45.98 USD
-0.49 (-1.05%)
45.98 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MBWM. MBWM was compared to 387 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. Finally MBWM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MBWM had positive earnings in the past year.
In the past year MBWM had a positive cash flow from operations.
Each year in the past 5 years MBWM has been profitable.
In the past 5 years MBWM always reported a positive cash flow from operatings.
1.2 Ratios
MBWM has a better Return On Assets (1.36%) than 85.27% of its industry peers.
MBWM has a Return On Equity of 13.01%. This is amongst the best in the industry. MBWM outperforms 87.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.36% | ||
| ROE | 13.01% | ||
| 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
1.3 Margins
With an excellent Profit Margin value of 35.77%, MBWM belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
MBWM's Profit Margin has been stable in the last couple of years.
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) | 35.77% | ||
| 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
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.
Compared to 5 years ago, MBWM has less shares outstanding
The debt/assets ratio for MBWM has been reduced compared to a year ago.
2.2 Solvency
MBWM has a debt to FCF ratio of 6.02. This is a slightly negative value and a sign of low solvency as MBWM would need 6.02 years to pay back of all of its debts.
The Debt to FCF ratio of MBWM (6.02) is worse than 74.42% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that MBWM is somewhat dependend on debt financing.
The Debt to Equity ratio of MBWM (0.60) is worse than 79.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.01%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MBWM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.02%.
Measured over the past years, MBWM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.29% on average per year.
MBWM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.01%.
The Revenue has been growing by 8.85% on average over the past years. This is quite good.
EPS 1Y (TTM)6.02%
EPS 3Y9.21%
EPS 5Y11.29%
EPS Q2Q%19.67%
Revenue 1Y (TTM)4.01%
Revenue growth 3Y8.68%
Revenue growth 5Y8.85%
Sales Q2Q%7.65%
3.2 Future
The Earnings Per Share is expected to grow by 5.90% 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 7.77% yearly.
EPS Next Y11.24%
EPS Next 2Y5.75%
EPS Next 3Y5.9%
EPS Next 5YN/A
Revenue Next Year5.58%
Revenue Next 2Y8.31%
Revenue Next 3Y7.77%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.71, the valuation of MBWM can be described as very reasonable.
MBWM's Price/Earnings ratio is rather cheap when compared to the industry. MBWM is cheaper than 88.37% of the companies in the same industry.
MBWM is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
MBWM is valuated reasonably with a Price/Forward Earnings ratio of 8.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MBWM indicates a rather cheap valuation: MBWM is cheaper than 80.36% of the companies listed in the same industry.
MBWM is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 8.31 |
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 | 11.49 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MBWM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.77
PEG (5Y)0.77
EPS Next 2Y5.75%
EPS Next 3Y5.9%
5. Dividend
5.1 Amount
MBWM has a Yearly Dividend Yield of 3.45%.
MBWM's Dividend Yield is a higher than the industry average which is at 3.33.
MBWM's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
On average, the dividend of MBWM grows each year by 6.02%, which is quite nice.
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
5.3 Sustainability
27.57% of the earnings are spent on dividend by MBWM. This is a low number and sustainable payout ratio.
The dividend of MBWM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.57%
EPS Next 2Y5.75%
EPS Next 3Y5.9%
45.98
-0.49 (-1.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners65.65%
Inst Owner Change4.03%
Ins Owners2.76%
Ins Owner Change0.3%
Market Cap747.17M
Revenue(TTM)239.11M
Net Income(TTM)85.54M
Analysts78.18
Price Target53.86 (17.14%)
Short Float %1.21%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend1.39
Dividend Growth(5Y)6.02%
DP27.57%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.75%
Min EPS beat(2)3.96%
Max EPS beat(2)9.53%
EPS beat(4)4
Avg EPS beat(4)4.53%
Min EPS beat(4)0.26%
Max EPS beat(4)9.53%
EPS beat(8)6
Avg EPS beat(8)4.17%
EPS beat(12)10
Avg EPS beat(12)6.67%
EPS beat(16)12
Avg EPS beat(16)5.19%
Revenue beat(2)0
Avg Revenue beat(2)-0.37%
Min Revenue beat(2)-0.46%
Max Revenue beat(2)-0.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-2.18%
Max Revenue beat(4)0.01%
Revenue beat(8)1
Avg Revenue beat(8)-1.95%
Revenue beat(12)4
Avg Revenue beat(12)-0.62%
Revenue beat(16)5
Avg Revenue beat(16)-1.19%
PT rev (1m)-5.04%
PT rev (3m)-5.04%
EPS NQ rev (1m)12.19%
EPS NQ rev (3m)11.16%
EPS NY rev (1m)4.56%
EPS NY rev (3m)9.79%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 8.31 | ||
| P/S | 3.12 | ||
| P/FCF | 11.49 | ||
| P/OCF | 10.35 | ||
| P/B | 1.14 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.28
EY11.48%
EPS(NY)5.54
Fwd EY12.04%
FCF(TTM)4
FCFY8.71%
OCF(TTM)4.44
OCFY9.66%
SpS14.71
BVpS40.47
TBVpS37.42
PEG (NY)0.77
PEG (5Y)0.77
Graham Number69.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.36% | ||
| ROE | 13.01% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 35.77% | ||
| GM | N/A | ||
| FCFM | 27.21% |
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
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 3Y1.67%
PM growth 5Y1.03%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.02 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 105.34% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 76.05% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC12.01%
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)6.02%
EPS 3Y9.21%
EPS 5Y11.29%
EPS Q2Q%19.67%
EPS Next Y11.24%
EPS Next 2Y5.75%
EPS Next 3Y5.9%
EPS Next 5YN/A
Revenue 1Y (TTM)4.01%
Revenue growth 3Y8.68%
Revenue growth 5Y8.85%
Sales Q2Q%7.65%
Revenue Next Year5.58%
Revenue Next 2Y8.31%
Revenue Next 3Y7.77%
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-37.51%
FCF growth 3Y16.21%
FCF growth 5Y24.22%
OCF growth 1Y-34.97%
OCF growth 3Y16.11%
OCF growth 5Y17.68%
MERCANTILE BANK CORP / MBWM FAQ
Can you provide the ChartMill fundamental rating for MERCANTILE BANK CORP?
ChartMill assigns a fundamental rating of 4 / 10 to MBWM.
Can you provide the valuation status for MERCANTILE BANK CORP?
ChartMill assigns a valuation rating of 6 / 10 to MERCANTILE BANK CORP (MBWM). This can be considered as Fairly Valued.
What is the profitability of MBWM stock?
MERCANTILE BANK CORP (MBWM) has a profitability rating of 5 / 10.
How financially healthy is MERCANTILE BANK CORP?
The financial health rating of MERCANTILE BANK CORP (MBWM) is 1 / 10.
Can you provide the dividend sustainability for MBWM stock?
The dividend rating of MERCANTILE BANK CORP (MBWM) is 7 / 10 and the dividend payout ratio is 27.57%.