Summary
- Since its IPO, MetroCity Bankshares continued to show impeccable results, given the upward trend of its operations that remained consistent with some key financial ratios.
- The company has been raising its dividend payments while ensuring its adequacy to do so.
- After hitting its lowest point at $8.80 last May 13, the stock price has been moving in an increasing pattern but remains undervalued.
- Although banking and capital markets are not spared from the adverse effects of COVID-19, MCBS maintains prudent management of operations despite its performance during the first half of 2020.
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MetroCity Bankshares Inc. (NASDAQ: MCBS) has been impressive despite being a newcomer in trading. Although it was just established less than a decade ago, the company proved to be durable enough to withstand market changes and venture into the stock market. This can further be shown as the dividends have been noticeably increasing while maintaining the company's capacity to suffice it and even enlarge the operations. Moreover, the current price of the stock turns out to be undervalued as estimated using the Dividend Discount Model.
Analysis of MetroCity Bankshares's Actual Operation: Operating Capacity, Profitability, Sustainability
Interest Income and Interest Expense
The interest rate that the Fed dictates varies according to the economic condition. It has a direct impact on banks, holding, and even real estate companies. With its sound financial health for the last two years, MCBS has shown how its operation could cope with the market changes knowing that the interest income is the primary source of operating revenue. Even if it's been less than a decade since it was established, the company has proven its strong capacity to operate and even go public.
