Stock fact sheet · data as of
Mercantile Bank Corporation (MBWM): fair value, margin of safety and Wheel Score
Financial Services · Banks - Regional · United States · Value
Is MBWM undervalued?
MBWM closed at 58.32 on 16 Oct 2026 against a GLS average fair value of 64.51 - 9.6% below fair value, which our screens read as "fairly priced". 6 of 9 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
There is a wide gap between GLS Growth (5.42) and DCF (131.65). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files MBWM under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for MBWM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 131.65 | +126% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 73.70 | +26% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 94.34 | +62% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 24.80 | -57% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 5.42 | -91% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 98.25 | +68% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 68.21 | +17% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 22.95 | -61% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 61.30 | +5% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -262.34 | -550% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 64.00 | +10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Mercantile Bank Corporation scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability MBWM scores 6.4/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 5.7%, ROE 12.2%, ROA 1.3% - with debt at 1.14 times equity and a free-cash-flow yield of 6.8%.
The dividend yield is 2.67% at a payout ratio of 27%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Credit and Debit Card 41%, Service Charges on Deposit and Sweep Ac… 41%, Payroll Processing 15% (quarter Q4 FY2025).
Institutional ownership scores 9/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 5.7% |
|---|---|---|---|
| GLS Moat | 6.4 / 10 | ROE | 12.2% |
| Debt / equity | 1.14 | ROA | 1.3% |
| Free-cash-flow yield | 6.8% | Payout ratio | 27% |
| Institutions | 9 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 65: Good
With a Wheel Score of 65 - the Good band - Mercantile Bank Corporation falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 16/25, Health 11/20, Moat 10/15, Premium 20/20, Stability 8/20; Stability (8/20) scores lowest.
Implied volatility is 37% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 77 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 99k shares a day on a market cap of $1.0B, with a beta of 0.84; the Stability part of the Wheel Score gives that 8 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 16 / 25 | 10% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 10 / 15 | moat 6.4/10 | |
| Premium | 20 / 20 | implied volatility 37% | |
| Stability | 8 / 20 | 99k shares/day, $1.0B cap, beta 0.84 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Mercantile Bank Corporation reports earnings on 20 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to Mercantile Bank Corporation by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| WTBFA W.T.B. Financial Corporation | 680.60 | 726.82 | +6% | 39No options | $1.0B |
| CCNE CNB Financial Corporation | 33.88 | 40.53 | +16% | 68Good | $1.0B |
| BFST Business First Bancshares, Inc. | 31.13 | 39.14 | +20% | 73Good | $1.0B |
| CCNEP CNB Financial Corporation | 24.85 | 36.01 | +31% | 39No options | $1.0B |
| MCBS MetroCity Bankshares, Inc. | 34.77 | 32.11 | -8% | 55Fair | $1.0B |
| CFFN Capitol Federal Financial, Inc. | 8.24 | 8.90 | +7% | 73Good | $1.0B |
| FMCB Farmers & Merchants Bancorp | 1,435.00 | 2,561.57 | +44% | 39No options | $993M |
| HBNC Horizon Bancorp, Inc. | 19.33 | 14.53 | -33% | 45Weak | $992M |
| SBNCM Southern BancShares (N.C.), Inc. | 11.82 | 5,263.41 | +100% | 39No options | $1.0B |
| SBNC Southern BancShares (N.C.), Inc. | 13,500.00 | 26,359.95 | +49% | 39No options | $1.0B |
| SBNCN Southern BancShares (N.C.), Inc. PFD CL C | 12.00 | 5,263.69 | +100% | 39No options | $1.0B |
| EQBK Equity Bancshares, Inc. | 46.68 | 58.58 | +20% | 65Good | $961M |
⚖ Compare MBWM with 7 of them All Financial Services stocks →
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about MBWM
Is MBWM undervalued right now?
Not meaningfully: at 58.32 the stock trades within a few percent of the GLS average fair value of 64.51 (9.6% below fair value, data as of 16 Oct 2026).
What is the Wheel Score of MBWM and what does it mean?
MBWM scores 65 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for MBWM?
64.51 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Mercantile Bank Corporation report earnings next?
The next earnings report is due on 20 Oct 2026 (before the open), 4 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does MBWM have listed options, and how liquid are they?
Yes. The nightly snapshot found 118 listed contracts with 77 open interest across all expiries and implied volatility of 37% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.