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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3099
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Banking
$700M
Nack Y. Paek
MetroCity Bankshares, Inc. provides banking products and services in the United States. It provides consumer and commercial checking accounts, savings accounts, certificates of deposits, money transfers, and other banking services. The company operates 19 full-service branch locations in Alabama, Florida, Georgia, New York, New Jersey, Texas, and Virginia.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = MCBS ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$MCBS MetroCity Bankshares, Inc. | 43 | 28 | 43 | 35 | 12.5x | 9.1x | 15.0% | 1.8% | 0.0% | 73.9% | 53.8% | 3.5% | 3.4% | 714.0x | $700M | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
MetroCity Bankshares, Inc. (MCBS) receives a "Reduce" rating with a composite score of 43.1/100. It ranks #3099 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for MCBS.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 28 | 21 | +7ALPHA |
| MOMENTUM | 35 | 32 | +3NEUTRAL |
| VALUATION | 43 | 48 | -5NEUTRAL |
| INVESTMENT | 42 | 79 | -37DRAG |
| STABILITY | 58 | 63 | -5NEUTRAL |
| SHORT INT | 58 | 71 | -13DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 5.6% vs WACC 7.3% (spread -1.7%)
GM 0% vs sector 78%, OM 74% vs sector 18%
Capital turnover 0.15x
Rev growth 4%, 7yr history
Interest coverage 1.1x, Net debt/EBITDA 8.9x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate MetroCity Bankshares, Inc. (MCBS) as a Reduce with a composite score of 43.1/100 at a current price of $28.41. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
MetroCity Bankshares, Inc. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 43.1/100 places it at rank #3099 in our full universe.
No Moat
High
Standard
Fair Value
Returns on equity of 15.0% exceed cost of capital.
Stable competitive position in a defensive sector.
Leverage of 714% D/E amplifies downside risk.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
MetroCity Bankshares, Inc. represents a reduce based on multi-factor quantitative performance.
MetroCity Bankshares, Inc. receives a Reduce rating from our analysis, with a composite score of 43.1/100 and 2 out of 5 stars, ranking #3099 out of 7,333 stocks. MCBS's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
MCBS's quality score of 28/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 15.0% (sector avg: 9.0%), gross margins of 0.0% (sector avg: 77.7%), net margins of 53.8% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 43/100, MCBS appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 12.47x, an EV/EBITDA of 9.07x, a P/B ratio of 1.88x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
With an investment score of 42/100, MCBS exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 3.5% vs. a sector average of 10.7% and a return on assets of 1.8% (sector: 1.3%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
MCBS is currently showing below-average momentum at 35/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 3.5% year-over-year, while a beta of 0.67 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 58/100, MCBS exhibits average financial resilience. Key stability metrics include a beta of 0.67 and a debt-to-equity ratio of 714.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 58/100 for MCBS suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 714.00x), small-cap liquidity risk. With a $700M market cap (small-cap), MetroCity Bankshares, Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
MCBS pays a solid dividend yield of 3.4%, contributing an income component to total returns. This compares to a sector average dividend yield of 2.0%. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
MetroCity Bankshares, Inc. is a small-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #3099 of 7,333 overall (58th percentile). Key comparisons include ROE of 15.0% exceeding the 9.0% sector median and operating margins of 73.9% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While MCBS currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Quality (28) would have the largest impact on the composite score.
EV/EBITDA 17% ABOVE SECTOR MEDIAN
ROE 67% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 100% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081

MetroCity (MCBS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

MetroCity Bankshares has acquired First IC Corporation, creating a larger banking entity with approximately $4.8 billion in total assets and 30 full-service branches across eight states. The acquisition became effective on December 1, 2025.

MetroCity Bankshares and First IC Corporation have announced their merger is expected to close on December 1, 2025, after receiving all required regulatory approvals and shareholder consent.

MetroCity Bankshares and First IC Corporation have received regulatory and shareholder approvals for their strategic merger, expected to be completed in early Q4 2025. Both companies are headquartered in Doraville, Georgia, and will combine their banking operations across multiple states.
As February trading kicks off, major U.S. stock indexes like the Dow Jones Industrial Average and S&P 500 have seen gains, while oil prices have declined amid geopolitical developments. In this dynamic market environment, dividend stocks can offer a stable income stream for investors seeking to balance growth with income potential.