Q: I have a very small position in MCB and I'm following their progress. I found the last earnings report to be rather confusing, some decreases (e.g. revenues, albeit with excuses) and some hopeful indications (e.g. new products). What do you think of MCB? Is it a buy, a sell or a hold? Do you anticipate earnings growth going forward?
5i Research Answer:
Based on consensus (two analysts) very strong earnings growth is expected in 2026 but due to the nature of the business earnings can be volatile. The stock is cheap and offers a 3.17% dividend, but there is size risk here and the dividend has been omitted in prior cycles. The balance sheet is fine and insiders own 5%. We would consider it OK but not that compelling. HOLD.