Mercantile Bank Corporation cash flow to debt ratio of 2.18% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Mercantile Bank Corporation's free cash flow has decreased 87.89% from $92.59M last year to $11.21M, signaling decreasing performance

Mercantile Bank Corporation's debt to equity ratio is 0.95, which means that the company's assets are unhealthy financed, signaling financial risk.

Mercantile Bank Corporation's debt has decreased relative to shareholder equity from 1.11 last year to 0.95 today, signaling strengthened financials

Mercantile Bank Corporation has a net cash position, so leverage is healthy.

Mercantile Bank Corporation earns at least as much interest as it pays. Interest obligations are fully covered.

Mercantile Bank Corporation's profit margin has increased (12.72%) in the last year from 21.99% to 24.79%, signaling increasing performance

Mercantile Bank Corporation's short-term liabilities of $5.52B exceed its short-term assets of $1.58B, signaling financial risk

Mercantile Bank Corporation's return on assets of 1.37% is lower than the 5.00% threshold, indicating inefficient asset utilization

Mercantile Bank Corporation's return on equity of 13.25%, is lower than 15.00%, indicating bad performance

Mercantile Bank Corporation's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Mercantile Bank Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Mercantile Bank Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Mercantile Bank Corporation has a free cash flow yield of 1.07%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Mercantile Bank Corporation's yearly earnings has increased 11.51% since last year from $79.59M to $88.75M, signaling increasing performance

Mercantile Bank Corporation's yearly revenue has increased 2.74% since last year from $361.89M to $371.80M, signaling increasing performance

ROIC 1.37% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Mercantile Bank Corporation's 3-year revenue CAGR of 20.23% is positive, indicating growing revenue over the past 3 years

Mercantile Bank Corporation had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Mercantile Bank Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Mercantile Bank Corporation has insufficient data to evaluate this check.

Mercantile Bank Corporation has an earnings yield of 9.11%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Mercantile Bank Corporation is overvalued relative to its fair value price of 22.75 based on EBITDA multiple model

Mercantile Bank Corporation has an EV/EBITDA ratio of 2.79x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Mercantile Bank Corporation is undervalued relative to its fair value price of 152.69 based on Earnings Fair Value model

Mercantile Bank Corporation has a PEG-ratio under 1 which is considered undervalued

Mercantile Bank Corporation has a price-to-book ratio of 1.42x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Mercantile Bank Corporation has a price-to-sales ratio of 2.72x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue