NasdaqCM:MNSB

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record.


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

0.3%

MNSB

-1.5%

US Banks

0.06%

US Market


1 Year Return

1.7%

MNSB

9.7%

US Banks

19.4%

US Market

Return vs Industry: MNSB underperformed the US Banks industry which returned 9.7% over the past year.

Return vs Market: MNSB underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

MNSBIndustryMarket
7 Day0.3%-1.5%0.06%
30 Day-3.7%-2.8%1.1%
90 Day1.5%0.3%8.9%
1 Year1.7%1.7%12.9%9.7%21.9%19.4%
3 Year36.6%36.6%22.5%13.7%48.9%39.3%
5 Yearn/a72.4%52.8%71.9%53.1%

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?

13.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MNSB ($22.11) is trading above our estimate of fair value ($14.66)

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


Price To Earnings Ratio

PE vs Industry: MNSB is poor value based on its PE Ratio (13.1x) compared to the Banks industry average (12.6x).

PE vs Market: MNSB is good value based on its PE Ratio (13.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MNSB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MNSB is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

2.2%

Forecasted Banks industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MNSB's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if MNSB's earnings are forecast to grow faster than the US market

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

Revenue vs Market: Insufficient data to determine if MNSB's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if MNSB's revenue is forecast to grow faster 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?

42.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNSB has high quality earnings.

Growing Profit Margin: MNSB's current net profit margins (32.7%) are higher than last year (29.4%).


Past Earnings Growth Analysis

Earnings Trend: MNSB's earnings have grown significantly by 42.1% per year over the past 5 years.

Accelerating Growth: MNSB's earnings growth over the past year (51.5%) exceeds its 5-year average (42.1% per year).

Earnings vs Industry: MNSB earnings growth over the past year (51.5%) exceeded the Banks industry 12.3%.


Return on Equity

High ROE: MNSB's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: MNSB has a low level of unsold assets or inventory.

Debt Coverage by Assets: MNSB's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

Asset Level: MNSB's level of assets compared to its equity is low.

Allowance for Bad Loans: MNSB has a sufficient allowance for bad loans.

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

Loan Level: MNSB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MNSB's loans are broadly funded by customer deposits.

Level of Bad Loans: MNSB has an appropriate level of bad loans (0.01%)


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 payouts.

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

3.6yrs

Average management tenure


CEO

Jeff Dick (58yo)

4.1yrs

Tenure

US$660,024

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 ($USD660.02K) is below average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeff Dick
Chairman of the Board & CEO4.1yrsUS$660.02k1.98% $3.6m
Charles Brockett
President & Director3.1yrsUS$418.28k1.21% $2.2m
Thomas Chmelik
Senior EVP3.6yrsUS$434.46k1.38% $2.5m
Jacob Hutchinson
Executive VP & COO0yrsno datano data
Richard Vari
VP & Chief Accounting Officer0.4yrsno data0.12% $213.2k
Abdul Hersiburane
Executive VP & Director of Business Development0yrsno datano data
Mike Rudolph
Executive VP & Senior Lender0yrsno datano data

3.6yrs

Average Tenure

56yo

Average Age

Experienced Management: MNSB's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeff Dick
Chairman of the Board & CEO4.1yrsUS$660.02k1.98% $3.6m
Charles Brockett
President & Director3.1yrsUS$418.28k1.21% $2.2m
Thomas Chmelik
Senior EVP3.6yrsUS$434.46k1.38% $2.5m
Darrell Green
Independent Director3.6yrsUS$79.96k0.15% $276.3k
Paul Haddock
Vice Chairman & Lead Independent Director4.1yrsUS$35.55k0.20% $355.7k
Russell Echlov
Independent Director1.2yrsno data0.0049% $8.8k
Patsy Rust
Independent Director3.6yrsUS$47.13k0.22% $394.3k
Terry Saeger
Independent Director3.6yrsUS$27.33k0.35% $633.0k
Elizabeth Bennett
Independent Director3.6yrsUS$43.42k0.11% $196.3k

3.6yrs

Average Tenure

58yo

Average Age

Experienced Board: MNSB's board of directors are considered experienced (3.6 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 and sold the same number of shares 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 24%.


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$179.075m
  • Shares outstanding: 8.10m
  • 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 StockUSUSDJul 2016

Biography

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking services for individuals, small to medium-sized businesses, and professionals primarily in Northern Virginia and the greater Washington, the District of Columbia metropolitan area. The company offers demand, NOW, money market, savings, and sweep accounts, as well as certificates of deposit; and online banking, wire transfer, check imaging, remote deposit capture, and courier services. It also provides commercial loans, including government contract receivables, plant and equipment, general working capital, contract administration, and acquisition loans; commercial real estate, real estate construction, and residential real estate loans; and consumer loans comprising car loans, term loans, credit cards, and overdraft protection. In addition, the company provides third party and other payment services; and deposit insurance solutions. It operates six branches in Herndon, Fairfax, Fairfax City, McLean, Clarendon, and Leesburg, Virginia; and provides automated teller machine transaction services at approximately 55,000 locations in the United States, Canada, the United Kingdom, and Mexico. MainStreet Bancshares, Inc. was founded in 2003 and is headquartered in Fairfax, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:46
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.