MCBS

MetroCity Bankshares

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/17/26

Business Summary

MetroCity Bankshares operates as a regional bank, generating revenue primarily through net interest income on loans and deposits, supplemented by fee-based banking services. Its core engine is spread capture—borrowing via deposits and lending at higher yields—making balance sheet management and credit quality the central profit drivers. The competitive moat for a regional bank typically rests on local deposit relationships, underwriting discipline, and customer stickiness rather than scale dominance. Sustainable cash generation depends on maintaining loan performance, defending net interest margins, and efficiently managing capital in a highly regulated environment.

 


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VALUATION

P/E

11.8

Market Cap ($M USD)

$895

Forward P/E

9.5

PEG

1.2

PRICE TO SALES

5.3

PRICE TO BOOK

1.7

EV / EBITDA

-

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

3.20%

Annual Payout

$0.98

Payout Ratio

36.10%

Consecutive Years of Dividend Growth

5

5-Year Dividend Growth Rate

20.10%

Financial Health & Profitability

Earnings Per Share

$2.66

Next Year EPS Growth Estimate

$3.28

Next Year Revenue Growth Estimate

2.40%

Return on Equity (ROE)

12.60%

FREE CASH FLOW

Operating Margin

63.30%

Debt-to-Equity

1

Piotroski F-Score

3

Altman Z-Score

0.3

Return on Invested Capital (ROIC)

14.90%

Current Ratio

-

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 11.8x earnings and 9.5x Forward P/E, MCBS screens optically inexpensive, but the market is clearly pricing in risk, not growth. A PEG Forward of 1.2 suggests only modest growth relative to valuation, while the catastrophic Altman Z-Score of 0.3 signals extreme balance sheet fragility. The combination of a $895M market cap, weak 2.40% ROE, and a Piotroski F-Score of 3 reinforces that this is not a quality compounder but a stressed regional bank trading at a discount for a reason. The low forward multiple implies earnings recovery expectations, yet the credit model risk embedded in that Z-Score makes this a high-risk value play rather than a clean GARP opportunity. The market is not mispricing safety—it is discounting survival risk.

AI Exposure / Tech Reliance

As a regional bank in Financial Services, MCBS operates in an industry rapidly digitizing underwriting, fraud detection, and customer acquisition. Banks that successfully deploy AI can compress operating costs and improve credit screening, which could enhance the current 12.60% operating margin. However, smaller institutions often lack the scale to meaningfully invest in proprietary AI infrastructure, creating competitive pressure from larger banks.

The Bull Case

A deep value investor could argue the stock offers asymmetric upside if stabilization occurs. A Forward P/E of 9.5 combined with an estimated EPS Next Year of $2.66 suggests earnings normalization is expected, and if achieved, valuation could re-rate quickly. ROIC at 14.90% is notably strong relative to the weak 2.40% ROE, implying capital is being deployed into assets generating solid returns despite equity compression. A Price/Book of 1.7 is not distressed, but paired with a Price/Sales of 5.3, it indicates the market still assigns franchise value. If operating margin holds at 12.60% and institutional ownership at $32.00 remains supportive, a cyclical recovery trade could deliver outsized gains from these compressed multiples.

The Bear Case

The red flags are substantial. A Debt/Equity ratio of 63.30% combined with an Altman Z-Score of 0.3 screams balance sheet stress, and a Piotroski F-Score of 3 confirms deteriorating financial quality. Short interest at 20.10% of float is elevated, signaling sophisticated investors are actively betting against the name. The PEG Forward of 1.2 does not compensate for this level of financial risk, especially with ROE stuck at 2.40%, which is far below what a healthy regional bank should generate. Add in the ambiguous data points like a Payout Ratio of $0.98 and TTM Yield of 1, and the capital return story lacks clarity, increasing the probability that the dividend profile may not be durable.

Market Sentiment & Smart Money

Short Interest %

1.40%

Analyst Consensus

3

Average Analyst Price Target

$32.00

Institutional Ownership %

22.70%

1-Year Beta

0.7

Insider Buying % (6 Mo)

21.90%%

Distance to 52-Week High

99.00%

Distance to 52-Week Low

127.00%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.