Mercantile Bank Corporation (MBWM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+120.2%

$134.74

vs $61.20 price

Levered DCF

$115.25

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

-0.39

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	8.81×	9.02×	7.87×	8.7×	9.49×	10.03×	12.12×	11.17×
P/B	1.08×	1.23×	1.24×	1.2×	1.23×	1×	1.44×	1.25×
P/S	2.1×	1.98×	2.13×	2.48×	2.82×	2.28×	3.23×	2.91×
EV / EBITDA	10.52×	8.94×	11.84×	12.11×	3.18×	5.85×	12.4×	14.51×
Gross margin	64.0%	61.9%	71.8%	85.9%	92.4%	79.3%	80.8%	85.7%
Operating margin	27.5%	27.2%	33.8%	35.4%	37.1%	28.3%	32.6%	32.2%
Net margin	23.9%	22.0%	27.1%	28.5%	29.7%	22.8%	26.7%	26.1%
Current ratio	0.29×	0.23×	0.18×	0.18×	0.36×	0.29×	0.2×	0.16×
Debt / equity	1.14×	1.11×	1.6×	1.45×	1.52×	1.27×	1.21×	1.33×
Interest coverage	0.79×	0.75×	1.32×	3.21×	3.79×	2.1×	1.79×	2.37×
Dividend yield	3.1%	3.1%	3.2%	3.7%	3.3%	4.1%	2.9%	5.9%
Payout ratio	27.0%	28.2%	25.5%	32.1%	31.4%	40.6%	34.6%	65.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.2%	13.6%	15.7%	13.8%	12.9%	10.0%	11.9%	11.2%
Return on invested capital	5.7%	5.9%	5.7%	5.6%	5.1%	4.4%	5.4%	4.8%
Return on assets	1.3%	1.3%	1.5%	1.3%	1.1%	1.0%	1.4%	1.2%
Free cash flow yield	1.4%	12.9%	9.3%	22.0%	10.5%	6.5%	5.2%	11.8%
Earnings yield	11.3%	11.1%	12.7%	11.5%	10.5%	10.0%	8.3%	9.0%
Enterprise value	$1.1B	$972.9M	$1.4B	$1.1B	$278.2M	$376M	$868.1M	$893.5M
Net debt / EBITDA	3.27×	2.35×	6.18×	6.12×	-3.22×	-1.03×	3.85×	6.89×
Cash conversion cycle (days)	0	0	0	-947	-594	-221	-230	-400