(MBWM) Mercantile Bank - Overview
Sector: Financial Services | Industry: Banks - Regional | Exchange: NASDAQ (USA) | Market Cap: 898m USD | Total Return: 21.7% in 12m
Avg Turnover: 5.11M
EPS Trend: 49.2%
Qual. Beats: 1
Rev. Trend: 92.4%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Mercantile Bank Corporation (MBWM) is a regional bank holding company based in Grand Rapids, Michigan. It provides a full spectrum of commercial and retail banking services, targeting small-to-medium-sized businesses and individual consumers. Its portfolio includes diverse deposit products, insurance offerings, and a lending suite ranging from commercial and industrial loans to residential mortgages and construction financing.
Operating within the regional banking sector, MBWM relies on a spread-based business model, generating revenue primarily through the difference between interest earned on loans and interest paid on deposits. Regional banks often maintain a competitive advantage through localized credit underwriting and deep ties to the economic health of specific geographic corridors, such as the Michigan market.
Evaluating the banks asset quality and net interest margin on ValueRay can provide deeper insight into its long-term stability.
- Net interest margin fluctuations driven by Federal Reserve monetary policy shifts
- Commercial and industrial loan growth within Michigan small business sectors
- Asset quality stability amid regional economic shifts and credit risk trends
- Non-interest income expansion through mortgage banking and insurance product sales
- Operational efficiency improvements via digital banking adoption and branch network optimization
| 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 0.61%; Δ 6.57k% > 0.5%) |
| Asset Turnover: 5.80% > 50% (prev 5.92%; Δ -0.12% > 0%) |
| Interest Coverage Ratio: 0.83 > 6 (EBITDA TTM 111.2m / 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 May 24, 2026, the stock is trading at USD 52.59 with a total of 172,103 shares traded.
Over the past week, the price has changed by +4.67%,
over one month by +3.53%,
over three months by +0.53% and
over the past year by +21.65%.
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 | 59.3 | 12.8% |
P/E Forward = 10.8696
P/S = 3.5555
P/B = 1.1924
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 = 1.55b USD (898.4m + Debt 703.3m - CCE 48.4m)
Interest Coverage Ratio = 0.83 (Ebit TTM 105.3m / Interest Expense TTM 126.9m)
EV/FCF = 36.04x (Enterprise Value 1.55b / FCF TTM 43.1m)
FCF Yield = 2.77% (FCF TTM 43.1m / Enterprise Value 1.55b)
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 = 0.22 (Enterprise Value 1.55b / Total Assets 6.95b)
Interest Expense / Debt = 18.04% (Interest Expense 126.9m / Debt 703.3m)
Taxrate = 16.85% (4.60m / 27.3m)
NOPAT = 87.6m (EBIT 105.3m * (1 - 16.85%))
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 = 1.27% (NOPAT 87.6m / Invested Capital 6.90b)
WACC = 11.77% (E(898.4m)/V(1.60b) * Re(9.24%) + D(703.3m)/V(1.60b) * Rd(18.04%) * (1-Tc(0.17)))
Discount Rate = 9.24% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 3.24%
[DCF] Terminal Value 62.02% ; FCFF base≈45.6m ; Y1≈40.9m ; Y5≈34.6m
[DCF] Fair Price = N/A (negative equity: EV 354.0m - Net Debt 654.8m = -300.9m; 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=-3.38% | Revisions=-50% | Analysts=6
EPS next Quarter (2026-09-30): EPS=1.40 | Chg30d=-3.57% | Revisions=-56% | Analysts=6
EPS current Year (2026-12-31): EPS=5.59 | Chg30d=-0.21% | Revisions=+0% | GrowthEPS=+2.2% | GrowthRev=+14.5%
EPS next Year (2027-12-31): EPS=5.91 | Chg30d=-1.01% | Revisions=-25% | GrowthEPS=+5.7% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: -56%