Mercantile Bank Valuation
| MBWM Stock | USD 50.53 0.43 0.86% |
At this time, the firm appears to be overvalued. Mercantile Bank secures a last-minute Real Value of $43.76 per share. The latest price of the firm is $50.53. Our model forecasts the value of Mercantile Bank from analyzing the firm fundamentals such as Profit Margin of 0.36 %, return on equity of 0.15, and Current Valuation of 1.27 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Mercantile Bank's valuation include:
Price Book 1.3983 | Enterprise Value 1.3 B | Price Sales 3.6709 | Forward PE 11.6959 | Trailing PE 10.1875 |
Overvalued
Today
Please note that Mercantile Bank's price fluctuation is very steady at this time. Calculation of the real value of Mercantile Bank is based on 3 months time horizon. Increasing Mercantile Bank's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Mercantile stock is determined by what a typical buyer is willing to pay for full or partial control of Mercantile Bank. Since Mercantile Bank is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Mercantile Stock. However, Mercantile Bank's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 50.53 | Real 43.76 | Target 39.0 | Hype 51.14 | Naive 50.31 |
The intrinsic value of Mercantile Bank's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Mercantile Bank's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Mercantile Bank helps investors to forecast how Mercantile stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Mercantile Bank more accurately as focusing exclusively on Mercantile Bank's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Mercantile Bank's intrinsic value based on its ongoing forecasts of Mercantile Bank's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Mercantile Bank's closest peers.
Mercantile Bank Cash |
|
Mercantile Valuation Trend
Knowing Mercantile Bank's actual value is paramount for traders when making sound investment determinations. Using both Mercantile Bank's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Mercantile Revenue by Product
Mercantile Bank Total Value Analysis
Mercantile Bank is now anticipated to have valuation of 1.27 B with market capitalization of 815.65 M, debt of 606.52 M, and cash on hands of 284.01 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Mercantile Bank fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.27 B | 815.65 M | 606.52 M | 284.01 M |
Mercantile Bank Investor Information
About 64.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.4. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Mercantile Bank has Price/Earnings To Growth (PEG) ratio of 2.51. The entity last dividend was issued on the 6th of December 2024. The firm had 105:100 split on the 19th of April 2007. Based on the analysis of Mercantile Bank's profitability, liquidity, and operating efficiency, Mercantile Bank is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.45 | 0.4711 |
|
| |||||
| Total Cash From Operating Activities | 69.9 M | 66.6 M |
|
| |||||
| Operating Income | 56.7 M | 102.7 M |
|
|
Mercantile Bank Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Mercantile Bank has an asset utilization ratio of 4.07 percent. This suggests that the Company is making $0.0407 for each dollar of assets. An increasing asset utilization means that Mercantile Bank is more efficient with each dollar of assets it utilizes for everyday operations.Mercantile Bank Ownership Allocation
Mercantile Bank maintains a total of 16.14 Million outstanding shares. Over half of Mercantile Bank's outstanding shares are owned by institutional investors. These institutional investors are typically referred to as corporate investors that shop for positions in a given instrument to benefit from reduced trade commissions. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.Mercantile Bank Profitability Analysis
The company reported the previous year's revenue of 217.99 M. Net Income was 82.22 M with profit before overhead, payroll, taxes, and interest of 182.97 M.Mercantile Bank Past Distributions to stockholders
About Mercantile Bank Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Mercantile Bank. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Mercantile Bank based exclusively on its fundamental and basic technical indicators. By analyzing Mercantile Bank's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Mercantile Bank's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Mercantile Bank. We calculate exposure to Mercantile Bank's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Mercantile Bank's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 218 M | 228.9 M | |
| Pretax Profit Margin | 0.47 | 0.49 | |
| Operating Profit Margin | 0.47 | 0.45 | |
| Net Profit Margin | 0.38 | 0.40 |
A single share of Mercantile Bank represents a small ownership stake in the entity. As a stockholder of Mercantile, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Mercantile Bank Dividends Analysis For Valuation
As of the 29th of November 2024, Dividend Paid And Capex Coverage Ratio is likely to grow to 3.39, while Dividends Paid is likely to drop about 10.7 M. . At this time, Mercantile Bank's Retained Earnings are very stable compared to the past year. As of the 29th of November 2024, Retained Earnings Total Equity is likely to grow to about 261.2 M, while Earning Assets are likely to drop about 497.2 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 21 M | 10.7 M | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.26 | 0.22 | |
| Dividend Paid And Capex Coverage Ratio | 2.41 | 3.39 |
There are various types of dividends Mercantile Bank can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Mercantile shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Mercantile Bank directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Mercantile pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Mercantile Bank by the value of the dividends paid out.
Mercantile Bank Growth Indicators
Investing in growth stocks can be very risky. If the company such as Mercantile Bank does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 16 M | |
| Quarterly Earnings Growth Y O Y | -0.065 | |
| Forward Price Earnings | 11.6959 |
Mercantile Bank Current Valuation Indicators
Mercantile Bank's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Mercantile Bank's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Mercantile Bank, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Mercantile Bank's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Mercantile Bank's worth.When determining whether Mercantile Bank is a strong investment it is important to analyze Mercantile Bank's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Mercantile Bank's future performance. For an informed investment choice regarding Mercantile Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Mercantile Bank. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. To learn how to invest in Mercantile Stock, please use our How to Invest in Mercantile Bank guide.You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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 13.795 | 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.