MBWM Stock Analysis: Mercantile Bank | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 1.017m USD | 12M Return: 20.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 7.84M
EPS Trend: 49.2%
Qual. Beats: 1
Rev. Trend: 92.4%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Mercantile Bank Corporation (NASDAQ: MBWM) is a bank holding company headquartered in Grand Rapids, Michigan, that operates through its subsidiary, Mercantile Bank. Founded in 1997, the company provides commercial and retail banking services primarily to small- and medium-sized businesses and individuals across the United States.
Its deposit offerings include checking, savings, term certificate, and certificate of deposit accounts. On the lending side, the company provides a broad range of products, including commercial and industrial loans, residential construction loans, owner- and non-owner-occupied real estate loans, multi-family and residential rental property loans, single-family residential mortgages, home equity lines of credit, and consumer loans such as automobile, boat, and credit card financing. The company also offers ancillary services, including courier services, safe deposit boxes, and insurance products covering personal lines (auto, homeowners, life) and small business coverage.
As a regional bank, MBWM operates within the community banking model, where institutions focus on relationship-based lending and local deposit gathering rather than the large-scale, diversified operations of money-center banks. The GICS classifies it within the Financials sector, specifically the Regional Banks sub-industry.
- Net interest margin compresses as Fed cuts rates
- Commercial real estate and construction loan portfolio credit risk rises
- Deposit costs increase amid competitive Michigan banking market
| Net Income: 91.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -0.18 > 1.0 |
| NWC/Revenue: -1.44k% < 20% (prev -1.12k%; Δ -323.0% < -1%) |
| CFO/TA 0.01 > 3% & CFO 49.3m > Net Income 91.9m |
| Net Debt (654.8m) to EBITDA (111.2m): 5.89 < 3 |
| Current Ratio: 0.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (17.2m) vs 12m ago 6.42% < -2% |
| Gross Margin: 66.36% > 18% (prev 61.18%; Δ 5.18% > 0.5%) |
| Asset Turnover: 5.80% > 50% (prev 5.92%; Δ -0.12% > 0%) |
| Interest Coverage Ratio: 0.83 > 6 (EBIT TTM 105.3m / Interest Expense TTM 126.9m) |
| A: -0.79 (Total Current Assets 48.4m - Total Current Liabilities 5.52b) / Total Assets 6.95b |
| B: 0.06 (Retained Earnings 415.5m / Total Assets 6.95b) |
| C: 0.02 (EBIT TTM 105.3m / Avg Total Assets 6.54b) |
| D: 0.12 (Book Value of Equity 736.9m / Total Liabilities 6.21b) |
| Altman-Z'' = -4.74 = D |
As of July 08, 2026, the stock is trading at USD 57.41 with a total of 87,200 shares traded. Over the past week, the price has changed by +0.42%, over one month by +8.26%, over three months by +11.16% and over the past year by +20.92%.
Current recommended Stop Loss: 53.40 (which is 7% or 2.3 ATR below the current price).
Mercantile Bank has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold MBWM.
- StrongBuy: 1
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 59.8 | 4.2% |
P/E Trailing = 10.5556
P/E Forward = 10.8696
P/S = 4.0265
P/B = 1.3818
P/EG = 1.6313
Revenue TTM = 379.3m USD
EBIT TTM = 105.3m USD
EBITDA TTM = 111.2m USD
Long Term Debt = 392.8m USD (from longTermDebt, last quarter)
Short Term Debt = 219.5m USD (from shortTermDebt, last quarter)
Debt = 703.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 654.8m USD (calculated: Debt 703.3m - CCE 48.4m)
Enterprise Value = 1.67b USD (1.02b + Debt 703.3m - CCE 48.4m)
Interest Coverage Ratio = 0.83 (Ebit TTM 105.3m / Interest Expense TTM 126.9m)
EV/FCF = 38.81x (Enterprise Value 1.67b / FCF TTM 43.1m)
FCF Yield = 2.58% (FCF TTM 43.1m / Enterprise Value 1.67b)
FCF Margin = 11.36% (FCF TTM 43.1m / Revenue TTM 379.3m)
Net Margin = 24.23% (Net Income TTM 91.9m / Revenue TTM 379.3m)
Gross Margin = 66.36% ((Revenue TTM 379.3m - Cost of Revenue TTM 127.6m) / Revenue TTM)
Gross Margin QoQ = 71.27% (prev 65.77%)
Tobins Q-Ratio = 0.24 (Enterprise Value 1.67b / Total Assets 6.95b)
Interest Expense / Debt = 18.04% (Interest Expense 126.9m / Debt 703.3m)
Taxrate = 12.75% (13.4m / 105.3m)
NOPAT = 91.9m (EBIT 105.3m * (1 - 12.75%))
Current Ratio = 0.01 (Total Current Assets 48.4m / Total Current Liabilities 5.52b)
Debt / Equity = 0.95 (Debt 703.3m / totalStockholderEquity, last quarter 736.9m)
Debt / EBITDA = 5.89 (Net Debt 654.8m / EBITDA 111.2m)
Debt / FCF = 15.20 (Net Debt 654.8m / FCF TTM 43.1m)
Total Stockholder Equity = 687.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.40% (Net Income 91.9m / Total Assets 6.95b)
RoE = 13.36% (Net Income TTM 91.9m / Total Stockholder Equity 687.7m)
RoCE = 9.75% (EBIT 105.3m / Capital Employed (Equity 687.7m + L.T.Debt 392.8m))
RoIC = 1.33% (NOPAT 91.9m / Invested Capital 6.93b)
WACC = 11.63% (E(1.02b)/V(1.72b) * Re(8.78%) + D(703.3m)/V(1.72b) * Rd(18.04%) * (1-Tc(0.13)))
Discount Rate = 8.78% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 3.24%
[DCF] Terminal Value 62.46% ; FCFF base≈45.6m ; Y1≈40.9m ; Y5≈34.6m
[DCF] Fair Price = N/A (negative equity: EV 359.3m - Net Debt 654.8m = -295.5m; debt exceeds intrinsic value)
EPS Correlation: 49.16 | EPS CAGR: 2.60% | SUE: 2.34 | # QB: 1
Revenue Correlation: 92.41 | Revenue CAGR: 12.87% | SUE: 0.65 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.33 | Chg30d=+0.00% | Revisions=-57% | Analysts=6
EPS next Quarter (2026-09-30): EPS=1.40 | Chg30d=+0.00% | Revisions=-62% | Analysts=6
EPS current Year (2026-12-31): EPS=5.59 | Chg30d=+0.00% | Revisions=+0% | GrowthEPS=+2.2% | GrowthRev=+14.5%
EPS next Year (2027-12-31): EPS=5.91 | Chg30d=+0.00% | Revisions=-29% | GrowthEPS=+5.7% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: -55% (up=3, down=14)