MVB Financial Corp. (NASDAQ:MVBF) has a Return on Invested Capital (ROIC) of 0.33% and a Weighted Average Cost of Capital (WACC) of 28.73%.
Mid Penn Bancorp, Inc. (MPB) leads with a ROIC of 40.55% and a WACC of 28.76%, indicating high capital efficiency.
Merchants Bancorp (MBIN) also outperforms MVBF with a ROIC of 4.10% and a WACC of 12.49%.
MVB Financial Corp. (NASDAQ:MVBF) is a financial services company that offers a variety of banking and financial products. It operates primarily in the United States, providing services such as commercial and retail banking, insurance, and wealth management. The company competes with other financial institutions like Mid Penn Bancorp, Inc. (MPB), Merchants Bancorp (MBIN), and others in the banking sector.
In evaluating MVB Financial Corp.’s performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. MVBF’s ROIC is 0.33%, while its WACC is significantly higher at 28.73%. This results in a ROIC to WACC ratio of 0.0114, indicating that the company is not generating sufficient returns on its invested capital compared to its cost of capital.
When comparing MVBF to its peers, Mid Penn Bancorp, Inc. (MPB) emerges as a leader with a ROIC of 40.55% and a WACC of 28.76%, resulting in a ROIC to WACC ratio of 1.4099. This suggests that MPB is highly efficient in utilizing its capital to generate returns, outperforming MVBF and other peers in this aspect.
Merchants Bancorp (MBIN) also shows a better performance than MVBF, with a ROIC of 4.10% and a WACC of 12.49%, leading to a ROIC to WACC ratio of 0.3284. This indicates that MBIN is more effective in generating returns on its invested capital relative to its cost of capital compared to MVBF.
Other peers like Fidelity D & D Bancorp, Inc. (FDBC) and Bankwell Financial Group, Inc. (BWFG) also demonstrate higher ROIC to WACC ratios than MVBF, with ratios of 0.2554 and 0.0540, respectively. This further highlights the need for MVBF to improve its capital efficiency to better compete in the financial services industry.
