MeritValue

MERCANTILE BANK CORP

MBWMdata completeness 63%17 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'

The thesis, from the filings

MERCANTILE BANK CORP earns about 28% on invested capital, with a roughly flat share count. The applicable estimate puts fair value near $50.79 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$143.5M1$181.8M2$271.4M3$321.5M3$330.2M3
Net income$59M4$61.1M5$82.2M6$79.6M6$88.8M6
Operating cash flow$64.6M7$119.9M8$66.6M9$101.1M9$18M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents—————
Diluted shares16.0M15.9M16.0M16.1M16.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$446.41
your share of equity
Profit it earned you last year
$54.66
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $446.41 of net worth that earned you $54.66 last year.

iii. Is this a good business?
Moat signal · return on invested capital
28% avg · 5y
FY21 16%FY22 18%FY23 28%FY24 40%FY25 36%

It earned an average 28% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+2% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$50.79
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$79.6M
  • growthAssumed0.0%
Graham Number
$74.12
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001437749-24-006268 (InterestAndDividendIncomeOperating)
  2. 10-K · period ending 2022-12-31 · accession 0001437749-25-005844 (InterestAndDividendIncomeOperating)
  3. 10-K · period ending 2023-12-31 · accession 0001437749-26-005997 (InterestAndDividendIncomeOperating)
  4. 10-K · period ending 2021-12-31 · accession 0001437749-24-006268 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001437749-25-005844 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001437749-26-005997 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001437749-24-006268 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001437749-25-005844 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001437749-26-005997 (NetCashProvidedByUsedInOperatingActivities)