MVB Financial (MVBF) AI Stock Analysis

• Market Cap: $218.84M
• Dividend Yield: 3.84%
• Average Volume (3M): 29.72K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.14
• Revenue Growth: 9.78%
• EPS Growth: 1.28%
• Country: US
• Employees: 445
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 1.53
• Shares Outstanding: 12,941,462
• 10 Day Avg. Volume: 32,063
• 30 Day Avg. Volume: 29,720
• PEG Ratio: 5.92
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.52
• Price to Cash Flow (P/CF): 6.30
• P/FCF Ratio: 2.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $25.00
• Price Target Upside: 47.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

MVB Financial's stock score is primarily driven by a solid balance sheet and strategic corporate appointments, balanced by concerns over revenue and cash flow volatility. Technical indicators suggest caution, but the reasonable valuation and consistent dividends provide some upside potential.

MVB Financial Business Overview & Revenue Model

Company Description

MVB Financial Corp. (MVBF) is a diversified financial holding company headquartered in Fairmont, West Virginia. It operates primarily through its subsidiary, MVB Bank, which offers a range of banking services focused on personal and business banking, including deposit products, loans, and other financial services. The company is involved in multiple sectors, such as traditional banking, fintech, and specialty lending, aiming to deliver innovative financial solutions to its clients.

How the Company Makes Money

MVB Financial makes money through several key revenue streams. The primary source of revenue is generated from its traditional banking operations, which include interest income from loans and credit products offered to individuals and businesses, as well as fees from deposit accounts and other banking services. Additionally, the company earns non-interest income from service charges, fees related to mortgage banking, and financial advisory services. MVB has also expanded into the fintech sector by partnering with and investing in technology-driven financial services, which contributes to its revenue through transaction fees, software licensing, and strategic partnerships. These diversified revenue streams, along with prudent financial management and strategic acquisitions, drive MVB Financial's earnings.

MVB Financial Financial Statement Overview

Summary

MVB Financial demonstrates stable financial health, highlighted by a strong balance sheet with low leverage and a healthy equity ratio. However, challenges exist with declining revenue growth and fluctuating cash flows, indicating potential issues in revenue generation and liquidity management.

Income Statement

MVB Financial shows a mixed performance in its income statement. The gross profit margin is strong, indicating efficient cost management. However, there is a decline in revenue growth comparing the latest TTM data to the previous annual report, suggesting a potential challenge in revenue generation. The net profit margin has remained relatively stable, which is a positive sign, but the declining EBIT margin over the years indicates pressure on operational efficiency.

Balance Sheet

The balance sheet of MVB Financial is robust with a low debt-to-equity ratio, reflecting prudent financial leverage. The equity ratio is healthy, indicating a strong capital base relative to total assets. The return on equity has shown improvement, which is a positive indicator of profitability relative to equity. Overall, the company maintains a stable balance sheet with adequate equity supporting its assets.

Cash Flow

Cash flow analysis reveals some concerns with free cash flow growth, which has seen fluctuations. The operating cash flow to net income ratio is decent, suggesting that earnings are well-supported by cash flow. However, the recent decline in operating cash flow in the TTM period compared to previous annual data raises caution regarding cash generation capabilities.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
200.66M	146.48M	150.10M	139.75M	160.66M	124.00M
	Gross Profit
203.51M	144.81M	150.10M	139.75M	160.66M	124.00M
	EBIT
13.36M	42.13M	28.01M	49.00M	46.94M	35.44M
	EBITDA
3.73M	0.00	20.35M	52.78M	50.23M	38.28M
	Net Income Common Stockholders
18.56M	31.23M	15.05M	39.12M	37.41M	26.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
-398.23M	398.23M	420.09M	731.62M	686.32M	276.37M
	Total Assets
3.33B	3.31B	3.06B	2.79B	2.33B	1.94B
	Total Debt
99.18M	80.33M	185.38M	73.03M	43.41M	222.88M
	Net Debt
-299.05M	-317.90M	145.10M	-237.13M	-232.29M	182.33M
	Total Liabilities
3.04B	3.02B	2.79B	2.51B	2.09B	1.73B
	Stockholders Equity
289.38M	289.38M	261.39M	275.30M	239.48M	211.94M
Cash Flow		Free Cash Flow
21.30M	27.40M	62.14M	29.95M	105.62M	-10.10M
	Operating Cash Flow
23.26M	29.31M	65.18M	34.81M	112.23M	-8.06M
	Investing Cash Flow
52.10M	117.07M	-628.95M	-571.95M	-294.11M	-120.06M
	Financing Cash Flow
-53.22M	211.57M	296.62M	580.68M	417.77M	133.90M

MVB Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MVBF, the sentiment is Negative. The current price of 16.91 is below the 20-day moving average (MA) of 18.83, below the 50-day MA of 19.26, and below the 200-day MA of 19.71, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 24.62 is Positive, neither overbought nor oversold. The STOCH value of 12.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MVBF.

MVB Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOMB	76 Outperform	$5.50B	14.04	10.38%	2.71%	8.83%	3.77%
CUBI	72 Outperform	$1.51B	9.45	10.44%	―	-3.61%	-29.58%
MVBF	66 Neutral	$218.84M	11.58	6.75%	3.84%	9.78%	1.28%
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%
FVCB	63 Neutral	$185.32M	12.52	6.66%	―	22.60%	284.38%
EGBN	59 Neutral	$629.76M	―	-3.76%	3.61%	9.77%	-147.04%

MVB Financial Corporate Events

MVB Financial Appoints New Chief Deposit Officer

On January 14, 2025, MVB Financial Corp. announced the appointment of Jeffrey Weidley as Chief Deposit Officer. With extensive experience in banking and strategic initiatives, Weidley will be responsible for enhancing MVB Bank’s deposit strategies and strengthening client relationships, which is expected to impact the company’s market position positively.

MVB Financial Declares Consistent Quarterly Dividend

MVB Financial Corp. has declared a quarterly cash dividend of $0.17 per share for the fourth quarter of 2024, maintaining the dividend from the previous quarter. This decision reflects the company’s strong asset quality and growth in tangible book value, positioning it for future growth and improved profitability, as stated by CEO Larry F. Mazza.

MVB Financial Appoints Joe Rodriguez as Chief Risk Officer

MVB Financial Corp. has appointed Joe Rodriguez as Chief Risk Officer, highlighting his expertise in risk management and regulatory frameworks. Rodriguez, previously with Capital One, is expected to enhance MVB’s risk management capabilities, driving business value and transformation. His career spans roles in legal and compliance sectors at Walmart and the U.S. Department of Justice, bringing a wealth of experience to MVB’s strategic leadership.

MVB Financial Strengthens Fintech Partnerships Amid Challenges

MVB Financial Corp. emphasizes its strategic focus on fintech partnerships, including a notable collaboration with Jack Henry, aiming to boost payment capabilities and expand its banking-as-a-service model. Despite challenges like the exit from digital asset accounts impacting earnings, MVB maintains a strong liquidity position with significant growth in payment-related deposits. The company’s use of non-GAAP measures highlights its efforts to provide investors with clear insights into its financial health and competitive positioning in the evolving financial landscape.