Mercantile Bank (MBWM) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Mercantile Bank

NasdaqGS•Financial Services•Banks - Regional

$60.21-0.44(-0.01%)Market open

Market Cap

$1.06B

P/E

11.1x

P/S

2.7x

P/B

1.4x

Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States. The company accepts various deposit products, such as checking, savings, and term certificate accounts; time deposits; and certificates of deposit. It also provides commercial and industrial loans; vacant land, land development, and residential construction loans; owner and non-owner occupied real estate loans; multi-family and residential rental property loans; single-family residential real estate loans; home equity line of credit programs; consumer loans, such as new and used automobile and boat loans, and credit cards, as well as overdraft protection services; and residential mortgage and instalment loans. In addition, the company offers courier services and safe deposit boxes; and insurance products, such as private passenger automobile, homeowners, personal inland marine, boat owners, recreational vehicle, dwelling fire, umbrella policies, small business, and life insurance products. Mercantile Bank Corporation was incorporated in 1997 and is headquartered in Grand Rapids, Michigan.

How this company scores

WeakMetricSide Score: 75/100

Grade capped at D — Interest coverage below 1× (1.0x) — earnings cannot cover interest. Strongest: Cash & Earnings Quality (21/25); weakest: Growth (16/25).

Profitability20/25

Growth16/25

Balance Sheet & Red Flags18/25

Cash & Earnings Quality21/25

Strengths

Rising free cash flowStrong marginsLow leverageProfit converts from growth

Grade capped at D

Interest coverage below 1× (1.0x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 11.1x5y range 8.2x – 13.7x

Currently near its 20-quarter median.

P/S · 2.7x5y range 1.9x – 3.5x

Currently near its 20-quarter median.

P/B · 1.4x5y range 1.1x – 1.6x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Price & Volume

Market Cap $1.06B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $391.19M
Q. Revenue: $102.57M
TTM EBITDA: $121.03M
TTM Op. Income: $113.46M
Q. Op. Income: $28.95M
TTM Net Income: $95.52M
Q. Net Income: $24.07M
EPS: $1.39
Shares Out.: $17.29M

$391.19M in TTM revenue grew 5.4% YoY, reaching $102.57M last quarter. TTM EBITDA of $121.03M and TTM operating income of $113.46M show growth is flowing through to the bottom line. TTM net income of $95.52M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 71.4%
EBITDA Margin: 29.1%
Op. Margin: 28.2%
Net Margin: 23.5%

Op. margin of 28.2% is down 0.4% YoY — costs are rising relative to revenue. Net margin at 23.5% and gross margin of 71.4% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 1% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 11.1x
P/S Ratio: 2.7x
P/B Ratio: 1.4x

At 11.1x P/E, the stock trades below typical market levels. P/S of 2.7x and P/B of 1.4x provide additional context. P/E sits below typical market levels while revenue is growing. Across the last 8 quarters, P/E has risen for 4 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $7.16B
Cash: $628.50M
Long-Term Debt: $305.32M
Book Value: $743.84M
D/E Ratio: 0.4
Debt/EBITDA: 10.2

With $7.16B in assets and $305.32M in long-term debt, D/E is 0.4and book value is $743.84M — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 22% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $47.06M
TTM Free Cash Flow: $93.25M
FCF Margin: 23.8%
FCF / Net Income: 1.0

TTM FCF of $93.25M on $47.06M in operating cash flow. The FCF / Net Income ratio of 1.0x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 3 consecutive quarters — an improving trend.