MetroCity Bankshares (MCBS) AI Stock Analysis

• Market Cap: $755.69M
• Dividend Yield: 3.05%
• Average Volume (3M): 42.34K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.03
• Revenue Growth: 10.06%
• EPS Growth: 30.39%
• Country: US
• Employees: 240
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.63
• Shares Outstanding: 25,401,508
• 10 Day Avg. Volume: 69,688
• 30 Day Avg. Volume: 42,335
• PEG Ratio: 4.42
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.13
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 5.96
• Enterprise Value/Ebitda: 2.45
• 1Y Price Target: $34.00
• Price Target Upside: 14.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $31.00 ▲(4.20%Upside)

MetroCity Bankshares has a solid financial foundation with strong profitability and revenue growth, but faces challenges with cash flow and potential revenue volatility. Technical analysis indicates some short-term weakness, while valuation metrics suggest a fair valuation. The recent strategic board appointment adds a positive dimension.

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 through a variety of financial services and products. The primary sources of income include interest income from loans and investments, and non-interest income from service charges, fees, and other banking services. The bank earns interest income by extending loans to individuals and businesses, including commercial real estate loans, construction loans, and consumer loans, and by investing in various securities. Non-interest income is generated through fees associated with deposit account services, transaction fees, and other ancillary financial services. The company's strategic focus on niche markets, particularly the Asian-American communities, allows it to capture a loyal customer base, enhancing its revenue potential. Additionally, MetroCity Bankshares leverages its local market expertise and customer relationships to drive growth and profitability.

MetroCity Bankshares Financial Statement Overview

Summary

MetroCity Bankshares demonstrates robust profitability with strong margins and significant revenue growth. However, challenges such as declining free cash flow and potential revenue volatility necessitate careful management to sustain growth.

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	234.48M	234.43M	209.38M	162.29M	139.21M	102.96M
Gross Profit	142.36M	139.15M	118.05M	137.44M	127.71M	88.00M
EBITDA	92.00M	90.27M	74.66M	95.09M	85.43M	51.69M
Net Income	66.17M	64.50M	51.61M	62.60M	61.70M	36.39M
Balance Sheet
Total Assets	3.66B	3.59B	3.50B	3.43B	3.11B	1.90B
Cash, Cash Equivalents and Short-Term Investments	287.74M	253.73M	160.65M	170.21M	458.26M	158.86M
Total Debt	432.96M	382.94M	333.65M	384.28M	510.32M	121.39M
Total Liabilities	3.23B	3.17B	3.12B	3.08B	2.82B	1.65B
Stockholders Equity	427.97M	421.35M	381.52M	349.42M	290.22M	244.83M
Cash Flow
Free Cash Flow	37.94M	62.22M	77.17M	132.34M	65.05M	142.02M
Operating Cash Flow	39.05M	63.50M	82.10M	134.69M	65.43M	142.56M
Investing Cash Flow	11.07M	5.87M	-110.27M	-651.82M	-930.55M	-477.86M
Financing Cash Flow	-23.91M	35.70M	-6.51M	255.27M	1.16B	209.58M

MetroCity Bankshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 29.75 is above the 20-day moving average (MA) of 28.31, above the 50-day MA of 28.27, and above the 200-day MA of 29.73, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 65.43 is Neutral, neither overbought nor oversold. The STOCH value of 81.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCBS.

MetroCity Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESQ	79 Outperform	$842.09M	18.85	19.66%	0.70%	16.18%	13.78%
OSBC	78 Outperform	$1.25B	10.31	12.98%	1.26%	2.27%	-6.70%
BFST	78 Outperform	$767.62M	10.62	9.77%	2.14%	18.39%	-4.12%
MBWM	73 Outperform	$794.88M	10.19	13.55%	2.97%	12.26%	-6.93%
CPF	71 Outperform	$787.70M	13.63	10.94%	3.70%	4.38%	4.94%
MCBS	70 Outperform	$755.69M	11.53	16.05%	3.05%	10.06%	30.39%
Sector *	67 Neutral	$16.89B	11.79	9.73%	3.75%	11.97%	-8.33%

MetroCity Bankshares Corporate Events

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.

MetroCity Bankshares Holds Annual Shareholder Meeting

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.

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.