OTCPK:MCHB

Stock Analysis Report

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Market Cap

US$2.0b

Last Updated

2021/08/04 22:14 UTC

Data Sources

Company Financials

Executive Summary

Mechanics Bank provides various banking services for individual clients, and small and middle-market businesses. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Mechanics Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: Insufficient data to determine MCHB's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine MCHB's volatility change over the past year.


Market Performance


7 Day Return

3.3%

MCHB

1.2%

US Banks

0.9%

US Market


1 Year Return

61.5%

MCHB

61.5%

US Banks

34.7%

US Market

Return vs Industry: MCHB matched the US Banks industry which returned 61.5% over the past year.

Return vs Market: MCHB exceeded the US Market which returned 34.7% over the past year.


Shareholder returns

MCHBIndustryMarket
7 Day3.3%1.2%0.9%
30 Day6.9%-2.6%0.2%
90 Day8.8%-5.6%4.7%
1 Year76.0%61.5%66.0%61.5%36.8%34.7%
3 Year0.9%-7.5%18.3%8.1%62.5%52.4%
5 Year24.0%13.8%91.4%67.4%123.1%98.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Mechanics Bank undervalued compared to its fair value and its price relative to the market?

21.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCHB ($31000) is trading above our estimate of fair value ($12783.55)

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


Price To Earnings Ratio

PE vs Industry: MCHB is poor value based on its PE Ratio (21.3x) compared to the US Banks industry average (10.7x).

PE vs Market: MCHB is poor value based on its PE Ratio (21.3x) compared to the US market (18x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MCHB is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (1.1x).


Future Growth

How is Mechanics Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-1.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mechanics Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Mechanics Bank performed over the past 5 years?

27.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCHB has high quality earnings.

Growing Profit Margin: MCHB's current net profit margins (17.5%) are higher than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: MCHB's earnings have grown significantly by 27.5% per year over the past 5 years.

Accelerating Growth: MCHB's earnings growth over the past year (61.6%) exceeds its 5-year average (27.5% per year).

Earnings vs Industry: MCHB earnings growth over the past year (61.6%) exceeded the Banks industry 35.2%.


Return on Equity

High ROE: MCHB's Return on Equity (3.8%) is considered low.


Financial Health

How is Mechanics 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: MCHB's Assets to Equity ratio (7.8x) is low.

Allowance for Bad Loans: MCHB has a sufficient allowance for bad loans (335%).

Low Risk Liabilities: 98% of MCHB's liabilities are made up of primarily low risk sources of funding.

Loan Level: MCHB has an appropriate level of Loans to Assets ratio (57%).

Low Risk Deposits: MCHB's Loans to Deposits ratio (67%) is appropriate.

Level of Bad Loans: MCHB has an appropriate level of bad loans (0.3%).


Dividend

What is Mechanics Bank current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MCHB'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 MCHB's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: MCHB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCHB'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?

1.8yrs

Average management tenure


CEO

John DeCero (55 yo)

1.75yrs

Tenure

Mr. John W. DeCero serves as Chief Executive Officer at Mechanics Bank since November 2019 and serves as its President from November 2019. Mr. DeCero served as Co-President and Co-Chief Executive Officer o...


Leadership Team

Experienced Management: MCHB's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: MCHB's board of directors are considered experienced (6.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mechanics Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mechanics Bank
  • Ticker: MCHB
  • Exchange: OTCPK
  • Founded: 1905
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.991b
  • Shares outstanding: 64.22k
  • Website: https://www.mechanicsbank.com

Location

  • Mechanics Bank
  • 1350 North Main Street
  • Walnut Creek
  • California
  • 94596
  • United States

Listings


Biography

Mechanics Bank provides various banking services for individual clients, and small and middle-market businesses. The company offers checking and savings accounts. It also provides home loans and auto finan...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 22:14
End of Day Share Price2021/07/29 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.