Mercantile Bank Return On Equity vs. Price To Book
| MBWM Stock | USD 44.49 0.19 0.43% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.15746009 | Current Value 0.17 | Quarterly Volatility 0.05941966 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.45 | 0.4711 |
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For Mercantile Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mercantile Bank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Mercantile Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mercantile Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mercantile Bank over time as well as its relative position and ranking within its peers.
Mercantile |
Mercantile Bank's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mercantile Bank. If investors know Mercantile will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mercantile Bank listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.07) | Dividend Share 1.4 | Earnings Share 4.96 | Revenue Per Share | Quarterly Revenue Growth 0.036 |
The market value of Mercantile Bank is measured differently than its book value, which is the value of Mercantile that is recorded on the company's balance sheet. Investors also form their own opinion of Mercantile Bank's value that differs from its market value or its book value, called intrinsic value, which is Mercantile Bank's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mercantile Bank's market value can be influenced by many factors that don't directly affect Mercantile Bank's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mercantile Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mercantile Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mercantile Bank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Mercantile Bank Price To Book vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Mercantile Bank's current stock value. Our valuation model uses many indicators to compare Mercantile Bank value to that of its competitors to determine the firm's financial worth. Mercantile Bank is regarded second in return on equity category among its peers. It is regarded third in price to book category among its peers fabricating about 8.24 of Price To Book per Return On Equity. At this time, Mercantile Bank's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Mercantile Bank by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Mercantile Price To Book vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Mercantile Bank |
| = | 0.15 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Mercantile Bank |
| = | 1.24 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Mercantile Price To Book Comparison
Mercantile Bank is currently under evaluation in price to book category among its peers.
Mercantile Bank Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Mercantile Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Mercantile Bank will eventually generate negative long term returns. The profitability progress is the general direction of Mercantile Bank's change in net profit over the period of time. It can combine multiple indicators of Mercantile Bank, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -50.5 M | -48 M | |
| Operating Income | 102.7 M | 56.7 M | |
| Income Before Tax | 102.7 M | 107.8 M | |
| Total Other Income Expense Net | 102.7 M | 107.8 M | |
| Net Income | 82.2 M | 86.3 M | |
| Income Tax Expense | 20.5 M | 21.5 M | |
| Net Income Applicable To Common Shares | 70.2 M | 73.7 M | |
| Net Income From Continuing Ops | 84 M | 44 M | |
| Non Operating Income Net Other | -2.7 M | -2.8 M | |
| Net Interest Income | 195.6 M | 142 M | |
| Interest Income | 255.8 M | 169.4 M | |
| Change To Netincome | 22.7 M | 23.8 M | |
| Net Income Per Share | 5.13 | 5.39 | |
| Income Quality | 0.81 | 0.73 | |
| Net Income Per E B T | 0.80 | 0.70 |
Mercantile Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Mercantile Bank. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Mercantile Bank position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Mercantile Bank's important profitability drivers and their relationship over time.