Stock fact sheet · data as of
Mechanics Bank (MCHB): fair value, margin of safety and Wheel Score
Financial Services · Banks - Regional · United States · High Yield Income
Is MCHB undervalued?
At 14.34 (close of 16 Oct 2026), MCHB trades 40% below the GLS average fair value of 23.81. That average comes from 9 models run on the latest filings, and 6 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Mechanics Bank the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 9 models disagree widely: GLS Growth gives 3.54 while DCF gives 59.69. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files MCHB under High Yield Income: a dividend yield above 4%.
Nine valuation models for MCHB
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 | 59.69 | +316% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 17.76 | +24% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 34.02 | +137% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 12.25 | -15% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 3.54 | -75% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 28.46 | +98% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 22.11 | +54% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 22.95 | +60% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 13.45 | -6% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -83.87 | -685% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 17.00 | +19% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - MCHB passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.1 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 8.5%, ROE 9.3%, ROA 1.2% - with debt at 0.10 times equity and a free-cash-flow yield of 8.5%.
The dividend yield is high at 10.88% (payout ratio 108%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from All Other Segments 100% (quarter Q1 FY2013).
Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 8.5% |
|---|---|---|---|
| GLS Moat | 3.1 / 10 | ROE | 9.3% |
| Debt / equity | 0.10 | ROA | 1.2% |
| Free-cash-flow yield | 8.5% | Payout ratio | 108% |
| Institutions | 5 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 77: Good
MCHB scores 77 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (13/20), the GLS moat (5/15), the option premium on offer (20/20) and how easily the stock trades (14/20). Moat (5/15) is the part holding the score back.
Implied volatility is 47% 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 - 937 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 389k shares a day on a market cap of $3.2B, with a beta of 0.14 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 40% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 5 / 15 | moat 3.1/10 | |
| Premium | 20 / 20 | implied volatility 47% | |
| Stability | 14 / 20 | 389k shares/day, $3.2B cap, beta 0.14 |
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
Mechanics Bank reports earnings on 28 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 Mechanics Bank 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 |
|---|---|---|---|---|---|
| PRK Park National Corporation | 175.53 | 141.04 | -24% | 57Fair | $3.2B |
| CBU Community Bank System, Inc. | 59.67 | 82.02 | +27% | 85Prime | $3.1B |
| SFNC Simmons First National Corporation | 22.05 | 32.57 | +32% | 45Weak | $3.2B |
| TOWN TowneBank | 34.77 | 35.56 | +2% | 69Good | $3.2B |
| SBCF Seacoast Banking Corporation of Florida | 31.65 | 28.62 | -11% | 64Fair | $3.1B |
| FHB First Hawaiian, Inc. | 24.94 | 36.02 | +31% | 79Good | $3.0B |
| FFBC First Financial Bancorp. | 31.41 | 74.95 | +58% | 82Prime | $3.3B |
| FIBK First Interstate BancSystem, Inc. | 34.81 | 52.91 | +34% | 82Prime | $3.3B |
| BKU BankUnited, Inc. | 42.01 | 58.78 | +29% | 79Good | $3.0B |
| INTR Inter & Co, Inc. | 6.76 | 38.15 | +82% | 80Prime | $3.0B |
| NIC Nicolet Bankshares, Inc. | 164.41 | 177.31 | +7% | 65Good | $3.4B |
| PFS Provident Financial Services, Inc. | 21.96 | 38.16 | +42% | 84Prime | $2.9B |
⚖ Compare MCHB with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about MCHB
Is MCHB undervalued right now?
By the GLS models, yes: at 14.34 the stock is 40% below the average fair value of 23.81 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of MCHB and what does it mean?
MCHB scores 77 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 MCHB?
23.81 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 Mechanics Bank report earnings next?
The next earnings report is due on 28 Oct 2026 (before the open), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does MCHB have listed options, and how liquid are they?
Yes. The nightly snapshot found 178 listed contracts with 937 open interest across all expiries and implied volatility of 47% 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.