MetroCity Bankshares (MCBS) AI Stock Analysis

• Market Cap: $654.12M
• Dividend Yield: 3.34%
• Average Volume (3M): 38.41K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.24
• Revenue Growth: 11.80%
• EPS Growth: 24.53%
• Country: US
• Employees: 240
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 2.52
• Shares Outstanding: 25,402,782
• 10 Day Avg. Volume: 47,165
• 30 Day Avg. Volume: 38,412
• PEG Ratio: 0.42
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.90
• Price to Cash Flow (P/CF): 9.00
• P/FCF Ratio: 4.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $36.00
• Price Target Upside: 29.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

MetroCity Bankshares exhibits strong financial fundamentals, particularly in revenue growth and profitability. The strategic merger is a positive development, offering growth potential. However, technical indicators suggest caution due to bearish trends, and liquidity management needs improvement. The current valuation is reasonable but not overly attractive.

MetroCity Bankshares Business Overview & Revenue Model

Company Description

MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that provides banking products and services in the United States. It provides consumer and commercial checking accounts, savings accounts, certificates of deposits, money transfers, and other banking services. The company also offers construction and development, commercial real estate, commercial and industrial, single family residential mortgage, small business administration, and other consumer loans; and online banking, treasury management, wire transfer, automated clearing house, and cash management services. It serves small to medium-sized businesses, individuals, businesses, municipalities, and other entities. The company operates 19 full-service branch locations in Alabama, Florida, Georgia, New York, New Jersey, Texas, and Virginia. The company was founded in 2006 and is headquartered in Doraville, Georgia.

How the Company Makes Money

MetroCity Bankshares generates its revenue primarily through the interest income earned from its loan portfolio, which encompasses commercial real estate loans, residential mortgage loans, and consumer loans. The company also earns income from fees and service charges associated with its deposit accounts and other financial services. A key revenue stream is the net interest margin, which is the difference between the interest income generated by loans and the interest paid on deposits. Additionally, MetroCity Bankshares may engage in strategic partnerships or participate in syndicated loans to enhance its earnings potential. The bank's focus on multicultural communities often provides opportunities for niche market growth and customer loyalty, further contributing to its financial success.

MetroCity Bankshares Financial Statement Overview

Summary

MetroCity Bankshares shows strong financial performance with robust revenue growth and profitability supported by a debt-free balance sheet. However, liquidity challenges are notable due to declining operating cash flow.

Income Statement

MetroCity Bankshares demonstrates strong revenue growth with a substantial increase of 77.8% from 2023 to 2024. The net profit margin in 2024 stands at a healthy 30.3%, indicating efficient cost management and profitability. Despite a dip in EBIT margin from 59.2% in 2023 to 99.7% in 2024, the company maintains robust profitability margins, showcasing operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a zero debt-to-equity ratio in 2024, reflecting a debt-free status and strong financial stability. Return on equity is impressive at 15.3%, showing effective shareholder investment returns. The equity ratio of 11.7% suggests a solid equity position relative to total assets, although there is room for improvement in equity capitalization.

Cash Flow

Cash flow analysis reveals a decline in operating cash flow from $82 million in 2023 to $20.95 million in 2024, highlighting potential liquidity challenges. However, the company maintains positive free cash flow, which is crucial for sustaining operations and growth. The operating cash flow to net income ratio of 0.32 suggests the need for improved cash conversion efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
212.91M	119.70M	4.14M	137.97M	93.33M
	Gross Profit
212.91M	119.70M	4.14M	137.97M	93.33M
	EBIT
212.28M	71.97M	118.83M	82.62M	48.76M
	EBITDA
0.00	0.00	163.00K	85.49M	0.00
	Net Income Common Stockholders
64.50M	51.61M	62.60M	61.70M	36.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
253.73M	144.81M	170.21M	458.26M	158.86M
	Total Assets
3.59B	3.50B	3.43B	3.11B	1.90B
	Total Debt
382.94M	333.65M	384.28M	510.32M	121.39M
	Net Debt
146.60M	191.50M	233.31M	77.80M	-19.35M
	Total Liabilities
3.17B	3.12B	3.07B	2.82B	1.65B
	Stockholders Equity
421.35M	381.52M	352.41M	290.22M	244.83M
Cash Flow		Free Cash Flow
62.22M	77.17M	132.34M	65.05M	142.02M
	Operating Cash Flow
63.50M	82.10M	134.69M	65.43M	142.56M
	Investing Cash Flow
5.87M	-110.27M	-651.82M	-930.55M	-477.86M
	Financing Cash Flow
35.70M	-6.51M	255.27M	1.16B	209.58M

MetroCity Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCBS, the sentiment is Negative. The current price of 27.72 is above the 20-day moving average (MA) of 27.47, below the 50-day MA of 29.44, and below the 200-day MA of 29.88, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 41.29 is Neutral, neither overbought nor oversold. The STOCH value of 53.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCBS.

MetroCity Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFBC	71 Outperform	$2.18B	9.54	9.72%	4.15%	9.95%	-11.02%
SBCF	67 Neutral	$2.02B	16.57	5.64%	3.05%	5.40%	16.13%
SFNC	65 Neutral	$2.37B	15.56	4.39%	5.60%	6.86%	-12.06%
MCBS	64 Neutral	$654.12M	10.21	16.07%	3.34%	11.80%	24.53%
Sector *	63 Neutral	$14.39B	9.81	8.95%	4.37%	16.38%	-11.64%
CVBF	61 Neutral	$2.38B	11.86	9.35%	4.69%	2.84%	-9.63%
MSBI	54 Neutral	$339.00M	12.51	-1.83%	7.83%	3.95%	-135.44%

MetroCity Bankshares Corporate Events

Sam Sang-Koo Shim Resigns from MetroCity Bankshares Board

On March 19, 2025, Sam Sang-Koo Shim announced his resignation from the Board of Directors of MetroCity Bankshares, Inc. and its subsidiary, Metro City Bank, effective May 31, 2025. His departure is not due to any disagreements with the company’s management or policies, and he will also step down from several key committees, potentially impacting the company’s governance structure.

MetroCity Bankshares Announces Merger with First IC

On March 16, 2025, MetroCity Bankshares, Inc. and First IC Corporation announced a merger agreement, where First IC will merge into MetroCity, with MetroCity as the surviving entity. This strategic combination, valued at approximately $206 million, is expected to close in the fourth quarter of 2025, subject to regulatory and shareholder approvals. The merger will create a combined entity with significant strategic positioning, expected to deliver approximately 26% EPS accretion to MetroCity shareholders in the first full year, and enhance the competitive position of the combined bank.