NasdaqCM:MNSB

Stock Analysis Report

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Executive Summary

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking products and services for individuals, small to medium-sized businesses, and professional service organizations primarily in Northern Virginia and the greater Washington, the District of Columbia metropolitan area.

Rewards

Trading at 19.5% below our estimate of its fair value

Earnings are forecast to grow 23.21% per year

Risk Analysis

No risks detected for MNSB from our risk checks.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has MainStreet Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.6%

MNSB

3.1%

US Banks

0.5%

US Market


1 Year Return

-34.0%

MNSB

-15.2%

US Banks

18.7%

US Market

Return vs Industry: MNSB underperformed the US Banks industry which returned -15.2% over the past year.

Return vs Market: MNSB underperformed the US Market which returned 18.7% over the past year.


Shareholder returns

MNSBIndustryMarket
7 Day0.6%3.1%0.5%
30 Day6.7%5.7%4.9%
90 Day6.4%20.1%19.8%
1 Year-34.0%-34.0%-12.2%-15.2%21.2%18.7%
3 Year-10.9%-10.9%-7.2%-14.8%46.2%36.8%
5 Yearn/a20.9%6.0%85.3%65.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MainStreet Bancshares undervalued compared to its fair value and its price relative to the market?

19.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNSB ($13.56) is trading below our estimate of fair value ($16.85)

Significantly Below Fair Value: MNSB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MNSB is poor value based on its PE Ratio (11.1x) compared to the US Banks industry average (10x).

PE vs Market: MNSB is good value based on its PE Ratio (11.1x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: MNSB is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: MNSB's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is MainStreet Bancshares forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

23.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNSB's forecast earnings growth (23.2% per year) is above the savings rate (2.2%).

Earnings vs Market: MNSB's earnings (23.2% per year) are forecast to grow slower than the US market (24.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MNSB's revenue (8.7% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: MNSB's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has MainStreet Bancshares performed over the past 5 years?

39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNSB has high quality earnings.

Growing Profit Margin: MNSB's current net profit margins (25.2%) are lower than last year (33.1%).


Past Earnings Growth Analysis

Earnings Trend: MNSB's earnings have grown significantly by 39.1% per year over the past 5 years.

Accelerating Growth: MNSB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MNSB had negative earnings growth (-20.5%) over the past year, making it difficult to compare to the Banks industry average (-2.9%).


Return on Equity

High ROE: MNSB's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is MainStreet Bancshares'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: MNSB's Assets to Equity ratio (10.9x) is moderate.

Allowance for Bad Loans: MNSB has a sufficient allowance for bad loans (1052%).

Low Risk Liabilities: 97% of MNSB's liabilities are made up of primarily low risk sources of funding.

Loan Level: MNSB has an appropriate level of Loans to Assets ratio (82%).

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

Level of Bad Loans: MNSB has an appropriate level of bad loans (0.1%).


Next Steps

Dividend

What is MainStreet Bancshares's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MNSB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MNSB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MNSB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MNSB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MNSB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Jeff Dick (59 yo)

4.58yrs

Tenure

US$791,235

Compensation

Mr. Jeff W. Dick has been the Chairman of the Board and Chief Executive Officer of MainStreet Bancshares, Inc. since 2016. Mr. Dick has been the Chairman and Chief Executive Officer of Mainstreet Bank (“Ba ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD791.24K) is above average for companies of similar size in the US market ($USD589.02K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeff Dick
Chairman of the Board & CEO4.58yrsUS$791.24k1.99%
$ 2.3m
Charles Brockett
President & Director3.58yrsUS$459.21k1.24%
$ 1.4m
Thomas Chmelik
Senior EVP4.08yrsUS$439.75k1.42%
$ 1.6m
Jacob Hutchinson
Executive VP & COOno datano datano data
Richard Vari
VP & Chief Accounting Officer0.92yrno data0.12%
$ 136.0k
Mike Rudolph
Executive VP & Senior Lenderno datano datano data

4.1yrs

Average Tenure

57yo

Average Age

Experienced Management: MNSB's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeff Dick
Chairman of the Board & CEO4.58yrsUS$791.24k1.99%
$ 2.3m
Charles Brockett
President & Director3.58yrsUS$459.21k1.24%
$ 1.4m
Thomas Chmelik
Senior EVP4.08yrsUS$439.75k1.42%
$ 1.6m
Darrell Green
Independent Director4.08yrsUS$92.00k0.21%
$ 236.9k
Paul Haddock
Vice Chairman & Lead Independent Director4.58yrsUS$50.00k0.21%
$ 241.9k
Russell Echlov
Independent Director1.67yrsno data0.0049%
$ 5.6k
Patsy Rust
Independent Director4.08yrsUS$50.00k0.23%
$ 267.1k
Terry Saeger
Independent Director4.08yrsUS$50.00k0.37%
$ 418.5k
Elizabeth Bennett
Independent Director4.08yrsUS$50.00k0.13%
$ 147.9k

4.1yrs

Average Tenure

59yo

Average Age

Experienced Board: MNSB's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MNSB 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

MainStreet Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MainStreet Bancshares, Inc.
  • Ticker: MNSB
  • Exchange: NasdaqCM
  • Founded: 2003
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$114.300m
  • Shares outstanding: 8.11m
  • Website: https://www.mstreetbank.com

Number of Employees


Location

  • MainStreet Bancshares, Inc.
  • 10089 Fairfax Boulevard
  • Fairfax
  • Virginia
  • 22030
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNSBNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 2005

Biography

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking products and services for individuals, small to medium-sized businesses, and professional ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 11:58
End of Day Share Price2020/08/13 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.