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 last earnings update was 34 days ago.
Discounted Cash Flow Calculation for OTCPK:MNSB using Excess Returns Model Model
The calculations below outline how an intrinsic value for MainStreet Bancshares is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
MainStreet Bancshares's earnings available for a low price, and how does
this compare to other companies in the same industry?
MainStreet Bancshares's earnings are expected to grow significantly at over 20% yearly.
MainStreet Bancshares's revenue is expected to grow by 16.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
MainStreet Bancshares's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Fundamentally a bank's business is based upon borrowing and lending money, for
this reason they typically have high levels of debt and we analyse them
This treemap shows a more detailed breakdown of
MainStreet Bancshares's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Jeff 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 since joining it in April 2003. Mr. Dick is a co-founder of MainStreet. Mr. Dick served as the President of Mainstreet Bank and MainStreet Bancshares, Inc. from April 2003 to January 2017. From 1999 to January 2003, Mr. Dick served in various positions at Millennium Bank, N.A., including Executive Vice President. Prior to this, Mr. Dick was an advisor to the Bank of England and Financial Services Authority from 1996 to 1999. Mr. Dick began his banking career with the Office of the Comptroller of the Currency in 1983 as a Field Examiner and he became a Field Manager in Washington, D.C. in 1993. Mr. Dick serves as a Director of ICBA Bancard Inc. He serves as a member of the Independent Community Bankers of America’s (ICBA) Federal Delegate Board. He served as a Director of Millennium Bank, N.A. He was the Chairman of the Virginia Association of Community Banks (VACB). He is a Director of VACB. He served as director, Chief Lending Officer and Executive Vice President of another community bank. He is a Director the Dulles Regional Chamber of Commerce. Mr. Dick is a member of the Federal Reserve Board of Richmond’s Payments Advisory Counsel. Mr. Dick served on the Board of the Fairfax Law Foundation. He has a Diploma from the Imperial College London in Management and a B.S.B.A. in both Accounting and Management from the University of North Dakota. Mr. Dick earned his Executive M.B.A. (with distinction in Management) from the University of London Imperial College of Science, Technology and Medicine.
Jeff's compensation has been consistent with company performance over the past year.
Jeff's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the MainStreet Bancshares management team is about average.
Chairman of the Board & CEO
President & Director
Chief Technology Officer
Executive VP & Director of Business Development
Senior Vice President
Senior VP & Director of Payment Systems
Chief Lending Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the MainStreet Bancshares board of directors is less than 3 years, this suggests a new board.
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.
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