MERCANTILE BANK CORP (MBWM) Fundamental Analysis & Valuation
NASDAQ:MBWM • US5873761044
Current stock price
51.96 USD
+0.65 (+1.27%)
At close:
51.96 USD
0 (0%)
After Hours:
This MBWM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. MBWM Profitability Analysis
1.1 Basic Checks
- In the past year MBWM was profitable.
- MBWM had a positive operating cash flow in the past year.
- MBWM had positive earnings in each of the past 5 years.
- Each year in the past 5 years MBWM had a positive operating cash flow.
1.2 Ratios
- MBWM's Return On Assets of 1.30% is fine compared to the rest of the industry. MBWM outperforms 79.26% of its industry peers.
- The Return On Equity of MBWM (12.24%) is better than 81.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 12.24% | ||
| ROIC | N/A |
ROA(3y)1.38%
ROA(5y)1.31%
ROE(3y)13.87%
ROE(5y)13.67%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- MBWM's Profit Margin of 36.58% is amongst the best of the industry. MBWM outperforms 92.02% of its industry peers.
- In the last couple of years the Profit Margin of MBWM has grown nicely.
- The Operating Margin and Gross Margin are not available for MBWM so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 36.58% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y4.44%
PM growth 5Y6.78%
GM growth 3YN/A
GM growth 5YN/A
2. MBWM Health Analysis
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 more shares outstanding
- MBWM has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for MBWM is higher compared to a year ago.
2.2 Solvency
- MBWM has a debt to FCF ratio of 35.95. This is a negative value and a sign of low solvency as MBWM would need 35.95 years to pay back of all of its debts.
- MBWM has a worse Debt to FCF ratio (35.95) than 85.90% of its industry peers.
- MBWM has a Debt/Equity ratio of 0.56. This is a neutral value indicating MBWM is somewhat dependend on debt financing.
- The Debt to Equity ratio of MBWM (0.56) is worse than 78.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 35.95 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.26%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. MBWM Growth Analysis
3.1 Past
- MBWM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.46%, which is quite good.
- Measured over the past years, MBWM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.00% on average per year.
- MBWM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.83%.
- MBWM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.71% yearly.
EPS 1Y (TTM)18.46%
EPS 3Y12.35%
EPS 5Y16%
EPS Q2Q%20.66%
Revenue 1Y (TTM)4.83%
Revenue growth 3Y8.44%
Revenue growth 5Y7.71%
Sales Q2Q%18.08%
3.2 Future
- The Earnings Per Share is expected to grow by 5.57% on average over the next years.
- MBWM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.15% yearly.
EPS Next Y4.62%
EPS Next 2Y5.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.91%
Revenue Next 2Y10.15%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. MBWM Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.10, the valuation of MBWM can be described as very reasonable.
- Based on the Price/Earnings ratio, MBWM is valued cheaper than 87.77% of the companies in the same industry.
- MBWM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.64.
- Based on the Price/Forward Earnings ratio of 8.54, the valuation of MBWM can be described as reasonable.
- Based on the Price/Forward Earnings ratio, MBWM is valued a bit cheaper than 77.93% of the companies in the same industry.
- MBWM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.1 | ||
| Fwd PE | 8.54 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, MBWM is valued expensively inside the industry as 85.37% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.06 | ||
| EV/EBITDA | N/A |
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)1.97
PEG (5Y)0.57
EPS Next 2Y5.57%
EPS Next 3YN/A
5. MBWM Dividend Analysis
5.1 Amount
- MBWM has a Yearly Dividend Yield of 3.04%. Purely for dividend investing, there may be better candidates out there.
- MBWM's Dividend Yield is a higher than the industry average which is at 2.56.
- MBWM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
- The dividend of MBWM has a limited annual growth rate of 5.59%.
- MBWM has been paying a dividend for at least 10 years, so it has a reliable track record.
- MBWM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.59%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
- MBWM pays out 26.99% 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.
DP26.99%
EPS Next 2Y5.57%
EPS Next 3YN/A
MBWM Fundamentals: All Metrics, Ratios and Statistics
51.96
+0.65 (+1.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Industry Strength69.57
Industry Growth91.3
Earnings (Last)04-21 2026-04-21/bmo
Earnings (Next)07-20 2026-07-20
Inst Owners63.33%
Inst Owner Change0.2%
Ins Owners2.53%
Ins Owner Change5.05%
Market Cap897.35M
Revenue(TTM)242.65M
Net Income(TTM)88.75M
Analysts76.67
Price Target59.67 (14.84%)
Short Float %1.74%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend1.44
Dividend Growth(5Y)5.59%
DP26.99%
Div Incr Years13
Div Non Decr Years13
Ex-Date03-06 2026-03-06 (0.39)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.49%
Min EPS beat(2)3.01%
Max EPS beat(2)3.96%
EPS beat(4)4
Avg EPS beat(4)4.19%
Min EPS beat(4)0.26%
Max EPS beat(4)9.53%
EPS beat(8)7
Avg EPS beat(8)4.67%
EPS beat(12)10
Avg EPS beat(12)5.93%
EPS beat(16)12
Avg EPS beat(16)4.93%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-2.18%
Max Revenue beat(4)-0.27%
Revenue beat(8)1
Avg Revenue beat(8)-2.15%
Revenue beat(12)3
Avg Revenue beat(12)-1.35%
Revenue beat(16)5
Avg Revenue beat(16)-1.2%
PT rev (1m)-0.99%
PT rev (3m)5.05%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.1 | ||
| Fwd PE | 8.54 | ||
| P/S | 3.7 | ||
| P/FCF | 80.06 | ||
| P/OCF | 49.93 | ||
| P/B | 1.24 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.71
EY10.99%
EPS(NY)6.09
Fwd EY11.71%
FCF(TTM)0.65
FCFY1.25%
OCF(TTM)1.04
OCFY2%
SpS14.05
BVpS41.97
TBVpS36.59
PEG (NY)1.97
PEG (5Y)0.57
Graham Number73.434 (41.33%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 12.24% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 36.58% | ||
| GM | N/A | ||
| FCFM | 4.62% |
ROA(3y)1.38%
ROA(5y)1.31%
ROE(3y)13.87%
ROE(5y)13.67%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y4.44%
PM growth 5Y6.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 35.95 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 116.68% | ||
| Cap/Sales | 2.79% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 12.63% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC12.26%
ROIC/WACCN/A
Cap/Depr(3y)85.35%
Cap/Depr(5y)64.04%
Cap/Sales(3y)3.15%
Cap/Sales(5y)2.82%
Profit Quality(3y)67.28%
Profit Quality(5y)98.63%
High Growth Momentum
Growth
EPS 1Y (TTM)18.46%
EPS 3Y12.35%
EPS 5Y16%
EPS Q2Q%20.66%
EPS Next Y4.62%
EPS Next 2Y5.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.83%
Revenue growth 3Y8.44%
Revenue growth 5Y7.71%
Sales Q2Q%18.08%
Revenue Next Year15.91%
Revenue Next 2Y10.15%
Revenue Next 3YN/A
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-87.89%
FCF growth 3Y-54.23%
FCF growth 5Y-17.26%
OCF growth 1Y-82.23%
OCF growth 3Y-46.88%
OCF growth 5Y-13.86%
MERCANTILE BANK CORP / MBWM Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for MERCANTILE BANK CORP?
ChartMill assigns a fundamental rating of 4 / 10 to MBWM.
What is the valuation status for MBWM stock?
ChartMill assigns a valuation rating of 4 / 10 to MERCANTILE BANK CORP (MBWM). This can be considered as Fairly Valued.
How profitable is MERCANTILE BANK CORP (MBWM) stock?
MERCANTILE BANK CORP (MBWM) has a profitability rating of 5 / 10.
What is the earnings growth outlook for MERCANTILE BANK CORP?
The Earnings per Share (EPS) of MERCANTILE BANK CORP (MBWM) is expected to grow by 4.62% in the next year.
Is the dividend of MERCANTILE BANK CORP sustainable?
The dividend rating of MERCANTILE BANK CORP (MBWM) is 7 / 10 and the dividend payout ratio is 26.99%.