Revenue Next 3Y6.63%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MBWM Yearly Revenue VS EstimatesMBWM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M 200M 250M
MBWM Yearly EPS VS EstimatesMBWM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

More info and screens

4

4. Valuation

4.1 Price/Earnings Ratio

MBWM is valuated reasonably with a Price/Earnings ratio of 8.82.
Based on the Price/Earnings ratio, MBWM is valued cheaper than 86.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. MBWM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.65, the valuation of MBWM can be described as very reasonable.
MBWM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MBWM is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. MBWM is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 8.82
Fwd PE 8.65
MBWM Price Earnings VS Forward Price EarningsMBWM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of MBWM indicates a slightly more expensive valuation: MBWM is more expensive than 60.31% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.64
EV/EBITDA N/A
MBWM Per share dataMBWM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MBWM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)6.68
PEG (5Y)0.78
EPS Next 2Y1.89%
EPS Next 3YN/A

More info and screens

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.21%, MBWM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.40, MBWM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, MBWM pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.21%

5.2 History

The dividend of MBWM is nicely growing with an annual growth rate of 6.02%!
MBWM has paid a dividend for at least 10 years, which is a reliable track record.
MBWM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.02%
Div Incr Years12
Div Non Decr Years12
MBWM Yearly Dividends per shareMBWM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1

5.3 Sustainability

MBWM pays out 29.45% of its income as dividend. This is a sustainable payout ratio.
MBWM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.45%
EPS Next 2Y1.89%
EPS Next 3YN/A
MBWM Yearly Income VS Free CF VS DividendMBWM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
MBWM Dividend Payout.MBWM Dividend Payout, showing the Payout Ratio.MBWM Dividend Payout.PayoutRetained Earnings

More info and screens

MERCANTILE BANK CORP

NASDAQ:MBWM (8/1/2025, 4:30:01 PM)

After market: 44.44 0 (0%)

44.44

-1.25 (-2.74%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)07-22 2025-07-22/bmo
Earnings (Next)10-13 2025-10-13/bmo
Inst Owners65.57%
Inst Owner Change0%
Ins Owners2.75%
Ins Owner Change3.18%
Market Cap721.71M
Analysts76.36
Price Target50.11 (12.76%)
Short Float %0.71%
Short Ratio1.39
Dividend
Industry RankSector Rank
Dividend Yield 3.21%
Yearly Dividend1.39
Dividend Growth(5Y)6.02%
DP29.45%
Div Incr Years12
Div Non Decr Years12
Ex-Date09-05 2025-09-05 (0.38)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.31%
Min EPS beat(2)0.26%
Max EPS beat(2)4.35%
EPS beat(4)3
Avg EPS beat(4)1.49%
Min EPS beat(4)-0.69%
Max EPS beat(4)4.35%
EPS beat(8)6
Avg EPS beat(8)5.47%
EPS beat(12)9
Avg EPS beat(12)5.29%
EPS beat(16)12
Avg EPS beat(16)7.12%
Revenue beat(2)1
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-2.18%
Max Revenue beat(2)0.01%
Revenue beat(4)1
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-2.18%
Max Revenue beat(4)0.01%
Revenue beat(8)2
Avg Revenue beat(8)-1.77%
Revenue beat(12)5
Avg Revenue beat(12)-0.68%
Revenue beat(16)7
Avg Revenue beat(16)-0.01%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.7%
EPS NY rev (1m)0%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 8.82
Fwd PE 8.65
P/S 3.13
P/FCF 14.64
P/OCF 12.46
P/B 1.19
P/tB 1.29
EV/EBITDA N/A
EPS(TTM)5.04
EY11.34%
EPS(NY)5.14
Fwd EY11.56%
FCF(TTM)3.04
FCFY6.83%
OCF(TTM)3.57
OCFY8.02%
SpS14.19
BVpS37.46
TBVpS34.41
PEG (NY)6.68
PEG (5Y)0.78
Profitability
Industry RankSector Rank
ROA 1.26%
ROE 12.75%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 33.65%
GM N/A
FCFM 21.39%
ROA(3y)1.37%
ROA(5y)1.24%
ROE(3y)14.4%
ROE(5y)13.22%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y1.67%
PM growth 5Y1.03%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 7.75
Debt/EBITDA N/A
Cap/Depr 91.76%
Cap/Sales 3.73%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 63.56%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score4
WACC12.44%
ROIC/WACCN/A
Cap/Depr(3y)54.21%
Cap/Depr(5y)59.85%
Cap/Sales(3y)2.74%
Cap/Sales(5y)3.34%
Profit Quality(3y)126.85%
Profit Quality(5y)109.22%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.4%
EPS 3Y9.21%
EPS 5Y11.29%
EPS Q2Q%18.8%
EPS Next Y1.32%
EPS Next 2Y1.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.56%
Revenue growth 3Y8.68%
Revenue growth 5Y8.85%
Sales Q2Q%7.38%
Revenue Next Year5.49%
Revenue Next 2Y8.66%
Revenue Next 3Y6.63%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-53%
FCF growth 3Y16.21%
FCF growth 5Y24.22%
OCF growth 1Y-47.41%
OCF growth 3Y16.11%
OCF growth 5Y17.68%