MERIDIAN CORP (MRBK) Stock Fundamental Analysis
NASDAQ:MRBK - Nasdaq - US58958P1049 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MRBK. MRBK was compared to 393 industry peers in the Banks industry. MRBK may be in some trouble as it scores bad on both profitability and health. An interesting combination arises when we look at growth and value: MRBK is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year MRBK was profitable.
MRBK had a positive operating cash flow in the past year.
In the past 5 years MRBK has always been profitable.
Of the past 5 years MRBK 4 years had a positive operating cash flow.
1.2 Ratios
MRBK has a Return On Assets of 0.64%. This is in the lower half of the industry: MRBK underperforms 65.65% of its industry peers.
Looking at the Return On Equity, with a value of 9.26%, MRBK is in line with its industry, outperforming 59.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 9.26% | ||
| ROIC | N/A |
ROA(3y)0.78%
ROA(5y)1.19%
ROE(3y)10.71%
ROE(5y)14.46%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 13.99%, MRBK is not doing good in the industry: 76.34% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of MRBK has remained more or less at the same level.
The Operating Margin and Gross Margin are not available for MRBK so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 13.99% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-14.84%
PM growth 5Y-0.78%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
MRBK does not have a ROIC to compare to the WACC, probably because it is not profitable.
MRBK has more shares outstanding than it did 1 year ago.
MRBK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MRBK has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of MRBK is 6.21, which is on the high side as it means it would take MRBK, 6.21 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.21, MRBK is not doing good in the industry: 71.25% of the companies in the same industry are doing better.
MRBK has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
MRBK has a Debt to Equity ratio of 1.09. This is amonst the worse of the industry: MRBK underperforms 86.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC23.39%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.30% over the past year.
Measured over the past years, MRBK shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.10% on average per year.
Looking at the last year, MRBK shows a quite strong growth in Revenue. The Revenue has grown by 11.33% in the last year.
MRBK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.11% yearly.
EPS 1Y (TTM)38.3%
EPS 3Y-38.52%
EPS 5Y-6.1%
EPS Q2Q%50%
Revenue 1Y (TTM)11.33%
Revenue growth 3Y-9.41%
Revenue growth 5Y10.11%
Sales Q2Q%24.37%
3.2 Future
The Earnings Per Share is expected to grow by 38.87% on average over the next years. This is a very strong growth
Based on estimates for the next years, MRBK will show a quite strong growth in Revenue. The Revenue will grow by 11.44% on average per year.
EPS Next Y37.14%
EPS Next 2Y38.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.41%
Revenue Next 2Y11.44%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.46 indicates a reasonable valuation of MRBK.
Compared to the rest of the industry, the Price/Earnings ratio of MRBK indicates a somewhat cheap valuation: MRBK is cheaper than 61.07% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MRBK to the average of the S&P500 Index (26.86), we can say MRBK is valued rather cheaply.
MRBK is valuated cheaply with a Price/Forward Earnings ratio of 6.49.
92.88% of the companies in the same industry are more expensive than MRBK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MRBK to the average of the S&P500 Index (34.94), we can say MRBK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 6.49 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MRBK is valued cheaper than 89.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.52 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MRBK's earnings are expected to grow with 38.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y38.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MRBK has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 3.41, MRBK has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, MRBK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
MRBK has been paying a dividend for over 5 years, so it has already some track record.
The dividend of MRBK decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
34.91% of the earnings are spent on dividend by MRBK. This is a low number and sustainable payout ratio.
DP34.91%
EPS Next 2Y38.87%
EPS Next 3YN/A
14.9
+0.04 (+0.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners60.23%
Inst Owner Change3.86%
Ins Owners9.86%
Ins Owner Change1.4%
Market Cap168.37M
Analysts82.86
Price Target19.38 (30.07%)
Short Float %2.22%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP34.91%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-36.18%
Min EPS beat(2)-39.67%
Max EPS beat(2)-32.69%
EPS beat(4)1
Avg EPS beat(4)-15.11%
Min EPS beat(4)-39.67%
Max EPS beat(4)17.65%
EPS beat(8)2
Avg EPS beat(8)-18.75%
EPS beat(12)4
Avg EPS beat(12)-13.15%
EPS beat(16)8
Avg EPS beat(16)-4.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-4.86%
Max Revenue beat(2)3.87%
Revenue beat(4)2
Avg Revenue beat(4)1.51%
Min Revenue beat(4)-4.86%
Max Revenue beat(4)7.39%
Revenue beat(8)4
Avg Revenue beat(8)-0.44%
Revenue beat(12)4
Avg Revenue beat(12)-2.77%
Revenue beat(16)7
Avg Revenue beat(16)-1.49%
PT rev (1m)11.76%
PT rev (3m)11.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 6.49 | ||
| P/S | 1.47 | ||
| P/FCF | 5.52 | ||
| P/OCF | 5.72 | ||
| P/B | 0.97 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.3
EY8.72%
EPS(NY)2.3
Fwd EY15.4%
FCF(TTM)2.7
FCFY18.12%
OCF(TTM)2.6
OCFY17.47%
SpS10.16
BVpS15.36
TBVpS14.66
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 9.26% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 13.99% | ||
| GM | N/A | ||
| FCFM | 26.56% |
ROA(3y)0.78%
ROA(5y)1.19%
ROE(3y)10.71%
ROE(5y)14.46%
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 3Y-14.84%
PM growth 5Y-0.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.21 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 291.13% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 189.83% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC23.39%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)1.64%
Cap/Sales(5y)1.8%
Profit Quality(3y)186.36%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.3%
EPS 3Y-38.52%
EPS 5Y-6.1%
EPS Q2Q%50%
EPS Next Y37.14%
EPS Next 2Y38.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.33%
Revenue growth 3Y-9.41%
Revenue growth 5Y10.11%
Sales Q2Q%24.37%
Revenue Next Year13.41%
Revenue Next 2Y11.44%
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-52.11%
FCF growth 3Y-61.62%
FCF growth 5Y-15.45%
OCF growth 1Y-55.96%
OCF growth 3Y-61.26%
OCF growth 5Y-14.98%