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Mercantile Bank Corporation

Find Ratings Reports
MBWM : NASDAQ :
$28.83 | %
Today's Range: 28.33 - 29.33
Avg. Daily Volume: 0
01/15/21 - 4:00 PM ET
Rating Summary Rating Detail Financial Analysis Peer Group

Financial Analysis


MERCANTILE 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY20 Q3 FY19
Net Sales ($mil)48.946.99
EBITDA ($mil)19.9921.58
EBIT ($mil)17.1119.3
Net Income ($mil)10.6912.6


Balance Sheet Q3 FY20 Q3 FY19
Cash & Equiv. ($mil)554.59228.54
Total Assets ($mil)4420.613710.38
Total Debt ($mil)598.41514.7
Equity ($mil)431.9407.2


Profitability Q3 FY20 Q3 FY19
Gross Profit Margin81.0179.97
EBITDA Margin40.8745.91
Operating Margin34.9941.07
Sales Turnover0.040.05
Return on Assets0.981.28
Return on Equity10.0411.72
Debt Q3 FY20 Q3 FY19
Current Ratio0.00.0
Debt/Capital0.580.56
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY20 Q3 FY19
Shares outstanding (mil)16.2416.33
Div / share0.280.27
EPS0.660.77
Book value / share26.5924.93
Institutional Own % n/a n/a
Avg Daily Volume46957.039064.0

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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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