Mechanics Bank

OTCPK:MCHB Stock Report

Market Cap: US$1.7b

Mechanics Bank Valuation

Is MCHB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MCHB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MCHB ($26500) is trading below our estimate of fair value ($64303.67)

Significantly Below Fair Value: MCHB is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MCHB?

Key metric: As MCHB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MCHB. This is calculated by dividing MCHB's market cap by their current earnings.
What is MCHB's PE Ratio?
PE Ratio8.4x
EarningsUS$201.91m
Market CapUS$1.70b

Price to Earnings Ratio vs Peers

How does MCHB's PE Ratio compare to its peers?

The above table shows the PE ratio for MCHB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.3x
VBTX Veritex Holdings
18.6x16.1%US$1.6b
SRCE 1st Source
12.4x-1.3%US$1.6b
TCBK TriCo Bancshares
14x3.5%US$1.5b
STBA S&T Bancorp
12x-4.3%US$1.6b
MCHB Mechanics Bank
8.4xn/aUS$1.7b

Price-To-Earnings vs Peers: MCHB is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (14.3x).

Price to Earnings Ratio vs Industry

How does MCHB's PE Ratio compare vs other companies in the US Banks Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FRCB First Republic Bank
0.02xn/aUS$27.98m
BKGM BankGuam Holding
1xn/aUS$18.48m
SBNY Signature Bank
0.002xn/aUS$2.18m
BCBH.F Caribbean Investment Holdings
0.00001xn/aUS$132.00
No more companies available in this PE range
MCHB 8.4xIndustry Avg. 12.9xNo. of Companies75PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MCHB is good value based on its Price-To-Earnings Ratio (8.4x) compared to the US Banks industry average (12.9x).

Price to Earnings Ratio vs Fair Ratio

What is MCHB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MCHB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MCHB's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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