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

$62.14+0.81(0.01%)Market closed

Market Cap

$1.07B

P/E

11.2x

P/S

2.8x

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

GoodMetricSide Score: 75/100

Strongest: Profitability (23/25); weakest: Growth (16/25).

Profitability23/25

Growth16/25

Balance Sheet & Red Flags18/25

Cash & Earnings Quality18/25

Strengths

Rising free cash flowStrong marginsRising earningsLow leverage

Valuation vs. 5-year range

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

P/E · 11.2x5y range 8.5x – 14.1x

Currently near its 20-quarter median.

P/S · 2.8x5y range 1.9x – 3.6x

Currently near its 20-quarter median.

P/B · 1.4x5y range 1.1x – 1.7x

Watch items

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

High Risk

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.6x) — earnings may be inflated by non-cash items or aggressive accounting.

Cash Burn

Watch

FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.

Price & Volume

Market Cap $1.07B

Metrics at a Glance

as of June 2026

Revenue & Profit

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

TTM Revenue: $384.65M
Q. Revenue: $98.19M
TTM EBITDA: $120.00M
TTM Op. Income: $111.95M
Q. Op. Income: $31.18M
TTM Net Income: $95.21M
Q. Net Income: $25.93M
EPS: $1.5
Shares Out.: $17.28M

$384.65M in TTM revenue grew 4.5% YoY, reaching $98.19M last quarter. TTM EBITDA of $120.00M and TTM operating income of $111.95M show growth is flowing through to the bottom line. TTM net income of $95.21M 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: 70.0%
EBITDA Margin: 32.6%
Op. Margin: 31.8%
Net Margin: 26.4%

Op. margin of 31.8% is up 4.0% YoY — cost efficiency is improving. Net margin at 26.4% and gross margin of 70.0% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

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

P/E Ratio: 11.2x
P/S Ratio: 2.8x
P/B Ratio: 1.4x

At 11.2x P/E, the stock trades below typical market levels. P/S of 2.8x and P/B of 1.4x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 3 consecutive quarters — a weakening trend.

Assets & Liabilities

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

Total Assets: $6.82B
Cash: $340.93M
Long-Term Debt: $305.32M
Book Value: $755.12M
D/E Ratio: 0.4
Debt/EBITDA: 9.5

With $6.82B in assets and $305.32M in long-term debt, D/E is 0.4and book value is $755.12M — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 7 consecutive quarters — an improving trend.

Cash Flow

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

Op. Cash Flow: $15.27M
TTM Free Cash Flow: $68.20M
FCF Margin: 17.7%
FCF / Net Income: 0.7

TTM FCF of $68.20M on $15.27M in operating cash flow. The FCF / Net Income ratio of 0.7x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.