OTCPK:MCHB

Stock Analysis Report

Executive Summary

Mechanics Bank, together with its subsidiaries, provides various banking products and services for individuals and businesses in the state of California.


Snowflake Analysis

Flawless balance sheet with acceptable 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: MCHB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.0%

MCHB

-10.6%

US Banks

-4.1%

US Market


1 Year Return

-31.6%

MCHB

-33.7%

US Banks

-14.9%

US Market

Return vs Industry: MCHB matched the US Banks industry which returned -31.1% over the past year.

Return vs Market: MCHB underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

MCHBIndustryMarket
7 Day-7.0%-10.6%-4.1%
30 Day-31.0%-31.6%-19.1%
90 Day-36.9%-43.4%-23.4%
1 Year-31.6%-31.6%-31.8%-33.7%-13.2%-14.9%
3 Year-35.5%-35.5%-23.1%-28.7%10.7%3.5%
5 Year-24.1%-24.1%2.3%-9.4%28.5%14.5%

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?

10.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCHB ($20000) is trading above our estimate of fair value ($15902.42)

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 (10.6x) compared to the Banks industry average (8.8x).

PE vs Market: MCHB is good value based on its PE Ratio (10.6x) compared to the US market (12.9x).


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 (0.6x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

-2.1%

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.


Next Steps

  • Examine Mechanics Bank's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Mechanics Bank's filings and announcements here.
  • Explore growth companies in the Banks industry.

Past Performance

How has Mechanics Bank performed over the past 5 years?

63.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: MCHB has high quality earnings.

Growing Profit Margin: MCHB's current net profit margins (20.3%) are higher than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if MCHB's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare MCHB's past year earnings growth to its 5-year average.

Earnings vs Industry: MCHB earnings growth over the past year (63.4%) exceeded the Banks industry 10.9%.


Return on Equity

High ROE: MCHB's Return on Equity (6.1%) is considered low.


Next Steps

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

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

Debt Coverage by Assets: MCHB's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: MCHB has an appropriate level of bad loans (0.15%)


Next Steps

Dividend

What is Mechanics Bank's 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 payouts.

High Dividend: Unable to evaluate MCHB'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 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?

0.4yrs

Average management tenure


CEO

John DeCero (53yo)

0.42

Tenure

Mr. John W. DeCero serves as Chief Executive Officer at Mechanics Bank since November 2019 and served as its President from November 2019 to 2020. Mr. DeCero served as Co-President and Co-Chief Executive O ...


Leadership Team

NamePositionTenureCompensationOwnership
John DeCero
CEO & Director0.42yrno datano data
Nathan Duda
Chief Financial Officer4.25yrsno datano data
Christopher Pierce
Chief Operating Officer0.25yrno datano data
Glenn Shrader
General Counselno datano datano data
Kristie Shields
Chief Compliance Counselno datano datano data
David Louis
Director of Marketing0.25yrno datano data
Brett Reid
Chief Human Resources Officer1.25yrsno datano data
Gary Staring
Senior Vice Presidentno datano datano data
Pamela Tulley
Senior VP & Director of Internal Auditno datano datano data
David Wissinger
Senior Vice Presidentno datano datano data

0.4yrs

Average Tenure

Experienced Management: MCHB's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John DeCero
CEO & Director0.42yrno datano data
Carl Webb
Chairman of the Board5.25yrsno datano data
Gerald Ford
Director5.25yrsno datano data
Adrienne Crowe
Director6.75yrsno datano data
Edward Downer
Vice Chairman of the Board2.25yrsno datano data
Patricia Cochran-Bergman
Director13yrsno datano data
Kenneth Russell
Director5.25yrsno datano data
Jon Wilcox
Director3.5yrsno datano data
Meheriar Hasan
Director6.75yrsno datano data
Douglas Downer
Director7.25yrsno datano data

5.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MCHB's board of directors are considered experienced (5.3 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.


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$1.284b
  • Shares outstanding: 64.22k
  • Website: https://www.mechanicsbank.com

Location

  • Mechanics Bank
  • 1111 Civic Drive
  • Suite 385 & 333
  • Walnut Creek
  • California
  • 94596
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCHBOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMar 1994

Biography

Mechanics Bank, together with its subsidiaries, provides various banking products and services for individuals and businesses in the state of California. The company offers demand deposits, interest bearing transaction accounts, savings accounts, time deposits, and certificates of deposit; and commercial and industrial, commercial real estate, residential real estate, auto, installment, and consumer loans, as well as lease financing. It also engages in the origination, securitization, and servicing of new and preowned retail automobile sales contracts from franchised and independent automobile dealerships. The company operates 43 branch offices in California and 1 in Medford, Oregon. Mechanics Bank was founded in 1905 and is headquartered in Walnut Creek, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 00:34
End of Day Share Price2020/04/01 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.