Mercantile BankDHA:MERCANBANK -1.33%68 Net Margin % is 10.66% as of Mar. 2026, which is 44% below its 10-year median of 18.88. GuruFocus rates DHA:MERCANBANK with a GF Score™ of 68/100 and a GF Value™ of BDT8.36 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,530 Banks companies, Mercantile Bank ranks worse than 92.75% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Mercantile Bank's Net Income for the
three
months ended in Mar. 2026 was BDT325 Mil. Mercantile Bank's Revenue for the
three
months ended in Mar. 2026 was BDT3,053 Mil. Therefore, Mercantile Bank's net margin for the quarter that ended in Mar. 2026 was 10.66%.
The historical rank and industry rank for Mercantile Bank's Net Margin % or its related term are showing as below:
DHA:MERCANBANK'
s Net Margin % Range Over the Past 10 Years
Min: 4.53 Med: 18.88 Max: 25.92
Current: 4.83
DHA:MERCANBANK's Net Margin % is ranked worse than 92.75% of 1530
companies
in the Banks industry
Industry Median: 26.845
vs DHA:MERCANBANK: 4.83
Mercantile Bank (DHA:MERCANBANK) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Mercantile Bank Net Margin % Related Terms
Mercantile Bank Net Margin % Historical Data
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The historical data trend for Mercantile Bank's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Mercantile Bank Net Margin % Competitor Comparison
For the Banks - Regional subindustry, Mercantile Bank's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mercantile Bank Net Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Mercantile Bank's Net Margin % distribution charts can be found below:
* The bar in red indicates where Mercantile Bank's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Mercantile Bank (DHA:MERCANBANK) has a Net Margin % of 10.66% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Mercantile Bank and its competitors. This is 44% below median its historical median of 18.88. Over the past decade, Mercantile Bank's Net Margin % has ranged from 4.53 to 25.92. According to the industry distribution chart, Mercantile Bank ranks #1419 out of 1530 companies in the Banks industry, placing it in the top 92.7%.
Is Mercantile Bank's Net Margin % too high?
Mercantile Bank's current Net Margin % of 10.66% is 44% below median its 10-year median of 18.88. Over the past 10 years, this metric has ranged from a low of 4.53 to a high of 25.92. The Banks industry median Net Margin % is 26.85. Mercantile Bank's value of 10.66% is 60.3% below this industry median. Based on the distribution chart, Mercantile Bank ranks #1419 out of 1530 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Mercantile Bank has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercantile Bank's Net Margin % compare to competitors?
According to the Banks industry distribution chart, Mercantile Bank ranks #1419 out of 1530 companies for Net Margin %. This places Mercantile Bank in the lower half of its industry. The industry median Net Margin % is 26.85. Mercantile Bank's value of 10.66% is 60.3% below this benchmark. Historically, Mercantile Bank's own Net Margin % has ranged from 4.53 to 25.92 over the past decade. While the company's 10-year median is 18.88 vs. the industry median of 26.85, Mercantile Bank has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Banks company?
The median Net Margin % among Banks companies is 26.85, based on 1,530 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mercantile Bank's current Net Margin % of 10.66% is 60.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Mercantile Bank and its competitors. For the Banks industry, the median Net Margin % is 26.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercantile Bank's current Net Margin % is 10.66%, which is 44% below median its own 10-year median of 18.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercantile Bank stock overvalued right now?
Based on GuruFocus' analysis, Mercantile Bank (DHA:MERCANBANK) is currently considered Modestly Undervalued. The stock's GF Value™ is BDT8.36, compared to a current price of BDT7.40 — trading 11.5% below its estimated fair value. The current Net Margin % is 10.66%, which is 44% below median its 10-year median of 18.88 and 60.3% below the Banks industry median of 26.85. Mercantile Bank's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Mercantile Bank (DHA:MERCANBANK), the current Net Margin % is 10.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mercantile Bank (DHA:MERCANBANK) Overvalued in 2026?
Based on GuruFocus' analysis, Mercantile Bank stock appears to be undervalued.
The current stock price of BDT7.40 is trading 11.5% below its estimated GF Value™ of BDT8.36.
GuruFocus considers Mercantile Bank to be Modestly Undervalued.
Key valuation signals for DHA:MERCANBANK:
Net Margin %: 10.66% (44% below median its 10-year median of 18.88)
GF Value™: BDT8.36 vs. price of BDT7.40 (11.5% below fair value)
Industry Position: 60.3% below the Banks median (#1419 of 1530)
No single metric tells the full story. See the DHA:MERCANBANK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercantile Bank PLC is a commercial bank that engages in providing banking and financial services. It offers a range of services such as SME financing, Retail Banking, Corporate Banking, Foreign Trade, NRB banking, Treasury instruments services, and E-banking, among others. Its operating segments comprise Commercial Banking including Off-shore Banking Units, Islamic Banking Window Operations, Mercantile Bank Securities Limited; MBL Assets Management Limited, and Mercantile Exchange House (UK) Ltd.
68GF Score
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