tiprankstipranks
Trending News
More News >
MetroCity Bankshares Inc (MCBS)
NASDAQ:MCBS
Advertisement

MetroCity Bankshares (MCBS) AI Stock Analysis

Compare
32 Followers

Top Page

MCBS

MetroCity Bankshares

(NASDAQ:MCBS)

Rating:72Outperform
Price Target:
$32.00
â–²(12.32% Upside)
MetroCity Bankshares has a strong financial foundation with high profitability and effective leverage management. The stock's valuation is attractive, supported by a reasonable P/E ratio and a solid dividend yield. However, technical indicators suggest a neutral trend, and challenges with declining free cash flow and potential revenue volatility need to be addressed to maintain growth.

MetroCity Bankshares (MCBS) vs. SPDR S&P 500 ETF (SPY)

MetroCity Bankshares Business Overview & Revenue Model

Company DescriptionMetroCity 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 MoneyMetroCity 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
78
Positive
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
72
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue234.48M234.43M209.38M162.29M139.21M102.96M
Gross Profit142.36M139.15M118.05M137.44M127.71M88.00M
EBITDA92.00M90.27M74.66M95.09M85.43M51.69M
Net Income66.17M64.50M51.61M62.60M61.70M36.39M
Balance Sheet
Total Assets3.66B3.59B3.50B3.43B3.11B1.90B
Cash, Cash Equivalents and Short-Term Investments287.74M253.73M160.65M170.21M458.26M158.86M
Total Debt432.96M382.94M333.65M384.28M510.32M121.39M
Total Liabilities3.23B3.17B3.12B3.08B2.82B1.65B
Stockholders Equity427.97M421.35M381.52M349.42M290.22M244.83M
Cash Flow
Free Cash Flow37.94M62.22M77.17M132.34M65.05M142.02M
Operating Cash Flow39.05M63.50M82.10M134.69M65.43M142.56M
Investing Cash Flow11.07M5.87M-110.27M-651.82M-930.55M-477.86M
Financing Cash Flow-23.91M35.70M-6.51M255.27M1.16B209.58M

MetroCity Bankshares Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.49
Price Trends
50DMA
28.45
Positive
100DMA
27.93
Positive
200DMA
29.37
Positive
Market Momentum
MACD
0.12
Negative
RSI
64.03
Neutral
STOCH
76.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCBS, the sentiment is Positive. The current price of 28.49 is above the 20-day moving average (MA) of 28.19, above the 50-day MA of 28.45, and below the 200-day MA of 29.37, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 64.03 is Neutral, neither overbought nor oversold. The STOCH value of 76.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCBS.

MetroCity Bankshares Risk Analysis

MetroCity Bankshares disclosed 5 risk factors in its most recent earnings report. MetroCity Bankshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

MetroCity Bankshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$920.86M9.5512.51%1.37%2.02%-2.80%
79
Outperform
$817.57M17.7119.30%0.70%16.76%12.84%
77
Outperform
$770.59M12.7911.16%3.71%2.81%6.88%
74
Outperform
$763.36M9.3413.77%3.06%8.72%-0.45%
72
Outperform
$725.53M11.0515.67%3.29%4.92%20.83%
71
Outperform
$712.55M9.5510.18%2.34%16.88%3.07%
68
Neutral
$17.49B11.7010.34%3.85%9.75%0.63%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MCBS
MetroCity Bankshares
28.49
-0.25
-0.87%
CPF
Central Pacific Financial
29.41
2.79
10.48%
MBWM
Mercantile Bank
46.91
2.09
4.66%
OSBC
Old Second Bancorp
17.59
1.30
7.98%
ESQ
Esquire Financial Holdings
97.41
36.63
60.27%
BFST
Business First Bancshares
24.12
0.49
2.07%

MetroCity Bankshares Corporate Events

Dividends
MetroCity Bankshares Declares Quarterly Dividend Announcement
Positive
Jul 16, 2025

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.

M&A Transactions
MetroCity Bankshares Merger with First IC Approved
Neutral
Jul 15, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
MetroCity Bankshares Appoints David Shim to Board
Positive
Jun 18, 2025

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.

Executive/Board ChangesShareholder Meetings
MetroCity Bankshares Holds Annual Shareholder Meeting
Neutral
May 22, 2025

On May 22, 2025, MetroCity Bankshares held its Annual Meeting of Shareholders, where 83.97% of the outstanding common shares were represented. During the meeting, shareholders voted on several proposals, including the election of directors, executive compensation, and the appointment of auditors. The board decided to hold advisory votes on executive compensation every two years, aligning with shareholder preferences. The appointment of Crowe LLP as the independent auditor for 2025 was ratified.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025