MERCANTILE BANK CORP (MBWM)
US5873761044 - Common Stock
We assign a fundamental rating of 4 out of 10 to MBWM. MBWM was compared to 411 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MBWM was profitable.
In the past year MBWM had a positive cash flow from operations.
MBWM had positive earnings in each of the past 5 years.
MBWM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MBWM's Return On Assets of 1.54% is amongst the best of the industry. MBWM outperforms 89.78% of its industry peers.
MBWM has a better Return On Equity (15.75%) than 91.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 15.75% | ||
| ROIC | N/A |
ROA(3y)1.3%
ROA(5y)1.25%
ROE(3y)14.17%
ROE(5y)12.88%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MBWM's Profit Margin of 36.43% is amongst the best of the industry. MBWM outperforms 90.75% of its industry peers.
MBWM's Profit Margin has improved in the last couple of years.
MBWM does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 36.43% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y11.41%
PM growth 5Y3.83%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
MBWM does not have a ROIC to compare to the WACC, probably because it is not profitable.
MBWM has more shares outstanding than it did 1 year ago.
MBWM has less shares outstanding than it did 5 years ago.
MBWM has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MBWM is 6.15, which is on the high side as it means it would take MBWM, 6.15 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.15, MBWM is not doing good in the industry: 71.29% of the companies in the same industry are doing better.
MBWM has a Debt/Equity ratio of 0.71. This is a neutral value indicating MBWM is somewhat dependend on debt financing.
MBWM has a worse Debt to Equity ratio (0.71) than 78.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 6.15 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.12%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MBWM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.48%, which is quite good.
MBWM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.10% yearly.
Looking at the last year, MBWM shows a quite strong growth in Revenue. The Revenue has grown by 11.24% in the last year.
The Revenue has been growing by 10.16% on average over the past years. This is quite good.
EPS 1Y (TTM)16.48%
EPS 3Y25.42%
EPS 5Y15.1%
EPS growth Q2Q2.29%
Revenue 1Y (TTM)11.24%
Revenue growth 3Y10.47%
Revenue growth 5Y10.16%
Revenue growth Q2Q-9.51%
3.2 Future
MBWM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.21% yearly.
The Revenue is expected to grow by 0.76% on average over the next years.
EPS Next Y-8.42%
EPS Next 2Y-6.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.07%
Revenue Next 2Y0.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.73, the valuation of MBWM can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of MBWM indicates a rather cheap valuation: MBWM is cheaper than 82.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.15, MBWM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.84, the valuation of MBWM can be described as reasonable.
MBWM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MBWM is cheaper than 69.34% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.20. MBWM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 8.84 |
4.2 Price Multiples
MBWM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.73 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MBWM's earnings are expected to decrease with -6.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-6.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.54%, MBWM has a reasonable but not impressive dividend return.
MBWM's Dividend Yield is comparable with the industry average which is at 3.68.
MBWM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
5.2 History
The dividend of MBWM decreases each year by -4.68%.
MBWM has been paying a dividend for at least 10 years, so it has a reliable track record.
MBWM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-4.68%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
25.55% of the earnings are spent on dividend by MBWM. This is a low number and sustainable payout ratio.
MBWM's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP25.55%
EPS Next 2Y-6.21%
EPS Next 3YN/A
MERCANTILE BANK CORP
NASDAQ:MBWM (5/17/2024, 7:12:12 PM)
After market: 39.89 0 (0%)39.89
-0.07 (-0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap643.03M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 8.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 15.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 36.43% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)16.48%
EPS 3Y25.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.24%
Revenue growth 3Y10.47%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y