Latest Ratios: P/E Ratio 10.7x · EV/EBITDA 12.8x · ROE 13.6%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.0B | $782M | $718M | $647M | $531M | $560M | $442M | $598M | $469M | $583M | $615M |
| Enterprise Value | $1.4B | $1.1B | $973M | $1.4B | $1.1B | $278M | $376M | $868M | $894M | $767M | $783M |
| P/E Ratio → | 10.75 | 8.81 | 9.02 | 7.87 | 8.70 | 9.49 | 10.03 | 12.12 | 11.17 | 18.62 | 19.23 |
| P/S Ratio | 4.18 | 3.22 | 3.10 | 2.87 | 2.79 | 3.12 | 2.64 | 3.95 | 3.37 | 4.53 | 4.85 |
| P/B Ratio | 1.32 | 1.08 | 1.23 | 1.24 | 1.20 | 1.23 | 1.00 | 1.44 | 1.25 | 1.59 | 1.80 |
| P/FCF | 90.43 | 69.79 | 7.75 | 10.79 | 4.54 | 9.50 | 15.30 | 19.13 | 8.47 | 17.54 | 18.88 |
| P/OCF | 56.40 | 43.53 | 7.10 | 9.71 | 4.43 | 8.67 | 11.67 | 13.37 | 7.60 | 15.08 | 17.77 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.68 | 4.20 | 5.99 | 5.65 | 1.55 | 2.25 | 5.73 | 6.42 | 5.96 | 6.17 |
| EV / EBITDA | 12.83 | 10.66 | 8.94 | 11.84 | 12.11 | 3.18 | 5.85 | 12.40 | 14.51 | 13.60 | 13.87 |
| EV / EBIT | 13.38 | 11.12 | 9.90 | 13.17 | 14.18 | 3.77 | 6.85 | 14.36 | 17.24 | 16.65 | 16.70 |
| EV / FCF | — | 101.24 | 10.51 | 22.57 | 9.20 | 4.72 | 13.01 | 27.76 | 16.13 | 23.08 | 24.03 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 64.0% | 64.0% | 61.9% | 71.8% | 85.9% | 92.4% | 79.3% | 80.8% | 85.7% | 87.0% | 88.9% |
| Operating Margin | 27.5% | 27.5% | 27.2% | 33.8% | 35.4% | 37.1% | 28.3% | 32.6% | 32.2% | 31.9% | 33.6% |
| Net Profit Margin | 23.9% | 23.9% | 22.0% | 27.1% | 28.5% | 29.7% | 22.8% | 26.7% | 26.1% | 21.6% | 22.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.6% | 13.6% | 14.4% | 17.1% | 13.6% | 13.1% | 10.3% | 12.5% | 11.3% | 8.9% | 9.5% |
| ROA | 1.4% | 1.4% | 1.4% | 1.6% | 1.2% | 1.2% | 1.1% | 1.4% | 1.3% | 1.0% | 1.1% |
| ROIC | 5.5% | 5.5% | 5.7% | 6.3% | 5.1% | 5.1% | 4.3% | 5.1% | 4.8% | 4.8% | 5.4% |
| ROCE | 8.0% | 8.0% | 8.0% | 9.7% | 8.2% | 8.0% | 6.5% | 7.6% | 7.4% | 7.7% | 9.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.14 | 1.14 | 1.11 | 1.60 | 1.45 | 1.52 | 1.27 | 1.21 | 1.33 | 1.05 | 1.03 |
| Debt / EBITDA | 7.75 | 7.75 | 5.96 | 7.32 | 7.21 | 7.93 | 8.71 | 7.19 | 8.11 | 6.81 | 6.23 |
| Net Debt / Equity | — | 0.49 | 0.44 | 1.35 | 1.23 | -0.62 | -0.15 | 0.65 | 1.13 | 0.50 | 0.49 |
| Net Debt / EBITDA | 3.31 | 3.31 | 2.35 | 6.18 | 6.12 | -3.22 | -1.03 | 3.85 | 6.89 | 3.26 | 2.97 |
| Debt / FCF | — | 31.45 | 2.76 | 11.78 | 4.65 | -4.78 | -2.29 | 8.63 | 7.66 | 5.54 | 5.16 |
| Interest Coverage | 0.79 | 0.79 | 0.75 | 1.32 | 3.21 | 3.79 | 2.10 | 1.79 | 2.37 | 2.92 | 3.72 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.29 | 0.29 | 0.23 | 0.18 | 0.18 | 0.36 | 0.29 | 0.20 | 0.16 | 0.20 | 0.20 |
| Quick Ratio | 0.29 | 0.29 | 0.23 | 0.18 | 0.18 | 0.36 | 0.29 | 0.20 | 0.16 | 0.20 | 0.20 |
| Cash Ratio | 0.09 | 0.09 | 0.08 | 0.03 | 0.02 | 0.23 | 0.18 | 0.08 | 0.03 | 0.08 | 0.07 |
| Asset Turnover | — | 0.05 | 0.06 | 0.06 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.04 | 0.05 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 3.1% | 3.1% | 3.2% | 3.7% | 3.3% | 4.1% | 2.9% | 5.9% | 2.1% | 3.0% |
| Payout Ratio | 27.0% | 27.0% | 28.2% | 25.5% | 32.1% | 31.4% | 40.6% | 34.6% | 65.4% | 38.5% | 58.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.3% | 11.4% | 11.1% | 12.7% | 11.5% | 10.5% | 10.0% | 8.3% | 9.0% | 5.4% | 5.2% |
| FCF Yield | 1.1% | 1.4% | 12.9% | 9.3% | 22.0% | 10.5% | 6.5% | 5.2% | 11.8% | 5.7% | 5.3% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 3.8% | 1.5% | 1.2% | 1.3% | 0.0% | 0.6% |
| Total Shareholder Yield | 2.5% | 3.1% | 3.1% | 3.2% | 3.7% | 7.1% | 5.5% | 4.1% | 7.1% | 2.1% | 3.7% |
| Shares Outstanding | — | $16M | $16M | $16M | $16M | $16M | $16M | $16M | $17M | $16M | $16M |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying MBWM stock.
Mercantile Bank Corporation's current P/E ratio is 10.7x. The historical average is 13.6x. This places it at the 29th percentile of its historical range.
Mercantile Bank Corporation's current EV/EBITDA is 12.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.9x.
Mercantile Bank Corporation's return on equity (ROE) is 13.6%. The historical average is 7.8%.
Based on historical data, Mercantile Bank Corporation is trading at a P/E of 10.7x. This is at the 29th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Mercantile Bank Corporation's current dividend yield is 2.51% with a payout ratio of 27.0%.
Mercantile Bank Corporation has 64.0% gross margin and 27.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Mercantile Bank Corporation's Debt/EBITDA ratio is 7.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
CRE concentration and deposit repricing
Metrics are mathematically derived from official filings.
Premium Priced for Michigan Resilience
MBWM trades at 1.34x tangible book, a premium to peers like IBCP at 1.55x and UVSP at 1.27x, implying the market rewards its West Michigan franchise strength, as per reported multiples.
The P/B of 1.34x sits above the peer median, suggesting investors assign a premium for the bank's consistent profitability and low credit losses. However, the forward P/E of 10.84x is only slightly below the trailing 10.95x, indicating limited expected earnings growth despite the recent EPS beat. The PEG of 0.73x implies the stock is undervalued relative to its growth rate, but this hinges on sustained loan growth and stable margins.
ROE Stability Masks Fee Dependence
ROE has held near 3.5% for eight quarters, with a 0.8% NIM and 11.7% fee income, indicating profitability is stable but reliant on spread income, as per quarterly data.
The DuPont decomposition shows ROE is driven by a thin NIM of 0.8% and modest leverage (equity-to-assets at 11%), with fee income contributing only about 12% of revenue. The efficiency ratio improved to 38.3% in Q2 2026 from 43.0% in Q1, reflecting cost discipline, but the flat NIM suggests limited pricing power. ROA of 0.4% is below the peer average, indicating asset utilization is weak, though the bank compensates with lower credit costs.
NIM Flat, Efficiency Gains Offset
Net interest margin remained at 0.8% for five consecutive quarters, while the efficiency ratio improved to 38.3% in Q2 2026, indicating cost control is offsetting margin pressure, as per reported figures.
The stable NIM suggests loan yields are repricing in line with deposit costs, but the recent stabilization of the Fed funds rate may lead to a 'catch-up' in deposit costs, compressing margins. The efficiency ratio improvement from 43.0% to 38.3% in one quarter indicates strong operating leverage, but this may be unsustainable if revenue growth slows. Investors should monitor whether the flat NIM is masking underlying yield compression from commercial loan renewals.
Equity Buffer Strengthens on Retained Earnings
Equity-to-assets improved to 11.1% in Q2 2026 from 10.2% a year earlier, reflecting strong retained earnings and a conservative capital position, as per balance sheet data.
The rising equity ratio provides a cushion against potential credit losses and supports the bank's dividend, which yields 2.5%. However, the surge in investment securities to $6.4B may hide unrealized losses in the AFS portfolio, which could reduce tangible book value if rates rise. The bank's capital position appears adequate, but the lack of buybacks suggests management prioritizes organic growth and dividends over aggressive capital return.
Benign Credit, CRE Risk Lingers
Loan loss provisions were zero in Q2 2026, with minimal charge-offs, indicating a favorable credit environment, though CRE concentration remains a key vulnerability, as per reported data.
The zero provision in Q2 2026 and negative provision in Q1 2026 suggest the bank is releasing reserves, which may indicate improving credit quality or a conservative allowance built in prior periods. However, the bank's heavy concentration in commercial real estate, particularly in Michigan, could lead to stress if office or retail valuations decline. The benign credit metrics may not fully reflect the risk embedded in the CRE portfolio, warranting close monitoring.
P/E Misleads on Earnings Quality
The P/E of 10.95x understates earnings volatility from provisions and securities gains, obscuring the true profitability of the core lending franchise, as per reported financials.
For banks, P/E is often misapplied because earnings can be distorted by provision releases, securities gains, or one-time items. MBWM's zero provision in Q2 2026 flatters net income, but if credit costs normalize, the P/E would rise sharply. A better metric is P/TBV, which at 1.34x reflects the tangible book value and is less sensitive to earnings volatility. Investors should also adjust for AOCI unrealized losses in the AFS portfolio, which are not captured in P/E but can materially impact tangible book value.