MBWM Stock Analysis: Mercantile Bank | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 1.031m USD | 12M Return: 35.1% | US5873761044 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 6.45M
EPS Trend: 60.1%
Qual. Beats: 2
Rev. Trend: 92.5%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 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: 95.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 0.50 > 1.0 |
| NWC/Revenue: -1.12k% < 20% (prev -1.13k%; Δ 9.97% < -1%) |
| CFO/TA 0.01 > 3% & CFO 72.3m > Net Income 95.2m |
| Net Debt (-507.7m) to EBITDA (116.7m): -4.35 < 3 |
| Current Ratio: 0.22 > 1.5 & < 3 |
| Outstanding Shares: last quarter (17.3m) vs 12m ago 6.40% < -2% |
| Gross Margin: 67.99% > 18% (prev 62.03%; Δ 5.96% > 0.5%) |
| Asset Turnover: 5.91% > 50% (prev 5.96%; Δ -0.05% > 0%) |
| Interest Coverage Ratio: 0.89 > 6 (EBIT TTM 110.5m / Interest Expense TTM 123.8m) |
| A: -0.63 (Total Current Assets 1.20b - Total Current Liabilities 5.51b) / Total Assets 6.82b |
| B: 0.06 (Retained Earnings 434.8m / Total Assets 6.82b) |
| C: 0.02 (EBIT TTM 110.5m / Avg Total Assets 6.50b) |
| D: 0.12 (Book Value of Equity 755.1m / Total Liabilities 6.06b) |
| Altman-Z'' = -3.70 = D |
As of September 27, 2026, the stock is trading at USD 60.03 with a total of 91,155 shares traded. Over the past week, the price has changed by +0.00%, over one month by +0.17%, over three months by +7.38% and over the past year by +35.11%.
Current recommended Stop Loss: 58.30 (which is 2.9% or 1.3 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 | 63.2 | 5.2% |
P/E Trailing = 10.4868
P/E Forward = 10.8696
P/S = 3.9084
P/B = 1.3739
P/EG = 1.6313
Revenue TTM = 384.0m USD
EBIT TTM = 110.5m USD
EBITDA TTM = 116.7m USD
Long Term Debt = 370.6m USD (from longTermDebt, last quarter)
Short Term Debt = 217.5m USD (from shortTermDebt, last quarter)
Debt = 687.7m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -507.7m USD (calculated: Debt 687.7m - CCE 1.20b)
Enterprise Value = 523.8m USD (1.03b + Debt 687.7m - CCE 1.20b)
Interest Coverage Ratio = 0.89 (Ebit TTM 110.5m / Interest Expense TTM 123.8m)
EV/FCF = 7.68x (Enterprise Value 523.8m / FCF TTM 68.2m)
FCF Yield = 13.02% (FCF TTM 68.2m / Enterprise Value 523.8m)
FCF Margin = 17.76% (FCF TTM 68.2m / Revenue TTM 384.0m)
Net Margin = 24.79% (Net Income TTM 95.2m / Revenue TTM 384.0m)
Gross Margin = 67.99% ((Revenue TTM 384.0m - Cost of Revenue TTM 122.9m) / Revenue TTM)
Gross Margin QoQ = 70.02% (prev 71.27%)
Tobins Q-Ratio = 0.08 (Enterprise Value 523.8m / Total Assets 6.82b)
Interest Expense / Debt = 18.01% (Interest Expense 123.8m / Debt 687.7m)
Taxrate = 13.87% (15.3m / 110.5m)
NOPAT = 95.2m (EBIT 110.5m * (1 - 13.87%))
Current Ratio = 0.22 (Total Current Assets 1.20b / Total Current Liabilities 5.51b)
Debt / Equity = 0.91 (Debt 687.7m / totalStockholderEquity, last quarter 755.1m)
Debt / EBITDA = -4.35 (Net Debt -507.7m / EBITDA 116.7m)
Debt / FCF = -7.44 (Net Debt -507.7m / FCF TTM 68.2m)
Total Stockholder Equity = 718.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.46% (Net Income 95.2m / Total Assets 6.82b)
RoE = 13.25% (Net Income TTM 95.2m / Total Stockholder Equity 718.6m)
RoCE = 10.15% (EBIT 110.5m / Capital Employed (Equity 718.6m + L.T.Debt 370.6m))
RoIC = 6.33% (NOPAT 95.2m / Invested Capital 1.50b)
WACC = 11.17% (E(1.03b)/V(1.72b) * Re(8.28%) + D(687.7m)/V(1.72b) * Rd(18.01%) * (1-Tc(0.14)))
Discount Rate = 8.28% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 76.77 | Cagr: 3.08%
[DCF] Terminal Value 69.40% ; FCFF base≈53.3m ; Y1≈61.1m ; Y5≈89.9m
[DCF] Fair Price = 81.51 (EV 901.3m - Net Debt -507.7m = Equity 1.41b / Shares 17.3m; r=11.17% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 60.06 | EPS CAGR: 3.95% | SUE: 3.68 | # QB: 2
Revenue Correlation: 92.54 | Revenue CAGR: 9.92% | SUE: 0.65 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.35 | Chg30d=-0.49% | Revisions=-67% | Analysts=6
EPS current Year (2026-12-31): EPS=5.68 | Chg30d=-0.06% | Revisions=+62% | GrowthEPS=+3.9% | GrowthRev=+15.0%
EPS next Year (2027-12-31): EPS=5.75 | Chg30d=+0.32% | Revisions=-62% | GrowthEPS=+1.2% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: -32% (up=5, down=11)