Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Mercantile BankFRA:MCS 67 Return-on-Tangible-Equity is 15.87% as of Jun. 2026, which is 8% above its 10-year median of 14.66. GuruFocus rates FRA:MCS with a GF Score™ of 67/100 and a GF Value™ of €41.32. The stock has 7 warning signs investors should review. Among 1,518 Banks companies, Mercantile Bank ranks better than 74.37% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Mercantile Bank's annualized net income for the quarter that ended in Jun. 2026 was €90.0 Mil. Mercantile Bank's average shareholder tangible equity for the quarter that ended in Jun. 2026 was €567.2 Mil. Therefore, Mercantile Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 15.87%.
The historical rank and industry rank for Mercantile Bank's Return-on-Tangible-Equity or its related term are showing as below:
FRA:MCS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.6 Med: 14.66 Max: 19.02
Current: 15.2
During the past 13 years, Mercantile Bank's highest Return-on-Tangible-Equity was 19.02%. The lowest was 10.60%. And the median was 14.66%.
FRA:MCS's Return-on-Tangible-Equity is ranked better than 74.37% of 1518
companies
in the Banks industry
Industry Median: 11.455
vs FRA:MCS: 15.20
Mercantile Bank (FRA:MCS) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Mercantile Bank Return-on-Tangible-Equity Related Terms
Mercantile Bank Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Mercantile Bank's Return-on-Tangible-Equity 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.
FRA:MCS vs SBSI, BFST, FBAK: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Mercantile Bank's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Mercantile Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Mercantile Bank's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.87% mean?
Mercantile Bank (FRA:MCS) has a Return-on-Tangible-Equity of 15.87% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mercantile Bank and its competitors. This is near median its historical median of 14.66. Over the past decade, Mercantile Bank's Return-on-Tangible-Equity has ranged from 10.60 to 19.02. According to the industry distribution chart, Mercantile Bank ranks #389 out of 1518 companies in the Banks industry, placing it in the top 25.6%.
Is Mercantile Bank's Return-on-Tangible-Equity too high?
Mercantile Bank's current Return-on-Tangible-Equity of 15.87% is near median its 10-year median of 14.66. Over the past 10 years, this metric has ranged from a low of 10.60 to a high of 19.02. The Banks industry median Return-on-Tangible-Equity is 11.46. Mercantile Bank's value of 15.87% is 38.5% above this industry median. Based on the distribution chart, Mercantile Bank ranks #389 out of 1518 companies in the Banks industry, which is above the industry midpoint. Overall, Mercantile Bank has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Mercantile Bank's Return-on-Tangible-Equity compare to SBSI and BFST?
According to the Banks industry distribution chart, Mercantile Bank ranks #389 out of 1518 companies for Return-on-Tangible-Equity. This puts Mercantile Bank in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.46. Mercantile Bank's value of 15.87% is 38.5% above this benchmark. Historically, Mercantile Bank's own Return-on-Tangible-Equity has ranged from 10.60 to 19.02 over the past decade. While the company's 10-year median is 14.66 vs. the industry median of 11.46, Mercantile Bank has consistently been above 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 Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.46, based on 1,518 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mercantile Bank's current Return-on-Tangible-Equity of 15.87% is 38.5% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mercantile Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercantile Bank's current Return-on-Tangible-Equity is 15.87%, which is near median its own 10-year median of 14.66. 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?
Mercantile Bank (FRA:MCS) has a current Return-on-Tangible-Equity of 15.87%. The stock's GF Value™ is €41.32, compared to a current price of €51.00 — trading 23.4% above its estimated fair value. The current Return-on-Tangible-Equity is 15.87%, which is near median its 10-year median of 14.66 and 38.5% above the Banks industry median of 11.46. Mercantile Bank's overall GF Score™ is 67/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Mercantile Bank (FRA:MCS), the current Return-on-Tangible-Equity is 15.87% as of Jun. 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 (FRA:MCS) Overvalued in 2026?
Based on GuruFocus' analysis, Mercantile Bank stock appears to be overvalued.
The current stock price of €51.00 is trading 23.4% above its estimated GF Value™ of €41.32.
Key valuation signals for FRA:MCS:
Return-on-Tangible-Equity: 15.87% (near median its 10-year median of 14.66)
GF Value™: €41.32 vs. price of €51.00 (23.4% above fair value)
Industry Position: 38.5% above the Banks median (#389 of 1518)
No single metric tells the full story. See the FRA:MCS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercantile Bank Corp operates as a bank holding company. It offers various commercial banking services to individuals, businesses, governmental units, and other institutions. These services include deposit products such as checking, savings, and term certificate accounts and lending products such as commercial, residential mortgage, and installment loans. The company generates revenue from interest and dividends earned on loans, securities, and other financial instruments.
67GF Score
Get the complete analysis for FRA:MCS
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:MCS has been successfully added to your 
