Mountain Commerce Bancorp (MCBI) AI Stock Analysis

• Market Cap: $148.48M
• Dividend Yield: 1.12%
• Average Volume (3M): 11.48K
• Price to Earnings (P/E): 13.3
• Beta (1Y): -0.08
• Revenue Growth: 2.25%
• EPS Growth: 69.86%
• Country: US
• Employees: 108
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.62
• Shares Outstanding: 6,372,323
• 10 Day Avg. Volume: 1,044
• 30 Day Avg. Volume: 11,477
• PEG Ratio: 0.54
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 3.75
• P/FCF Ratio: 1.00K
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: 13.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ―

Mountain Commerce Bancorp's strength in profitability and low leverage are offset by declining revenue growth and cash flow challenges. Technical indicators signal caution due to bearish momentum and mixed signals. The fair valuation and dividend provide some positives, but the company must address revenue and cash flow issues to enhance its overall financial health.

Positive Factors

Profitability

A high net profit margin indicates efficient cost management and strong profitability, which can support long-term financial stability and growth.

Leverage

Low leverage enhances financial flexibility and reduces risk, enabling the company to better navigate economic fluctuations and invest in growth opportunities.

Return on Equity

Strong return on equity reflects efficient use of shareholders' funds, indicating effective management and potential for sustainable earnings growth.

Negative Factors

Revenue Growth

Negative revenue growth suggests challenges in market expansion or product demand, which can impact long-term profitability and market position.

Cash Flow

Zero free cash flow limits the company's ability to reinvest in growth, pay down debt, or return capital to shareholders, potentially affecting future financial health.

Equity Position

A modest equity position may limit the company's ability to absorb financial shocks and invest in strategic initiatives, impacting long-term resilience.

Mountain Commerce Bancorp Business Overview & Revenue Model

Company Description

Mountain Commerce Bancorp, Inc. operates as the holding company for Mountain Commerce Bank that provides banking services for small- and medium-sized businesses, professionals, and affluent individuals. It offers checking and savings accounts; certificates of deposit; and mortgage loans, personal loans and lines of credit, commercial real estate loans, small business administration loans, equipment lending, operating lines of credit, and credit cards. The company also provides private banking, free fraud monitoring, estatement, remote deposit capture, and online banking services; and treasury management solutions. In addition, it offers fee based investment management accounts, such as individual stocks, stock mutual funds, and stock exchange traded funds; individual bonds, bond mutual funds, and fixed income exchange traded funds; and 529 college funding plans, as well as traditional, roth, and simple IRA's. Further, the company provides retirement plan consulting services comprising 401(k) and 403(b) plan design review and search services, fiduciary, investment committee support and guidance, and participant education and newsletters; life insurance for individuals, groups, or estate planning strategies; disability insurance and long term care insurance; and financial planning products and services. It operates through six branches located in Brentwood, Erwin, Johnson City, Knoxville, and Unicoi. The company was founded in 1910 and is based in Knoxville, Tennessee.

How the Company Makes Money

Mountain Commerce Bancorp generates revenue primarily through its subsidiary, Mountain Commerce Bank, by offering a variety of financial products and services. The bank earns money from interest income on loans and securities, which is a significant revenue stream. Interest is collected from commercial and consumer loans, mortgages, and other credit products provided to customers. Additionally, the bank generates non-interest income through fees and charges related to deposit accounts, transaction processing, and other banking services. Wealth management and advisory services also contribute to the bank's earnings. The company's profitability is influenced by factors such as interest rate fluctuations, loan demand, and the overall economic environment in its operating regions.

Mountain Commerce Bancorp Financial Statement Overview

Summary

Mountain Commerce Bancorp shows strong profitability with a 24.75% net profit margin and low leverage with a debt-to-equity ratio of 0.26. However, revenue growth is negative, and cash flow management is a concern due to zero free cash flow in the latest period. The company needs to improve revenue and cash flow generation for better financial health.

Income Statement

Mountain Commerce Bancorp shows a stable income statement with a notable improvement in net income from the previous year. The gross profit margin is consistent as total revenue equals gross profit. The company has achieved a net profit margin of 24.75% for the latest period, which reflects strong profitability. However, the revenue growth rate is negative, indicating a decline in revenue compared to the previous year.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.26, indicating low leverage. The equity ratio of 7.58% suggests a modest level of equity financing. Return on equity is strong at 6.74%, showing effective use of equity. However, the company's equity position could be stronger to enhance financial stability.

Cash Flow

The cash flow statement shows challenges with free cash flow, which was zero for the latest period, indicating cash flow constraints. The operating cash flow to net income ratio is unavailable, creating uncertainty about cash flow quality. Historical data shows fluctuations in free cash flow, requiring attention to cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.22M	36.06M	33.02M	59.85M	50.06M	46.67M
Gross Profit	39.16M	36.06M	33.02M	46.98M	48.80M	30.36M
EBITDA	12.93M	11.50M	9.82M	24.41M	30.86M	13.60M
Net Income	10.07M	8.92M	6.91M	18.44M	23.62M	10.17M
Balance Sheet
Total Assets	1.81B	1.75B	1.74B	1.60B	1.33B	1.11B
Cash, Cash Equivalents and Short-Term Investments	234.33M	75.54M	199.10M	216.06M	224.78M	152.18M
Total Debt	70.00M	23.97M	129.92M	124.86M	96.82M	73.77M
Total Liabilities	1.67B	1.61B	1.61B	1.48B	1.21B	1.01B
Stockholders Equity	138.26M	132.35M	122.79M	117.27M	121.06M	103.84M
Cash Flow
Free Cash Flow	0.00	135.00K	-11.16M	3.19M	16.63M	18.66M
Operating Cash Flow	0.00	10.40M	8.31M	23.76M	22.90M	19.64M
Investing Cash Flow	0.00	0.00	-144.31M	-276.74M	-232.25M	-150.59M
Financing Cash Flow	0.00	-2.89M	126.24M	262.76M	203.32M	186.72M

Mountain Commerce Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCBI, the sentiment is Positive. The current price of 23.3 is above the 20-day moving average (MA) of 22.81, above the 50-day MA of 22.54, and above the 200-day MA of 20.63, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 80.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCBI.

Mountain Commerce Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBFG	78 Outperform	$148.14M	11.12	10.12%	2.53%	10.78%	21.72%
EBMT	75 Outperform	$154.67M	11.25	7.43%	2.98%	6.10%	59.32%
RMBI	72 Outperform	$150.38M	13.52	7.60%	4.21%	7.54%	25.25%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MCBI	61 Neutral	$148.48M	13.34	7.61%	1.12%	2.25%	69.86%
BCBP	58 Neutral	$145.58M	176.04	0.86%	7.62%	-8.73%	-95.86%