Mountain Commerce Bancorp (MCBI) AI Stock Analysis

• Market Cap: $158.66M
• Dividend Yield: 1.12%
• Average Volume (3M): 11.48K
• Price to Earnings (P/E): 13.6
• Beta (1Y): -0.10
• Revenue Growth: 2.25%
• EPS Growth: 69.86%
• Country: US
• Employees: 108
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.37
• Shares Outstanding: 6,384,568
• 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: 0.70
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 2.82
• Enterprise Value/Ebitda: 8.55
• 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: 59 Neutral
• Price Target: $24.00 ▲(1.48% Upside)

The score is primarily constrained by financial performance: while leverage improved materially and profitability is decent, the sharp revenue decline and inconsistent free cash flow signal volatility and weaker cash-quality fundamentals. Technicals add modest support with a mild uptrend, and valuation appears reasonable with a modest dividend yield.

Positive Factors

Balance Sheet Strength

A strong balance sheet with low debt-to-equity enhances financial stability and provides flexibility for future investments or downturns.

Profitability Improvement

Improved profitability and margins indicate better operational efficiency and potential for sustained earnings growth.

Merger Agreement

The merger with Home BancShares provides strategic access to growing markets, enhancing competitive positioning and growth prospects.

Negative Factors

Revenue Decline

A sharp decline in revenue suggests challenges in maintaining market share or demand, potentially affecting long-term growth.

Inconsistent Cash Flow

Inconsistent cash flow generation raises concerns about the company's ability to fund operations and investments sustainably.

Volatility in Earnings

Earnings volatility can undermine investor confidence and complicate strategic planning, affecting long-term stability.

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

Balance sheet strength is a key positive (debt-to-equity improved sharply to ~0.18 and equity increased). Offsetting this, 2024 revenue declined sharply versus 2023 and free cash flow was near break-even after a large negative prior year, indicating volatility and uneven cash conversion despite improved margins and higher earnings.

Income Statement

Profitability is still solid, with net margins around the mid‑20% range in 2024 (up versus 2023), and earnings rose from $6.9M (2023) to $8.9M (2024). However, the top line is the key concern: revenue declined sharply in 2024 versus 2023, and revenue is also well below the 2021–2022 peak levels, indicating meaningful volatility in the core earnings engine despite improved recent margins.

Balance Sheet

Balance sheet risk looks improved and relatively conservative in the latest year, with debt-to-equity dropping to ~0.18 in 2024 from ~1.06 in 2023, while equity also increased. Returns on equity are positive but modest (about 6.7% in 2024), and total assets have been fairly stable around $1.7B, suggesting steadier scale but not standout profitability on capital.

Cash Flow

Operating cash flow is positive and improved in 2024 ($10.4M vs. $8.3M in 2023), but cash conversion into free cash flow is weak: free cash flow was near break-even in 2024 (~$0.1M) after a large negative year in 2023 (about -$11.2M). Overall, cash generation quality looks inconsistent versus reported earnings, which raises questions about the durability of cash returns to shareholders.

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: 23.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 23.65 is below the 20-day moving average (MA) of 23.75, above the 50-day MA of 23.26, and above the 200-day MA of 21.14, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 66.51 is Neutral, neither overbought nor oversold. The STOCH value of 75.64 is Neutral, 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	75 Outperform	$139.89M	10.15	10.12%	2.69%	10.78%	21.72%
EBMT	75 Outperform	$184.97M	12.11	7.43%	2.93%	6.10%	59.32%
RMBI	69 Neutral	$150.17M	12.26	7.60%	4.29%	7.54%	25.25%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MCBI	59 Neutral	$158.66M	13.62	7.61%	1.12%	2.25%	69.86%
BCBP	56 Neutral	$141.62M	-9.78	0.86%	7.74%	-8.73%	-95.86%