Merchants & Marine Bancorp (MNMB) AI Stock Analysis

• Market Cap: $51.74M
• Dividend Yield: 3.68%
• Average Volume (3M): 139.00
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.23
• Revenue Growth: 2.98%
• EPS Growth: -21.84%
• Country: US
• Employees: 144
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 1,330,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 139
• PEG Ratio: -0.91
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 13.83
• Enterprise Value/Market Cap: 4.02
• Enterprise Value/Revenue: 4.25
• Enterprise Value/Gross Profit: 4.57
• Enterprise Value/Ebitda: 28.96
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $44.00 ▲(11.73% Upside)

Merchants & Marine Bancorp shows a strong valuation with an attractive P/E ratio and dividend yield, supported by positive technical indicators. However, financial performance is hindered by cash flow inconsistencies and fluctuating net income, which slightly dampens the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust business model and effective market strategies, supporting long-term financial stability.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial flexibility and reduces risk, allowing for potential reinvestment and growth opportunities.

Strong Capital Structure

A strong capital structure with a healthy equity ratio ensures stability and supports sustainable growth, enhancing investor confidence.

Negative Factors

Fluctuating Net Income

Fluctuating net income can indicate operational inefficiencies, potentially impacting profitability and long-term financial health.

Cash Flow Volatility

Volatile cash flow poses risks to liquidity management, potentially affecting the company's ability to fund operations and growth initiatives.

Declining Cash Reserves

Decreasing cash reserves may limit the company's ability to respond to market opportunities and challenges, impacting future growth.

Merchants & Marine Bancorp Business Overview & Revenue Model

Company Description

Merchants & Marine Bancorp, Inc. operates as the holding company for Merchants & Marine Bank that provides personal and business banking products and services in Jackson and George Counties, Mississippi, and Baldwin County in Alabama. The company offers checking and savings accounts, and individual retirement accounts, as well as certificates of deposit; and personal, auto, boat, recreation vehicle, mortgage, adjustable-rate mortgage, construction, home equity, equipment and machinery, inventory, real-estate, acquisition, and small business administration loans, as well as lines of credit. It also provides credit cards; and merchant, bill pay, remote deposit capture, ACH origination and notification, positive pay, online banking, e-statements, mobile banking, mobile deposit, mobile wallet, and card protect services. The company was founded in 1932 and is based in Pascagoula, Mississippi.

How the Company Makes Money

Merchants & Marine Bancorp generates revenue through various key streams, primarily from interest income on loans and other financial products. The company earns interest from personal, commercial, and real estate loans that it extends to customers. Additionally, MNMB benefits from non-interest income derived from service fees, account maintenance charges, and investment services. The bank may also engage in wealth management and financial advisory services, contributing to its revenue. Significant partnerships with local businesses and community organizations help expand its customer base and enhance its lending portfolio, further driving earnings.

Merchants & Marine Bancorp Financial Statement Overview

Summary

Merchants & Marine Bancorp demonstrates strong revenue growth and a solid balance sheet with no debt. However, the company faces challenges with fluctuating net income and cash flow inconsistencies. Strengthening operational efficiencies and cash flow management are vital for sustaining growth and financial health.

Income Statement

The income statement shows a solid growth trajectory with revenue increasing consistently over the years. Gross profit margin remains strong at 100% due to the nature of the banking industry. Net income, however, has seen fluctuations with a recent decrease in net profit margin from 14.8% in 2023 to 12.9% in 2024. The EBIT margin has slightly decreased, reflecting challenges in operational efficiency.

Balance Sheet

The balance sheet is robust, with no debt in the latest year, showcasing financial stability. The equity ratio is healthy at 17.6%, indicating a solid capital structure. The return on equity (ROE) has improved to 4.7% in 2024, reflecting effective use of shareholder funds. However, there is a declining trend in cash and short-term investments, which may need attention.

Cash Flow

Cash flow statements indicate volatility with free cash flow decreasing significantly. The operating cash flow to net income ratio is not available for 2024, suggesting operational challenges. The company needs to improve its cash generation capabilities. Historical free cash flow growth has been inconsistent, which poses a risk to liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.93M	49.44M	42.77M	31.72M	29.38M	28.36M
Gross Profit	45.51M	45.41M	40.74M	30.13M	25.83M	24.29M
EBITDA	7.19M	9.00M	9.17M	4.73M	4.21M	6.39M
Net Income	6.06M	5.94M	6.03M	2.97M	2.18M	4.02M
Balance Sheet
Total Assets	730.27M	716.86M	686.16M	686.47M	678.17M	649.99M
Cash, Cash Equivalents and Short-Term Investments	48.98M	37.48M	174.19M	197.01M	279.49M	237.21M
Total Debt	6.28M	4.72M	54.21M	4.70M	4.69M	4.43M
Total Liabilities	602.96M	590.81M	562.41M	565.58M	596.06M	568.18M
Stockholders Equity	127.31M	126.05M	123.75M	120.89M	82.11M	81.81M
Cash Flow
Free Cash Flow	0.00	4.06M	2.71M	1.83M	-610.74K	1.45M
Operating Cash Flow	0.00	7.58M	7.42M	4.09M	3.34M	4.04M
Investing Cash Flow	0.00	35.80M	34.81M	-160.19M	5.31M	36.90M
Financing Cash Flow	0.00	-77.72M	-6.12M	15.78M	33.12M	38.24M

Merchants & Marine Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNMB, the sentiment is Negative. The current price of 39.38 is above the 20-day moving average (MA) of 39.10, above the 50-day MA of 38.86, and above the 200-day MA of 39.32, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.68 is Neutral, neither overbought nor oversold. The STOCH value of 56.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNMB.

Merchants & Marine Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNMB	71 Outperform	$51.74M	10.85	4.46%	3.68%	2.98%	-21.84%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ASRV	66 Neutral	$54.52M	9.72	4.54%	3.87%	6.89%	―
CLST	65 Neutral	$63.97M	27.62	2.72%	―	76.66%	―