Meridian Bank Net Income vs. Price To Earning

MRBK Stock  USD 17.08  0.18  1.07%   
Taking into consideration Meridian Bank's profitability measurements, Meridian Bank may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Meridian Bank's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2016-06-30
Previous Quarter
3.3 M
Current Value
4.7 M
Quarterly Volatility
2.8 M
 
Covid
At this time, Meridian Bank's Days Sales Outstanding is quite stable compared to the past year. EV To Sales is expected to rise to 2.01 this year, although the value of Operating Cash Flow Sales Ratio will most likely fall to 0.16. At this time, Meridian Bank's Income Before Tax is quite stable compared to the past year. Income Tax Expense is expected to rise to about 4.5 M this year, although the value of Net Income will most likely fall to about 13 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.10.1407
Way Down
Slightly volatile
Operating Profit Margin0.20.2914
Way Down
Slightly volatile
Pretax Profit Margin0.150.1803
Significantly Down
Slightly volatile
Return On Assets0.00780.0059
Significantly Up
Slightly volatile
Return On Equity0.07340.0838
Fairly Down
Very volatile
For Meridian Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Meridian Bank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Meridian Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Meridian Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Meridian Bank over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more information on how to buy Meridian Stock please use our How to buy in Meridian Stock guide.
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 Meridian Bank. If investors know Meridian 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 Meridian 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
0.2
Dividend Share
0.5
Earnings Share
1.01
Revenue Per Share
8.327
Quarterly Revenue Growth
0.062
The market value of Meridian Bank is measured differently than its book value, which is the value of Meridian that is recorded on the company's balance sheet. Investors also form their own opinion of Meridian Bank's value that differs from its market value or its book value, called intrinsic value, which is Meridian 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 Meridian Bank's market value can be influenced by many factors that don't directly affect Meridian 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 Meridian Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if Meridian Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Meridian 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.

Meridian Bank Price To Earning vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Meridian Bank's current stock value. Our valuation model uses many indicators to compare Meridian Bank value to that of its competitors to determine the firm's financial worth.
Meridian Bank is regarded fourth in net income category among its peers. It is rated below average in price to earning category among its peers . The ratio of Net Income to Price To Earning for Meridian Bank is about  2,185,314 . At this time, Meridian Bank's Net Income is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Meridian 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.

Meridian Price To Earning vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Meridian Bank

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
13.24 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Meridian Bank

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
6.06 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Meridian Price To Earning Comparison

Meridian Bank is currently under evaluation in price to earning category among its peers.

Meridian Bank Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Meridian Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Meridian Bank will eventually generate negative long term returns. The profitability progress is the general direction of Meridian Bank's change in net profit over the period of time. It can combine multiple indicators of Meridian 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-9.4 M-9 M
Operating Income27.4 M22.6 M
Income Before Tax17 M17.5 M
Net Income13.2 M13 M
Income Tax Expense3.7 M4.5 M
Net Income From Continuing Ops17.2 M15.2 M
Total Other Income Expense Net-10.4 M-9.9 M
Net Income Applicable To Common Shares25.1 M14.4 M
Net Interest Income70.5 M48.9 M
Interest Income128 M66.3 M
Change To Netincome72.7 M76.4 M
Net Income Per Share 1.19  1.02 
Income Quality 1.42  1.42 
Net Income Per E B T 0.78  0.57 

Meridian Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Meridian 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 Meridian 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 Meridian Bank's important profitability drivers and their relationship over time.

Use Meridian Bank in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Meridian Bank position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Meridian Bank will appreciate offsetting losses from the drop in the long position's value.

Meridian Bank Pair Trading

Meridian Bank Pair Trading Analysis

The ability to find closely correlated positions to Meridian Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Meridian Bank when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Meridian Bank - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Meridian Bank to buy it.
The correlation of Meridian Bank is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Meridian Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Meridian Bank moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Meridian Bank can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Meridian Bank position

In addition to having Meridian Bank in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Biotech
Biotech Theme
Companies specialized in biotechnology production and delivery of pharmaceuticals services. The Biotech theme has 38 constituents at this time.
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When determining whether Meridian Bank is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Meridian Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Meridian Bank Stock. Highlighted below are key reports to facilitate an investment decision about Meridian Bank Stock:
Check out Correlation Analysis.
For more information on how to buy Meridian Stock please use our How to buy in Meridian Stock guide.
You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
To fully project Meridian Bank's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Meridian Bank at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Meridian Bank's income statement, its balance sheet, and the statement of cash flows.
Potential Meridian Bank investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Meridian Bank investors may work on each financial statement separately, they are all related. The changes in Meridian Bank's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Meridian Bank's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.