Mountain Pacific Bancorp (MPCB) Earnings Growth And 33.9% Margin Reinforce Bullish Profitability Narrative

Mountain Pacific Bancorp (MPCB) just wrapped up FY 2025 with fourth quarter revenue of about US$10.0 million and net income of US$3.1 million, set against a trailing twelve month total of US$38.7 million in revenue and US$13.1 million in net income. The company has seen revenue move from US$28.7 million to US$38.7 million on a trailing basis, while trailing earnings growth of 67.1% and a net profit margin of 33.9% frame a results season in which profitability and efficiency are front and center for investors. With margins sitting comfortably above last year’s 26.5%, the focus this quarter is on how that earnings power shapes expectations going forward.

See our full analysis for Mountain Pacific Bancorp.

With the latest numbers on the table, the next step is to compare them with the widely followed narratives around growth, quality and risks to see which views hold up and which ones start to look stretched.

Curious how numbers become stories that shape markets? Explore Community Narratives

TTM earnings growth of 67.1% backs higher profitability story

• Over the last 12 months, net income on a trailing basis reached US$13.1 million, up from US$7.8 million a year earlier, which lines up with the 67.1% trailing earnings growth figure that jumps out in the data.
• What stands out for a bullish view is that this earnings step up is broad based across the year, with quarterly net income between US$2.8 million and US$3.7 million in FY 2025,
  • Trailing revenue of US$38.7 million versus US$29.6 million a year ago means profits are being generated on a larger business, which heavily supports the bullish angle that recent profitability is not just a one off spike.
  • At the same time, the trailing net margin of 33.9% sits above last year’s 26.5%, so bulls can point to both higher earnings and a richer margin profile when they talk about quality of the recent performance.

To see how this trailing growth story fits into a fuller view on quality, risks, and valuation, you can step through the broader narrative and context that investors are using around the name. 📊 Read the full Mountain Pacific Bancorp Consensus Narrative.

Margins at 33.9% meet value style P/E of 8x

• The combination of a 33.9% trailing net profit margin and a P/E of 8x alongside a peer average of 9.3x and a US Banks industry average of 12x means Mountain Pacific is showing high profitability while trading on a lower multiple than many comparables.
• For investors who lean bullish on value, the numbers give a mixed but interesting picture,
  • Supportive for that stance, the current share price of US$14.99 sits below the DCF fair value estimate of US$20.45, which is an indicated discount of about 26.7% on that measure.
  • Adding to that, the trailing revenue base of US$38.7 million is higher than the US$28.7 million level referenced a year earlier, so fans of the bullish case can argue that the company is combining a larger revenue line, higher net income, and lower relative valuation multiples in the same period.

Illiquid shares add risk beside strong figures

• Alongside the profitability and valuation metrics, the shares are flagged as highly illiquid, which is identified as a major risk even though trailing earnings rose 67.1% and the stock trades below the DCF fair value estimate.
• Critics who take a more cautious stance focus on how that illiquidity interacts with all of these attractive figures,
  • They might point out that, even with a P/E of 8x and a 26.7% discount to DCF fair value, thin trading can make it harder to enter or exit positions at prices close to US$14.99 when volumes are low.
  • They can also argue that the combination of strong trailing margins at 33.9% and higher trailing revenue does not remove the practical trading risk that price moves may be sharp when larger orders hit a limited pool of buyers and sellers.

Next Steps

Don’t just look at this quarter; the real story is in the long-term trend. We’ve done an in-depth analysis on Mountain Pacific Bancorp’s growth and its valuation to see if today’s price is a bargain. Add the company to your watchlist or portfolio now so you don’t miss the next big move.

See What Else Is Out There

For all the strong profitability metrics, the biggest practical weakness here is the highly illiquid share trading. This can make real-world entry and exit tricky.

If thin trading and potential price gaps worry you, you may wish to shift your focus toward companies with healthier liquidity and consistent performance using CTA_SCREENER_STABLE_GROWTH, and start comparing alternatives today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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