QualityDipStocks / Finance · Major Banks
Mechanics Bancorp MCHB
Outside our quality screen, so we don’t track its dips. It’s 12% below its 52-week high.
Outside our quality screen, trading above our fair value estimate.
Worth knowing
- Dividend yield 9.1%, top 2% of the 1731 we measure
From the data on this page, as of the last close. How we pick these
- Fair value est.
- $11.71−22%
- Market Value
- forming
- Off 52-wk high
- −12%
- Risk vs market
- Lowbeta 0.51
4 bullish · 3 bearish See why
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
52-wk high: P/E 13.6×; now: P/E 11.9×.
| High | Now | |
|---|---|---|
| Price | $17.17Aug 11 | $15.05 |
| P/E | 13.6× | 11.9× |
What this means: a lower P/E than at the high means you pay less for each dollar of profit than buyers did then.
How it’s computed
Banks, insurers and lenders: cash flow includes deposits and loans, so a cash-flow model doesn't fit; we show P/E at each point instead. P/E = that day's close × diluted shares / 12-month net income, using only the filings that were public on that day.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Financials model (residual income). Same residual-income model as the base: cost of equity 9.5% ±1 point and return on equity 9.0% ±2 points. Bear = 10.5% and 7.0%; bull = 8.5% and 11.0%. A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, MCHB would need a return on equity of about 12% a year; our estimate uses 9%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much MCHB moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.2× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.51
- Volatility
- 28% vs 13% SPY
- Correlation SPY
- 0.23
- Correlation QQQ
- 0.09
How it ranks
Where MCHB stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Top quarter on 2 of 3 measures
- Discount to fair value estimate22% · price above our base caseLowest 34%of 1,314
- Dividends + buybacks yield9.1% · cash paid out or used to retire shares, vs market capTop 8%of 1,836
- Revenue growth, last 12 months+56% · vs the 12 months beforeTop 6%of 1,814
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $11.71
Financials model (residual income): book value $12.17 a share on Jun 30, 2026, plus the earnings above a 9.5% cost of equity. ROE 9.0%, the average of 10.8% for the trailing 12 months to Jun 30, 2026 and 7.2% over fiscal 2021–2025, on average common equity; payout 100% of earnings (dividends 108%; capped at 100%), so book grows by the retained rest; the return above 9.5% fades halfway toward 9.5% over 10 years, then grows at 3% (terminal value). From the 10-Q filed Aug 7, 2026.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
GrowthSales grew 56% to $916M over the last 12 months vs the 12 months before (SEC filings).
GrowthSales compounded 42% a year from FY2022 to FY2025.
Cash returnsDividend yield of 9.1% ($303M paid over 12 months).
ProfitabilityReturn on equity of 18% over the last 12 months, up 14 points in two years.
Top bearish points 3 of 5
ValuationOur residual-income fair value estimate is $11.71, 22% below the price.
Cash returnsShare count up 10.1% in a year: existing holders are being diluted.
Cash returnsPays out more in dividends than it earns: $303M paid vs $281M of net income.
All fundamentals
P/E 11.9 · ROE 18% · Sales +56%
Valuation
- P/E
- 11.9×Finance median 13.6×
- Price / FCF
- n/acash flow isn't a clean measure for a bank
- FCF yield
- n/acash flow isn't a clean measure for a bank
- EV / EBITDA
- n/anot meaningful for a bank
- Price / sales
- 3.65×
- Price / book
- 1.24×
- Market cap
- $3.3Bprice × diluted shares
- Enterprise value
- $3.0B
Growth
- Revenue, 12 months
- $916Mnet interest income + noninterest income
- Sales growth, 12 months
- +55.7%vs the 12 months before
- Sales growth, 3 yrs
- +41.6%/yrfrom FY2022
- Diluted EPS, 12 months
- $1.30
- EPS growth, last FY
- n/an/m: EPS a year ago near zero
- Net income, 12 months
- $281M
- Net income growth
- +118%12 months vs before
Profitability
- Gross margin
- n/anot meaningful for a bank
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 30.7%
- FCF margin
- 20.0%
- Return on equity
- 18%
- Return on invested capital
- n/anot meaningful for a bank
Balance sheet
- Cash & short-term inv.
- $554M
- Total debt
- $210M
- Net cash
- n/anot meaningful for a bank
- Debt / equity
- n/adeposits/float make debt/equity not comparable for a bank
- Interest coverage
- n/anot meaningful for a bank
Cash flow & returns
- Free cash flow, 12 months
- $184M
- FCF growth, 12 months
- −52%
- Dividend yield
- 9.05%$303M paid
- Payout ratio
- 108%
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- +10.1%diluted shares vs a year ago
- Stock-based comp
- $5M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Mechanics Bancorp’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
FCF $0.2B · Sales +46%
- Free cash flow, 12 months$0.2B
- Free-cash-flow yield5.5%
- Return on equity10%
- Sales growth (latest quarter vs year-ago quarter)+46%
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $15.05
- Fair value est.base case$11.71−22.2%
- 52-wk lowlowest close, 1 year$13.12−12.8%
- PriceMon Nov 2 close$15.05you are here
- 52-wk highhighest close, 1 year$17.17+14.1%
Momentum & 52-week range
RSI 54 · 5 days −0.5%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
MCHB is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on Mechanics Bancorp in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in Major Banks
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.