Mercantile Bank Corporation is in the banking industry and is in the financial services sector. The company CEO is Robert B. Kaminski. Mercantile Bank Corp is a bank holding company. It provides banking services offering deposit products including checking, savings, and term certificate accounts, and lending products including commercial, residential mortgage and installment loans.



Previous Intraday Performance:

The MBWM shares had a previous change of 2.31% which opened at 33.00 and closed at 33.68. It moved to an intraday high of 33.93 and a low of 32.64.

SeekingAlpha:  Mercantile Bank Corporation (MBWM) CEO Bob Kaminski on Q1 2019 Results – Earnings Call Transcript

Historical Performance:

Over the last five trading days, MBWM shares returned -0.65% and in the past 30 trading days it returned -0.30%. Over three months, it changed -0.38%. In one year it has changed -3.05% and within that year its 52-week high was 38.47 and its 52-week low was 26.40. MBWM stock is 27.58% above its 52 Week Low.

Our calculations result in a 200 day moving average of 32.89 and a 50 day moving average of 33.58. Right now, MBWM stock is trading 2.42% above its 200 day moving average and may be a good opportunity to buy.

SeekingAlpha:  Mercantile Bank beats by $0.02, beats on revenue

Liquidity:

The company has a market cap of $553.1m with 16.4m shares outstanding and a float of 15.7m shares. Trading volume was 47,231 shares and has experienced an average volume of 26,156 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Mercantile Bank Corporation was 2.54 which ended on 31st of December 2018, which according to the previous close, that is a PE of 13.26. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.59. The trailing twelve month EPS is 2.54, which comes to a trailing twelve month PE of 13.26. Historically, the PE high was 23.90 and the PE low was 9.40. If the stock reached its PE low, that would represent a price of 23.88, which is a decrease of -29.11%.

The dividend per share is currently 1.04, which is a dividend yield of 3.09%. Also, the payout ratio is 40.94%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 32.78, which means it might overvalued by -2.76%

The next earnings report will be: 05-09-2019



The long-term trend of the EPS is a vital number as it helps understand the future potential of Mercantile Bank Corporation; the EPS growth rate, as it is usually called, is typically displayed as a percentage, which at this time is hard to estimate, but revenue growth has been 7.30% over the last twelve months.

Indicators Also to Watch:

Based on the latest filings, there is 4.40% of insider ownership and 81.50% of institutional ownership.

I calculated the beta to be 0.85

PR Newswire:  Mercantile Bank Corporation Reports Strong First Quarter 2019 Results

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 11.43%, return on assets is 1.26%, profit margin is 25.74%, price-to-sales is 3.24 and price-to-book is 1.43.

Company Score Card:

Results are out of six:
 1  : Growth Expectations Result
 6  : Financial Safety Result
 3  : Past Performance Result
 1  : Valuation Result
 4  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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