M&F Bancorp (MFBP) Stock Analysis & Winston Score

M&F Bancorp is the parent company of Mechanics and Farmers Bank, one of the oldest and largest Black-owned banks in the United States. It offers everyday banking services like checking accounts, savings accounts, mortgages, and small business loans, mainly serving individuals and communities in North Carolina. The bank has deep roots in Durham, North Carolina, where it was founded in 1907.

M&F Bancorp makes money the traditional banking way — it takes in deposits and earns interest by lending that money out as loans, keeping the difference as profit. It operates primarily in North Carolina with a small number of branch locations, making it a very small community bank with roughly $300 million in total assets. Its long history and focus on underserved communities give it a loyal customer base, but its small size and low return on invested capital mean it has limited room to absorb economic downturns or rising loan defaults.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-6.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-14.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

0.0%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$3M cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

M&F Bancorp's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 2.0M (2021) → 2.0M (2025)

Score breakdown

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Quality

Gross Margin

81.2%

Premium pricing power — 81.2% gross margin

Operating Margin

17.8%

Healthy — 17.8% operating margin

ROCE

0.9%

Weak — 0.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-1.9%

Shrinking sales (-1.9% YoY)

EPS YoY

-31.7%

Earnings shrinking (-31.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

0%

Weak — only 0% of profit becomes cash

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.00

Conservative — low debt load (0.00)

Interest Cover

1.05x

Dangerous — barely covers interest (1.0x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

25.2x

Growth-priced — P/E 25.2

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

0.83%

Small dividend — 0.83% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+9.1%

Dividend growing modestly (9.1% YoY)

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