Mercantile Bank Corporation
Find Ratings ReportsMERCANTILE BANK CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.
During the same period, stockholders' equity ("net worth") has increased by 18.29% from the same quarter last year.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 82.1 | 66.08 |
EBITDA ($mil) | 33.36 | 35.14 |
EBIT ($mil) | 30.72 | 32.05 |
Net Income ($mil) | 20.03 | 21.8 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 130.53 | 96.77 |
Total Assets ($mil) | 5353.22 | 4872.62 |
Total Debt ($mil) | 839.95 | 643.7 |
Equity ($mil) | 522.15 | 441.41 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 67.17 | 83.85 |
EBITDA Margin | 40.62 | 53.18 |
Operating Margin | 37.42 | 48.51 |
Sales Turnover | 0.06 | 0.04 |
Return on Assets | 1.53 | 1.25 |
Return on Equity | 15.75 | 13.83 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.0 | 0.0 |
Debt/Capital | 0.62 | 0.59 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 16.13 | 16.0 |
Div / share | 0.34 | 0.32 |
EPS | 1.25 | 1.37 |
Book value / share | 32.38 | 27.6 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 77052.0 | 36599.0 |
BUY. MERCANTILE BANK CORP's P/E ratio indicates a significant discount compared to an average of 17.75 for the Credit Intermediation and Related Activities subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.09 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 8.64. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, MERCANTILE BANK CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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MBWM 6.88 | Peers 17.75 | MBWM 8.55 | Peers 20.18 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. MBWM is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MBWM is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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MBWM 7.98 | Peers 13.86 | MBWM NM | Peers 1.78 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. MBWM is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MBWM's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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MBWM 1.09 | Peers 8.64 | MBWM 33.24 | Peers 24.72 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MBWM is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. MBWM is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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MBWM 1.88 | Peers 4.87 | MBWM 41.87 | Peers 44.87 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MBWM is trading at a significant discount to its subsector on this measurement. |
Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share. MBWM is keeping pace with its peers on the basis of sales growth. |
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