NasdaqGS:MCBS

Stock Analysis Report

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Executive Summary

MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that offers banking products and services in Georgia, The United States.


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has MetroCity Bankshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MCBS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.5%

MCBS

1.3%

US Banks

1.8%

US Market


1 Year Return

n/a

MCBS

-28.7%

US Banks

3.7%

US Market

Return vs Industry: Insufficient data to determine how MCBS performed against the US Banks industry.

Return vs Market: Insufficient data to determine how MCBS performed against the US Market.


Shareholder returns

MCBSIndustryMarket
7 Day1.5%1.3%1.8%
30 Day0.2%-0.2%5.6%
90 Day-30.9%-33.9%-7.4%
1 Yearn/a-26.3%-28.7%6.1%3.7%
3 Year36.5%24.6%-16.8%-23.3%28.3%19.8%
5 Yearn/a5.7%-6.9%52.4%35.1%

Price Volatility Vs. Market

How volatile is MetroCity Bankshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MetroCity Bankshares undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCBS ($10.12) is trading below our estimate of fair value ($45.32)

Significantly Below Fair Value: MCBS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MCBS is good value based on its PE Ratio (5.5x) compared to the Banks industry average (9.3x).

PE vs Market: MCBS is good value based on its PE Ratio (5.5x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: MCBS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MCBS is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is MetroCity Bankshares forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCBS's earnings are forecast to decline over the next 3 years (-22% per year).

Earnings vs Market: MCBS's earnings are forecast to decline over the next 3 years (-22% per year).

High Growth Earnings: MCBS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MCBS's revenue is expected to decline over the next 3 years (-5.8% per year).

High Growth Revenue: MCBS's revenue is forecast to decline over the next 3 years (-5.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MCBS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has MetroCity Bankshares performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCBS has high quality earnings.

Growing Profit Margin: MCBS's current net profit margins (44.5%) are higher than last year (42%).


Past Earnings Growth Analysis

Earnings Trend: MCBS's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: MCBS's earnings growth over the past year (17.3%) is below its 5-year average (24.4% per year).

Earnings vs Industry: MCBS earnings growth over the past year (17.3%) exceeded the Banks industry 2.9%.


Return on Equity

High ROE: MCBS's Return on Equity (20.5%) is considered high.


Next Steps

Financial Health

How is MetroCity Bankshares'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: MCBS's Assets to Equity ratio (7.2x) is low.

Allowance for Bad Loans: MCBS has a low allowance for bad loans (49%).

Low Risk Liabilities: 90% of MCBS's liabilities are made up of primarily low risk sources of funding.

Loan Level: MCBS has an appropriate level of Loans to Assets ratio (78%).

Low Risk Deposits: MCBS's Loans to Deposits ratio (101%) is appropriate.

Level of Bad Loans: MCBS has an appropriate level of bad loans (1.1%).


Next Steps

Dividend

What is MetroCity Bankshares's current dividend yield, its reliability and sustainability?

4.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MCBS's dividend (4.35%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: MCBS's dividend (4.35%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MCBS has been paying a dividend for less than 10 years.

Growing Dividend: MCBS's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.3%), MCBS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Nack Paek (76yo)

6.33yrs

Tenure

US$1,357,078

Compensation

Mr. Nack Young Paek is the Founder of Metro City Bank (“Bank”) in 2006. He is the Chairman of the Board of Directors and the Chief Executive Officer of MetroCity Bankshares Inc., and the Executive Chairman ...


CEO Compensation Analysis

Compensation vs Market: Nack's total compensation ($USD1.36M) is about average for companies of similar size in the US market ($USD1.42M).

Compensation vs Earnings: Nack's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nack Paek
Chairman & CEO6.33yrsUS$1.36m4.83% $12.5m
Farid Tan
President6.33yrsUS$1.36m2.89% $7.5m
Howard Kim
Executive VP3.33yrsUS$1.18m1.94% $5.0m
William Hungeling
Secretary & Director6.33yrsUS$48.00k0.31% $795.6k
Samuel Gunter
Executive VP4.33yrsno data0.0048% $12.3k

6.3yrs

Average Tenure

70yo

Average Age

Experienced Management: MCBS's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nack Paek
Chairman & CEO6.33yrsUS$1.36m4.83% $12.5m
Farid Tan
President6.33yrsUS$1.36m2.89% $7.5m
Howard Kim
Executive VP3.33yrsUS$1.18m1.94% $5.0m
William Hungeling
Secretary & Director6.33yrsUS$48.00k0.31% $795.6k
Sion Lai
Independent Director6.33yrsUS$50.05k2.1% $5.4m
Don Leung
Independent Director6.33yrsUS$52.65k4.61% $11.9m
Feiying Lu
Independent Director6.33yrsUS$45.45k0.046% $119.6k
Young Park
Independent Director6.33yrsUS$41.25k3.21% $8.3m
Ajit Patel
Independent Director6.33yrsUS$44.50k2.29% $5.9m
Frank Rhee
Independent Director6.33yrsUS$44.50k0.046% $119.6k

6.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: MCBS's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Top Shareholders

Company Information

MetroCity Bankshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MetroCity Bankshares, Inc.
  • Ticker: MCBS
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$258.362m
  • Shares outstanding: 25.53m
  • Website: https://www.metrocitybank.bank

Number of Employees


Location

  • MetroCity Bankshares, Inc.
  • 5114 Buford Highway
  • Doraville
  • Georgia
  • 30340
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCBSNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDApr 2016

Biography

MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that offers banking products and services in Georgia, The United States. It offers consumer and commercial checking accounts, savings accounts, certificates of deposits, money transfers, and other banking services. The company also provides construction and development, commercial real estate, commercial and industrial, residential mortgage, SBA, and other consumer loans; and online banking, treasury management, wire transfer, automated clearing house, and cash management services. It operates 19 full-service branch locations in Alabama, Florida, Georgia, New York, New Jersey, Texas, and Virginia. The company was founded in 2006 and is based in Doraville, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 10:18
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.