(MBWM) Mercantile Bank - Overview
Stock: Deposits, Loans, Mortgages, Insurance, Safe Deposit
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.24% |
| Yield on Cost 5y | 7.89% |
| Yield CAGR 5y | 6.18% |
| Payout Consistency | 85.5% |
| Payout Ratio | 27.5% |
| Risk 5d forecast | |
|---|---|
| Volatility | 33.3% |
| Relative Tail Risk | -13.0% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.41 |
| Alpha | 2.00 |
| Character TTM | |
|---|---|
| Beta | 0.739 |
| Beta Downside | 0.835 |
| Drawdowns 3y | |
|---|---|
| Max DD | 31.44% |
| CAGR/Max DD | 0.66 |
Description: MBWM Mercantile Bank January 26, 2026
Mercantile Bank Corporation (NASDAQ: MBWM) is a bank-holding company that operates Mercantile Bank, delivering commercial and retail banking services to U.S. small- and medium-size enterprises and individual customers. Its product suite spans deposit accounts (checking, savings, CDs, and time deposits), a broad array of loan types-including commercial & industrial, real-estate, construction, home-equity lines, consumer auto/boat loans, and credit cards-and ancillary services such as safe-deposit boxes, courier solutions, and a diversified portfolio of personal and small-business insurance policies.
As of Q4 2025, MBWM reported $5.2 billion in total assets, a loan-to-deposit ratio of 78 % (slightly below the regional-bank median of 84 %), and a net interest margin of 3.15 %, reflecting a modest compression from the 2023 peak as the Federal Reserve’s policy rate settled around 5.25 %. The bank’s CET1 capital ratio stood at 12.3 %, comfortably above the 10.5 % regulatory minimum, while return on equity (ROE) was 9.1 % year-over-year, indicating steady profitability despite a challenging credit-growth environment. Key sector drivers include the Fed’s interest-rate stance, which influences net interest income, and the health of the U.S. small-business sector-MBWM’s loan book is 42 % concentrated in this segment, making regional economic trends a material risk factor.
For a deeper, data-rich assessment of MBWM’s valuation dynamics, you may find ValueRay’s analytical tools useful.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: 88.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 0.53 > 1.0 |
| NWC/Revenue: -1060 % < 20% (prev -1021 %; Δ -38.57% < -1%) |
| CFO/TA 0.01 > 3% & CFO 72.2m > Net Income 88.8m |
| Net Debt (352.6m) to EBITDA (106.5m): 3.31 < 3 |
| Current Ratio: 0.29 > 1.5 & < 3 |
| Outstanding Shares: last quarter (16.3m) vs 12m ago 0.75% < -2% |
| Gross Margin: 64.03% > 18% (prev 0.62%; Δ 6341 % > 0.5%) |
| Asset Turnover: 5.77% > 50% (prev 5.98%; Δ -0.21% > 0%) |
| Interest Coverage Ratio: 0.60 > 6 (EBITDA TTM 106.5m / Interest Expense TTM 129.2m) |
Altman Z'' -3.39
| A: -0.58 (Total Current Assets 1.58b - Total Current Liabilities 5.52b) / Total Assets 6.84b |
| B: 0.06 (Retained Earnings 399.4m / Total Assets 6.84b) |
| C: 0.01 (EBIT TTM 77.4m / Avg Total Assets 6.44b) |
| D: 0.12 (Book Value of Equity 724.9m / Total Liabilities 6.11b) |
| Altman-Z'' Score: -3.39 = D |
What is the price of MBWM shares?
Over the past week, the price has changed by +5.25%, over one month by +12.20%, over three months by +21.85% and over the past year by +12.27%.
Is MBWM a buy, sell or hold?
- StrongBuy: 1
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the MBWM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 57 | 4.2% |
| Analysts Target Price | 57 | 4.2% |
| ValueRay Target Price | 65.2 | 19.2% |
MBWM Fundamental Data Overview February 02, 2026
P/E Forward = 10.8696
P/S = 3.7453
P/B = 1.232
P/EG = 2.51
Revenue TTM = 371.8m USD
EBIT TTM = 77.4m USD
EBITDA TTM = 106.5m USD
Long Term Debt = 405.7m USD (from longTermDebt, two quarters ago)
Short Term Debt = 232.3m USD (from shortTermDebt, last quarter)
Debt = 825.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 352.6m USD (from netDebt column, last quarter)
Enterprise Value = 143.4m USD (893.1m + Debt 825.9m - CCE 1.58b)
Interest Coverage Ratio = 0.60 (Ebit TTM 77.4m / Interest Expense TTM 129.2m)
EV/FCF = 2.20x (Enterprise Value 143.4m / FCF TTM 65.1m)
FCF Yield = 45.37% (FCF TTM 65.1m / Enterprise Value 143.4m)
FCF Margin = 17.50% (FCF TTM 65.1m / Revenue TTM 371.8m)
Net Margin = 23.87% (Net Income TTM 88.8m / Revenue TTM 371.8m)
Gross Margin = 64.03% ((Revenue TTM 371.8m - Cost of Revenue TTM 133.7m) / Revenue TTM)
Gross Margin QoQ = 65.77% (prev 64.76%)
Tobins Q-Ratio = 0.02 (Enterprise Value 143.4m / Total Assets 6.84b)
Interest Expense / Debt = 3.78% (Interest Expense 31.2m / Debt 825.9m)
Taxrate = 7.32% (1.80m / 24.6m)
NOPAT = 71.8m (EBIT 77.4m * (1 - 7.32%))
Current Ratio = 0.29 (Total Current Assets 1.58b / Total Current Liabilities 5.52b)
Debt / Equity = 1.14 (Debt 825.9m / totalStockholderEquity, last quarter 724.9m)
Debt / EBITDA = 3.31 (Net Debt 352.6m / EBITDA 106.5m)
Debt / FCF = 5.42 (Net Debt 352.6m / FCF TTM 65.1m)
Total Stockholder Equity = 655.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.38% (Net Income 88.8m / Total Assets 6.84b)
RoE = 13.54% (Net Income TTM 88.8m / Total Stockholder Equity 655.6m)
RoCE = 7.30% (EBIT 77.4m / Capital Employed (Equity 655.6m + L.T.Debt 405.7m))
RoIC = 6.36% (NOPAT 71.8m / Invested Capital 1.13b)
WACC = 6.17% (E(893.1m)/V(1.72b) * Re(8.64%) + D(825.9m)/V(1.72b) * Rd(3.78%) * (1-Tc(0.07)))
Discount Rate = 8.64% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.68%
[DCF Debug] Terminal Value 83.23% ; FCFF base≈49.2m ; Y1≈41.6m ; Y5≈31.6m
Fair Price DCF = 30.91 (EV 883.6m - Net Debt 352.6m = Equity 531.1m / Shares 17.2m; r=6.17% [WACC]; 5y FCF grow -18.65% → 2.90% )
EPS Correlation: 67.80 | EPS CAGR: 18.96% | SUE: 0.45 | # QB: 0
Revenue Correlation: 90.11 | Revenue CAGR: 21.35% | SUE: 3.56 | # QB: 3
EPS next Quarter (2026-03-31): EPS=1.33 | Chg30d=+0.045 | Revisions Net=+2 | Analysts=4
EPS current Year (2026-12-31): EPS=5.63 | Chg30d=+0.218 | Revisions Net=+4 | Growth EPS=+2.9% | Growth Revenue=+15.9%
EPS next Year (2027-12-31): EPS=5.91 | Chg30d=+0.144 | Revisions Net=+3 | Growth EPS=+5.0% | Growth Revenue=+4.7%