NasdaqCM:MFNC

Stock Analysis Report

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Executive Summary

Mackinac Financial Corporation operates as the bank holding company for mBank that provides commercial and retail banking products and services in the United States.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Mackinac Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MFNC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

MFNC

3.8%

US Banks

1.9%

US Market


1 Year Return

-34.4%

MFNC

-19.0%

US Banks

16.4%

US Market

Return vs Industry: MFNC underperformed the US Banks industry which returned -20% over the past year.

Return vs Market: MFNC underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

MFNCIndustryMarket
7 Day3.1%3.8%1.9%
30 Day-0.4%5.4%4.5%
90 Day9.2%13.7%17.6%
1 Year-31.5%-34.4%-16.1%-19.0%18.9%16.4%
3 Year-24.7%-32.3%-10.1%-17.4%44.1%34.8%
5 Year5.5%-11.6%13.8%-0.07%75.3%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mackinac Financial undervalued compared to its fair value and its price relative to the market?

7.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MFNC ($9.5) is trading above our estimate of fair value ($7.1)

Significantly Below Fair Value: MFNC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MFNC is good value based on its PE Ratio (7.5x) compared to the US Banks industry average (9.9x).

PE vs Market: MFNC is good value based on its PE Ratio (7.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MFNC is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Mackinac Financial forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFNC's earnings are forecast to decline over the next 3 years (-25.2% per year).

Earnings vs Market: MFNC's earnings are forecast to decline over the next 3 years (-25.2% per year).

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

Revenue vs Market: MFNC's revenue is expected to decline over the next 3 years (-4.8% per year).

High Growth Revenue: MFNC's revenue is forecast to decline over the next 3 years (-4.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Mackinac Financial performed over the past 5 years?

29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFNC has high quality earnings.

Growing Profit Margin: MFNC's current net profit margins (21.7%) are lower than last year (22.7%).


Past Earnings Growth Analysis

Earnings Trend: MFNC's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: MFNC's earnings growth over the past year (1.8%) is below its 5-year average (29.2% per year).

Earnings vs Industry: MFNC earnings growth over the past year (1.8%) exceeded the Banks industry -2.9%.


Return on Equity

High ROE: MFNC's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Mackinac Financial'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: MFNC's Assets to Equity ratio (9.3x) is low.

Allowance for Bad Loans: MFNC has a low allowance for bad loans (87%).

Low Risk Liabilities: 91% of MFNC's liabilities are made up of primarily low risk sources of funding.

Loan Level: MFNC has an appropriate level of Loans to Assets ratio (76%).

Low Risk Deposits: MFNC's Loans to Deposits ratio (94%) is appropriate.

Level of Bad Loans: MFNC has an appropriate level of bad loans (0.5%).


Next Steps

Dividend

What is Mackinac Financial current dividend yield, its reliability and sustainability?

5.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MFNC's dividend (5.89%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: MFNC's dividend (5.89%) is in the top 25% of dividend payers in the US market (4.35%)


Stability and Growth of Payments

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

Growing Dividend: MFNC's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.3%), MFNC'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?

13.8yrs

Average management tenure


CEO

Paul Tobias (69 yo)

15.67yrs

Tenure

US$758,812

Compensation

Mr. Paul D. Tobias has been the Chairman and Chief Executive Officer at Mackinac Financial Corporation since December 16, 2004. Mr. Tobias has been the Chairman of mBank since December 16, 2004. He is a ve ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD758.81K) is about average for companies of similar size in the US market ($USD593.36K).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Tobias
Chairman & CEO15.67yrsUS$758.81k1.63%
$ 1.6m
Kelly George
President & Director14.58yrsUS$823.81k0.93%
$ 925.7k
Jesse Deering
Executive VP & CFO4yrsUS$490.37k0.25%
$ 248.0k

13.8yrs

Average Tenure

52yo

Average Age

Experienced Management: MFNC's management team is seasoned and experienced (13.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Tobias
Chairman & CEO15.67yrsUS$758.81k1.63%
$ 1.6m
Kelly George
President & Director14.58yrsUS$823.81k0.93%
$ 925.7k
Walter Aspatore
Independent Lead Directorno dataUS$54.15k0.29%
$ 290.9k
Martin Thomson
Independent Director2.25yrsUS$43.40k0.43%
$ 431.2k
Dennis Bittner
Independent Director19.58yrsUS$46.15k0.039%
$ 39.0k
Randolph Paschke
Independent Director15.67yrsUS$48.65k0.31%
$ 307.0k
Robert Orley
Independent Director15.67yrsUS$44.40k0.36%
$ 357.6k
David Steinhardt
Independent Director8yrsUS$46.65k10.07%
$ 10.1m
Joseph Garea
Independent Director13.58yrsUS$44.40k0.86%
$ 858.0k
Robert Mahaney
Director12.58yrsUS$47.65k0.28%
$ 275.3k

14.6yrs

Average Tenure

67yo

Average Age

Experienced Board: MFNC's board of directors are seasoned and experienced ( 14.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mackinac Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mackinac Financial Corporation
  • Ticker: MFNC
  • Exchange: NasdaqCM
  • Founded: 1974
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$100.069m
  • Shares outstanding: 10.53m
  • Website: https://www.bankmbank.com

Number of Employees


Location

  • Mackinac Financial Corporation
  • 130 South Cedar Street
  • Manistique
  • Michigan
  • 49854
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFNCNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDFeb 2000

Biography

Mackinac Financial Corporation operates as the bank holding company for mBank that provides commercial and retail banking products and services in the United States. It offers interest bearing and non-inte ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 01:09
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
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.