| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
MBWM Stock Overview
Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services for small- to medium-sized businesses and individuals in the United States.
Mercantile Bank Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$37.70 |
| 52 Week High | US$37.95 |
| 52 Week Low | US$26.76 |
| Beta | 1.13 |
| 1 Month Change | 8.18% |
| 3 Month Change | 11.97% |
| 1 Year Change | 30.77% |
| 3 Year Change | 17.26% |
| 5 Year Change | 15.72% |
| Change since IPO | 342.06% |
Recent News & Updates
Shareholder Returns
| MBWM | US Banks | US Market | |
|---|---|---|---|
| 7D | 0.6% | -0.5% | -0.5% |
| 1Y | 30.8% | 32.9% | 13.7% |
Return vs Industry: MBWM underperformed the US Banks industry which returned 32.9% over the past year.
Return vs Market: MBWM exceeded the US Market which returned 13.7% over the past year.
Price Volatility
| MBWM volatility | |
|---|---|
| MBWM Average Weekly Movement | 3.6% |
| Banks Industry Average Movement | 3.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: MBWM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MBWM's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1997 | 621 | Bob Kaminski | https://www.mercbank.com |
Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services for small- to medium-sized businesses and individuals in the United States. It accepts various deposit products, including checking, savings, and term certificate accounts; time deposits; and certificates of deposit. The company also offers commercial, residential mortgage, and instalment loans; vacant land, land development, and residential construction loans; owner and non-owner occupied, and multi-family and residential rental property real estate loans; single-family residential real estate loans; home equity line of credit programs; and consumer loans, such as loans for new and used automobiles, boats, and credit cards, as well as overdraft protection services.
Mercantile Bank Fundamentals Summary
| MBWM fundamental statistics | |
|---|---|
| Market Cap | US$590.79m |
| Earnings (TTM) | US$61.46m |
| Revenue (TTM) | US$179.10m |
9.6x
P/E Ratio1.3x
P/B RatioIs MBWM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MBWM income statement (TTM) | |
|---|---|
| Revenue | US$179.10m |
| Cost of Revenue | US$0 |
| Gross Profit | US$179.10m |
| Expenses | US$117.63m |
| Earnings | US$61.46m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 18, 2022
| Earnings per share (EPS) | 3.92 |
| Gross Margin | 100.00% |
| Net Profit Margin | 34.32% |
| Debt/Equity Ratio | 137.8% |
How did MBWM perform over the long term?
See historical performance and comparisonDividends
3.2%
Current Dividend Yield30%
Payout RatioValuation
Is Mercantile Bank undervalued compared to its fair value and its price relative to the market?
15.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MBWM ($37.7) is trading below our estimate of fair value ($44.38)
Significantly Below Fair Value: MBWM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MBWM is good value based on its PE Ratio (9.6x) compared to the US Banks industry average (11.3x).
PE vs Market: MBWM is good value based on its PE Ratio (9.6x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: MBWM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MBWM's PB Ratio (1.3x) is in line with the US Banks industry average.
Future Growth
How is Mercantile Bank forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-14.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MBWM's earnings are forecast to decline over the next 3 years (-14.2% per year).
Earnings vs Market: MBWM's earnings are forecast to decline over the next 3 years (-14.2% per year).
High Growth Earnings: MBWM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MBWM's revenue is expected to decline over the next 3 years (-0.2% per year).
High Growth Revenue: MBWM's revenue is forecast to decline over the next 3 years (-0.2% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MBWM's Return on Equity is forecast to be low in 3 years time (9.4%).
Past Performance
How has Mercantile Bank performed over the past 5 years?
12.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MBWM has high quality earnings.
Growing Profit Margin: MBWM's current net profit margins (34.3%) are higher than last year (29.7%).
Past Earnings Growth Analysis
Earnings Trend: MBWM's earnings have grown by 12.8% per year over the past 5 years.
Accelerating Growth: MBWM's earnings growth over the past year (41.7%) exceeds its 5-year average (12.8% per year).
Earnings vs Industry: MBWM earnings growth over the past year (41.7%) underperformed the Banks industry 43.7%.
Return on Equity
High ROE: MBWM's Return on Equity (13.6%) is considered low.
Financial Health
How is Mercantile Bank's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: MBWM's Assets to Equity ratio (11x) is moderate.
Allowance for Bad Loans: MBWM has a sufficient allowance for bad loans (1353%).
Low Risk Liabilities: 86% of MBWM's liabilities are made up of primarily low risk sources of funding.
Loan Level: MBWM has an appropriate level of Loans to Assets ratio (66%).
Low Risk Deposits: MBWM's Loans to Deposits ratio (85%) is appropriate.
Level of Bad Loans: MBWM has an appropriate level of bad loans (0.1%).
Dividend
What is Mercantile Bank current dividend yield, its reliability and sustainability?
3.18%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MBWM's dividend (3.18%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: MBWM's dividend (3.18%) is low compared to the top 25% of dividend payers in the US market (3.44%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, MBWM has been paying a dividend for less than 10 years.
Growing Dividend: MBWM's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.4%), MBWM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MBWM's dividends in 3 years are forecast to be well covered by earnings (41.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Bob Kaminski (59 yo)
5yrs
Tenure
US$1,087,367
Compensation
Mr. Robert B. Kaminski, Jr., also known as Bob, has been the President and Chief Executive Officer of Mercantile Bank Corporation since January 1, 2017. Mr. Kaminski has been the Chief Executive Officer of...
CEO Compensation Analysis
Compensation vs Market: Bob's total compensation ($USD1.09M) is below average for companies of similar size in the US market ($USD1.68M).
Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: MBWM's management team is seasoned and experienced (5.3 years average tenure).
Board Members
Experienced Board: MBWM's board of directors are considered experienced (5.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MBWM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Mercantile Bank Corporation's employee growth, exchange listings and data sources
Key Information
- Name: Mercantile Bank Corporation
- Ticker: MBWM
- Exchange: NasdaqGS
- Founded: 1997
- Industry: Regional Banks
- Sector: Banks
- Implied Market Cap: US$590.787m
- Shares outstanding: 15.67m
- Website: https://www.mercbank.com
Number of Employees
Location
- Mercantile Bank Corporation
- 310 Leonard Street NW
- Grand Rapids
- Michigan
- 49504
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:16 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.