Mercantile Bank Corporation
Find Ratings ReportsMERCANTILE BANK CORP's gross profit margin for the third quarter of its fiscal year 2020 is essentially unchanged 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 6.06% from the same quarter last year.
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Income Statement | Q3 FY20 | Q3 FY19 |
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Net Sales ($mil) | 48.9 | 46.99 |
EBITDA ($mil) | 19.99 | 21.58 |
EBIT ($mil) | 17.11 | 19.3 |
Net Income ($mil) | 10.69 | 12.6 |
Balance Sheet | Q3 FY20 | Q3 FY19 |
---|---|---|
Cash & Equiv. ($mil) | 554.59 | 228.54 |
Total Assets ($mil) | 4420.61 | 3710.38 |
Total Debt ($mil) | 598.41 | 514.7 |
Equity ($mil) | 431.9 | 407.2 |
Profitability | Q3 FY20 | Q3 FY19 |
---|---|---|
Gross Profit Margin | 81.01 | 79.97 |
EBITDA Margin | 40.87 | 45.91 |
Operating Margin | 34.99 | 41.07 |
Sales Turnover | 0.04 | 0.05 |
Return on Assets | 0.98 | 1.28 |
Return on Equity | 10.04 | 11.72 |
Debt | Q3 FY20 | Q3 FY19 |
---|---|---|
Current Ratio | 0.0 | 0.0 |
Debt/Capital | 0.58 | 0.56 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q3 FY20 | Q3 FY19 |
---|---|---|
Shares outstanding (mil) | 16.24 | 16.33 |
Div / share | 0.28 | 0.27 |
EPS | 0.66 | 0.77 |
Book value / share | 26.59 | 24.93 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 46957.0 | 39064.0 |
BUY. MERCANTILE BANK CORP's P/E ratio indicates a significant discount compared to an average of 27.22 for the Credit Intermediation and Related Activities subsector and a significant discount compared to the S&P 500 average of 38.64. Conducting a second comparison, its price-to-book ratio of 1.09 indicates a significant discount versus the S&P 500 average of 4.02 and a discount versus the subsector average of 1.34. The price-to-sales ratio is 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 10.92 | Peers 22.00 | MBWM 11.64 | Peers 14.43 | |||||||||||||||||||||
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 discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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MBWM 16.32 | Peers 24.35 | MBWM NM | Peers 1.39 | |||||||||||||||||||||
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 1.34 | MBWM -8.28 | Peers -24.50 | |||||||||||||||||||||
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 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 2.50 | Peers 2.80 | MBWM 4.10 | Peers -4.95 | |||||||||||||||||||||
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 discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. MBWM has a sales growth rate that significantly exceeds its peers. |
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