MetroCity Bankshares (MCBS) AI Stock Analysis

• Market Cap: $813.77M
• Dividend Yield: 3.55%
• Average Volume (3M): 36.91K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.90
• Revenue Growth: -0.23%
• EPS Growth: 10.95%
• Country: US
• Employees: 240
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.68
• Shares Outstanding: 28,755,228
• 10 Day Avg. Volume: 42,724
• 30 Day Avg. Volume: 36,907
• PEG Ratio: 2.13
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 2.91
• P/FCF Ratio: 5.04
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 4.13
• Enterprise Value/Gross Profit: 6.62
• Enterprise Value/Ebitda: 10.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.05
• Revenue Forecast (FY): $209.10M

• Rating: 71 Outperform
• Price Target: $32.00 ▲(10.23% Upside)
• Action: Upgraded Date: 03/17/26
• Date: Action: Upgraded 03/17/26

The score is driven primarily by solid financial performance (strong growth and profitability, tempered by rising leverage and cash-flow variability) and attractive valuation (low P/E with a healthy dividend yield). Technicals are neutral with limited momentum, while the dividend-related corporate event is supportive but not transformative.

Positive Factors

Revenue growth and recent margin strength

Sustained revenue expansion and a large step-up in 2025, together with healthy 2024–2025 net margins, indicate a strengthening core franchise and rising loan and fee income. This durable top-line momentum supports scale, recurring earnings, and longer-term capital generation for growth and returns.

Strong operating cash generation in 2025

Operating cash flow's sharp rebound in 2025 and FCF tracking net income demonstrate the bank's ability to convert earnings into cash. Durable cash conversion supports dividend payments, funding of organic growth and acquisitions, and provides a buffer against short-term funding stress.

Completed acquisition expanding footprint

A completed acquisition reflects strategic inorganic growth to broaden customer relationships and assets. Integration can raise scale, diversify loan mix, and accelerate revenue synergies over multiple quarters, strengthening long-term competitive positioning in regional banking markets.

Negative Factors

Upward drift in leverage

Rising leverage alongside rapid asset expansion reduces financial flexibility and increases sensitivity to credit shocks or deposit stress. For a regional bank, higher leverage limits the cushion against loan losses and can constrain capital actions or growth if macro or credit conditions deteriorate.

Volatile cash flow history

Repeated year-to-year swings in free cash flow mean earnings are less predictable and can complicate capital planning. Volatility raises the risk of dividend pressure or constrained reinvestment in lean years, weakening the bank's ability to reliably fund growth or absorb shocks.

Margin compression from peak levels

Meaningful margin compression versus 2021–2022 peaks implies earnings are more exposed to net interest margin swings and fee volatility. Lower margin resiliency reduces the buffer against rising funding costs or higher credit provisions, pressuring long-term earnings stability.

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 earned on loans and mortgages issued to customers. The bank charges interest on various loan products, including personal loans, business loans, and home mortgages, which constitutes a significant portion of its earnings. Additionally, MCBS earns non-interest income through service fees associated with checking and savings accounts, transaction fees, and other ancillary services provided to customers. The bank may also engage in investment activities, generating earnings from securities and other financial instruments. Significant partnerships with local businesses and community organizations further enhance its customer base and contribute to its overall profitability.

MetroCity Bankshares Financial Statement Overview

Summary

Income statement strength (revenue growth with solid 2024–2025 margins) is partly offset by balance-sheet risk from rising leverage alongside rapid asset growth and somewhat volatile cash-flow consistency despite strong 2025 operating cash flow.

Income Statement

Revenue has grown strongly over the cycle (2020–2025), including a very large step-up in 2025, and profitability remains solid with healthy net margins in 2024–2025. That said, margins have compressed meaningfully from the exceptionally strong 2021–2022 levels, suggesting profitability is less resilient than it was earlier in the period.

Balance Sheet

The balance sheet shows moderate leverage for a regional bank, with debt roughly in line with equity in 2025 and improved versus the elevated leverage seen in 2021. Equity has expanded over time, supporting asset growth. The main watch-out is the upward drift in leverage from 2023 to 2025 alongside rapid asset growth, which can reduce flexibility if credit conditions weaken.

Cash Flow

Cash generation is a clear positive: free cash flow tracks net income closely across the period and operating cash flow is strong in 2025 with a sharp rebound from 2024. However, cash flow has been volatile year-to-year (including declines in free cash flow in 2021, 2023, and 2024), which tempers confidence in consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	237.03M	234.43M	209.38M	162.29M	139.21M
Gross Profit	146.97M	139.15M	118.05M	137.44M	127.71M
EBITDA	92.93M	90.27M	74.66M	95.09M	85.43M
Net Income	68.70M	64.50M	51.61M	62.60M	61.70M
Balance Sheet
Total Assets	4.77B	3.59B	3.50B	3.43B	3.11B
Cash, Cash Equivalents and Short-Term Investments	418.01M	253.73M	160.65M	170.21M	458.26M
Total Debt	540.61M	382.94M	335.46M	384.28M	510.32M
Total Liabilities	4.22B	3.17B	3.12B	3.08B	2.82B
Stockholders Equity	544.36M	421.35M	381.52M	349.42M	290.22M
Cash Flow
Free Cash Flow	137.01M	62.22M	77.17M	132.34M	65.05M
Operating Cash Flow	137.01M	63.50M	82.10M	134.69M	65.43M
Investing Cash Flow	-109.98M	5.87M	-110.27M	-651.82M	-930.55M
Financing Cash Flow	-27.84M	35.70M	-6.51M	255.27M	1.16B

MetroCity Bankshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 29.03 is above the 20-day moving average (MA) of 28.43, above the 50-day MA of 28.17, and above the 200-day MA of 27.55, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.90 is Neutral, neither overbought nor oversold. The STOCH value of 56.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MCBS.

MetroCity Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCBG	73 Outperform	$723.31M	11.80	11.55%	2.33%	9.43%	17.64%
MCBS	71 Outperform	$813.77M	10.05	15.62%	3.55%	-0.23%	10.95%
HAFC	71 Outperform	$768.54M	10.60	9.85%	3.82%	3.34%	15.52%
MBWM	71 Outperform	$868.48M	8.81	13.54%	3.05%	5.64%	6.24%
TRST	68 Neutral	$762.44M	12.35	8.86%	3.48%	5.75%	20.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HTB	62 Neutral	$709.30M	11.33	10.88%	1.12%	0.21%	14.54%

MetroCity Bankshares Corporate Events

MetroCity Bankshares Declares Quarterly Cash Dividend to Shareholders

On January 21, 2026, MetroCity Bankshares, Inc. announced that its board of directors declared a quarterly cash dividend of $0.25 per share on its common stock, payable on February 13, 2026, to shareholders of record as of February 4, 2026. The dividend declaration underscores the company’s ongoing return of capital to investors and signals continued confidence by the board in the bank’s financial position and ability to generate shareholder value.

The most recent analyst rating on (MCBS) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on MetroCity Bankshares stock, see the MCBS Stock Forecast page.