NEW YORK ( TheStreet) -- Mercantile Bank Corporation (Nasdaq: MBWM) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, notable return on equity, attractive valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Highlights from the ratings report include:
- Powered by its strong earnings growth of 643.54% and other important driving factors, this stock has surged by 30.53% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MBWM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 712.2% when compared to the same quarter one year prior, rising from -$4.95 million to $30.32 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Commercial Banks industry and the overall market, MERCANTILE BANK CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- The gross profit margin for MERCANTILE BANK CORP is rather high; currently it is at 67.60%. It has increased significantly from the same period last year. Along with this, the net profit margin of 164.50% significantly outperformed against the industry average.