MetroCity Bankshares (MCBS) AI Stock Analysis

• Market Cap: $742.13M
• Dividend Yield: 3.23%
• Average Volume (3M): 31.39K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.03
• Revenue Growth: 4.92%
• EPS Growth: 20.83%
• Country: US
• Employees: 240
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.65
• Shares Outstanding: 25,537,746
• 10 Day Avg. Volume: 27,165
• 30 Day Avg. Volume: 31,390
• PEG Ratio: 0.51
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 3.45
• P/FCF Ratio: 12.99
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 3.81
• Enterprise Value/Gross Profit: 6.22
• Enterprise Value/Ebitda: 9.68
• 1Y Price Target: $34.00
• Price Target Upside: 17.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $32.00 ▲(10.12% Upside)

MetroCity Bankshares is well-positioned with strong financial health and a reasonable valuation. The technical indicators suggest a neutral trend, with mild bullish momentum. The main risks are slowing revenue growth and declining free cash flow growth, which could impact future performance if not addressed.

Positive Factors

Financial Health

The company's robust financial health, characterized by solid profitability and efficient operations, provides a stable foundation for long-term growth and resilience against economic fluctuations.

Profitability

High profit margins indicate efficient cost management and strong pricing power, which can sustain profitability and support future investments in growth initiatives.

Cash Generation

Strong operating cash flow relative to net income highlights the company's ability to generate cash efficiently, ensuring liquidity and the capacity to fund operations and strategic investments.

Negative Factors

Revenue Growth

Slowing revenue growth may indicate market saturation or increased competition, potentially limiting the company's ability to expand its market share and drive future earnings growth.

Free Cash Flow

Negative free cash flow growth can constrain the company's financial flexibility, limiting its ability to invest in new opportunities or weather economic downturns without external financing.

Debt Levels

Rising debt levels can increase financial risk and interest obligations, potentially impacting cash flow and limiting the company's ability to invest in growth or respond to market changes.

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 revenue primarily through interest income from loans and fees associated with banking services. The bank earns interest on various types of loans, including personal loans, mortgages, and commercial loans, which typically have higher interest rates than the interest paid on customer deposits. Additionally, MCBS collects fees for services such as account maintenance, ATM usage, wire transfers, and overdraft protection. The bank may also earn revenue through investment activities and partnerships with third-party financial service providers, enhancing its overall earnings and diversifying its income streams.

MetroCity Bankshares Financial Statement Overview

Summary

MetroCity Bankshares presents a strong financial profile with high profitability and effective leverage management. Despite impressive revenue and profit growth, the company faces challenges with declining free cash flow and potential revenue volatility. Maintaining its financial stability and managing cash flows will be crucial for sustaining its growth trajectory.

Income Statement

MetroCity Bankshares shows robust profitability with a strong Gross Profit Margin of 90.2% and a solid Net Profit Margin of 31.5% for TTM. The Revenue Growth Rate is healthy at 75.7%, indicating significant expansion. EBIT and EBITDA margins are also impressive, reflecting efficient operations. However, the decline in revenue from the previous annual period suggests potential volatility.

Balance Sheet

The company maintains a moderate Debt-to-Equity Ratio of 1.01, indicating balanced leverage, and a strong Equity Ratio of 11.7%, highlighting a stable financial structure. With a Return on Equity of 15.5%, the company is generating decent returns for shareholders. However, the equity is relatively low compared to liabilities, which could pose a risk if not managed carefully.

Cash Flow

MetroCity Bankshares shows a reasonable Operating Cash Flow to Net Income Ratio of 0.59, suggesting effective cash generation relative to profits. The Free Cash Flow to Net Income Ratio is robust at 0.57, demonstrating good cash flow management. However, the Free Cash Flow Growth Rate is negative at -39.0%, indicating a decline from the previous year, which could affect future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	234.59M	234.43M	209.38M	162.29M	139.21M	102.96M
Gross Profit	143.75M	139.15M	118.05M	137.44M	127.71M	88.00M
EBITDA	92.43M	90.27M	74.66M	95.09M	85.43M	51.69M
Net Income	66.06M	64.50M	51.61M	62.60M	61.70M	36.39M
Balance Sheet
Total Assets	3.62B	3.59B	3.50B	3.43B	3.11B	1.90B
Cash, Cash Equivalents and Short-Term Investments	288.63M	253.73M	160.65M	170.21M	458.26M	158.86M
Total Debt	433.22M	382.94M	333.65M	384.28M	510.32M	121.39M
Total Liabilities	3.18B	3.17B	3.12B	3.08B	2.82B	1.65B
Stockholders Equity	436.10M	421.35M	381.52M	349.42M	290.22M	244.83M
Cash Flow
Free Cash Flow	33.27M	62.22M	77.17M	132.34M	65.05M	142.02M
Operating Cash Flow	34.14M	63.50M	82.10M	134.69M	65.43M	142.56M
Investing Cash Flow	-46.72M	5.87M	-110.27M	-651.82M	-930.55M	-477.86M
Financing Cash Flow	-29.27M	35.70M	-6.51M	255.27M	1.16B	209.58M

MetroCity Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 29.06 is below the 20-day moving average (MA) of 29.33, above the 50-day MA of 28.98, and below the 200-day MA of 29.15, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 22.67 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
OSBC	81 Outperform	$961.40M	9.97	12.51%	1.31%	2.02%	-2.80%
ESQ	79 Outperform	$834.30M	18.07	19.30%	0.69%	16.76%	12.84%
CPF	77 Outperform	$822.93M	13.66	11.16%	3.49%	2.81%	6.88%
MBWM	74 Outperform	$775.38M	9.49	13.77%	3.12%	8.72%	-0.45%
MCBS	73 Outperform	$742.13M	11.30	15.67%	3.23%	4.92%	20.83%
BFST	73 Outperform	$725.32M	9.72	10.18%	2.29%	16.88%	3.07%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

MetroCity Bankshares Corporate Events

MetroCity Bankshares Declares Quarterly Dividend Announcement

On July 16, 2025, MetroCity Bankshares, Inc. announced a quarterly cash dividend of $0.25 per share on its common stock, payable on August 8, 2025, to shareholders of record as of July 30, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and may positively impact investor confidence in the company’s financial stability and market position.

The most recent analyst rating on (MCBS) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on MetroCity Bankshares stock, see the MCBS Stock Forecast page.

MetroCity Bankshares Merger with First IC Approved

On March 16, 2025, MetroCity Bankshares, Inc. and First IC Corporation entered into a Reorganization Agreement, under which First IC will merge into MetroCity, with MetroCity as the surviving entity. By July 15, 2025, the merger received all necessary regulatory approvals and shareholder consent from First IC, with completion expected early in the fourth quarter of 2025, pending customary closing conditions.

The most recent analyst rating on (MCBS) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on MetroCity Bankshares stock, see the MCBS Stock Forecast page.

MetroCity Bankshares Appoints David Shim to Board

On June 18, 2025, MetroCity Bankshares appointed Mr. David Shim to its Board of Directors and the Board of its subsidiary, Metro City Bank. Mr. Shim, a software engineer and founder of DSS Consulting, brings a blend of software engineering and financial consulting experience to the role. His appointment is expected to enhance the company’s strategic alignment of technology and business. Mr. Shim will serve on several committees, including Audit and Compliance, and has been recognized as an independent director under Nasdaq standards.

The most recent analyst rating on (MCBS) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on MetroCity Bankshares stock, see the MCBS Stock Forecast page.