Breaking Down Manhattan Bridge Capital, Inc. (LOAN) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and seeking reliable financial insights? Have you considered the stability and potential of real estate finance firms like Manhattan Bridge Capital (LOAN)? In 2024, the company reported a net income of approximately $5,591,000, or $0.49 per share, marking a 2.1% increase from the previous year. But how sustainable is this growth, and what are the key factors driving Manhattan Bridge Capital's financial health? Dive in to uncover revenue trends, cash flow stability, and strategic moves that could impact your investment decisions.

Manhattan Bridge Capital, Inc. (LOAN) Revenue Analysis

Understanding Manhattan Bridge Capital, Inc.'s (LOAN) revenue streams is crucial for investors to assess the company's financial health and stability. The company primarily generates revenue through interest income and loan origination fees from its real estate loan portfolio.

Manhattan Bridge Capital, Inc. (LOAN) reported total revenue of $7.7 million for the year ended December 31, 2024, compared to $9.4 million for the year ended December 31, 2023. This represents a year-over-year decrease of approximately 18.1%. The decrease was primarily due to a decrease in interest income as a result of decreased loan portfolio.

Here's a breakdown of the primary revenue sources:

• Interest Income: The largest component of revenue, derived from interest earned on the portfolio of real estate loans.
• Loan Origination Fees: Fees charged to borrowers when a new loan is originated.

The following table summarizes the revenue components for the fiscal years 2024 and 2023:

An analysis of changes in revenue streams reveals that the decrease in interest income was the primary driver of the overall revenue decline in 2024. This was due to a decrease in the average loan portfolio balance outstanding during the year. Loan origination fees remained consistent year-over-year, indicating a stable level of new loan activity.

For further insights into Manhattan Bridge Capital, Inc.'s (LOAN) mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of Manhattan Bridge Capital, Inc. (LOAN).

Manhattan Bridge Capital, Inc. (LOAN) Profitability Metrics

Understanding Manhattan Bridge Capital, Inc. (LOAN)'s profitability is crucial for investors. By examining key metrics, we can gain insights into the company's financial health and operational efficiency. Here's a breakdown of the company's profitability:

For the year 2024, Manhattan Bridge Capital reported a 2.1% increase in net income, reaching $5.59 million, or $0.49 per share, compared to $5.476 million, or $0.48 per share in 2023. This increase was achieved despite a slight revenue decline of 1.1%.

Here's a summary of Manhattan Bridge Capital, Inc. (LOAN)'s profitability metrics:

• Gross Profit: Manhattan Bridge Capital's gross profit for 2024 was $9.689 million.
• Operating Profit: The operating income for 2024 was reported as $5.574 million.
• Net Profit: The net income for 2024 was approximately $5.591 million, equating to $0.49 per share.

Manhattan Bridge Capital's profitability margins provide insight into how efficiently the company converts revenue into profit:

• Gross Profit Margin: While specific gross profit margin for 2024 is not explicitly mentioned, the gross margin is very high at 99.93%.
• Operating Profit Margin: Manhattan Bridge Capital's operating margin as of April 2025 (TTM) was 75.89%. At the end of 2024, the operating margin was also 75.89%, a 1.18% increase from 2023.
• Net Profit Margin: The net profit margin for 2024 was 60%.

The following table shows the operating margin history for Manhattan Bridge Capital from 2001 to 2024:

The following table shows the net profit margin from 2010 to 2024:

In 2024, Manhattan Bridge Capital's revenue consisted of $8.047 million in interest income from real estate loans and $1.642 million in origination fees. Total revenue for the year was $9.689 million, a slight decrease from $9.796 million in 2023.

Managements's cost control is evident, as operating costs decreased by 5.5% to $4.12 million in 2024. This reduction in expenses helped offset the slight decrease in revenue, contributing to the net income increase.

For more insights into the company's mission, vision, and core values, visit: Mission Statement, Vision, & Core Values of Manhattan Bridge Capital, Inc. (LOAN).

Manhattan Bridge Capital, Inc. (LOAN) Debt vs. Equity Structure

Understanding how Manhattan Bridge Capital, Inc. (LOAN) finances its operations is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it balances debt and equity financing. Here’s a detailed look:

Overview of Debt Levels

As of December 31, 2024, Manhattan Bridge Capital, Inc. (LOAN) had a total debt of $22.55 million. This debt is composed of:

• Line of credit: $16.43 million
• Senior secured notes: $5.90 million

The company also has $178,012 in cash and cash equivalents, resulting in a net debt position of -$22.37 million, or -$1.96 per share.

Debt-to-Equity Ratio

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. For Manhattan Bridge Capital, Inc. (LOAN), the debt-to-equity ratio is 0.52. This indicates that for every dollar of equity, the company has $0.52 of debt. Compared to its peers, Manhattan Bridge Capital maintains a lower debt-to-equity ratio, which the company considers an advantage in a high-interest environment.

Recent Debt Issuances, Credit Ratings, or Refinancing Activity

In 2024, Manhattan Bridge Capital repaid $8.7 million of its credit line. The company maintains a credit line of $32.5 million with Webster, Flushing Bank, and Mizrahi, secured by assignments of mortgages. Additionally, it has $6 million in outstanding notes maturing in 2026, secured by a first priority lien on MBC Funding II's assets.

Balancing Debt Financing and Equity Funding

Manhattan Bridge Capital, Inc. (LOAN) strategically balances debt and equity to fund its growth. The company's equity-to-asset ratio for December 2024 is 0.64, calculated by dividing total stockholders' equity ($43.265 million) by total assets ($67.929 million). Management believes that having a significant amount of equity invested in its loans, with leverage less than 100% of its equity, provides an advantage, especially in a high-interest rate environment.

In 2024, the company distributed dividends totaling approximately $5.2 million. Furthermore, the company's management is committed to refinancing its notes before maturity and extending or replacing its credit line before expiration, aiming for continued growth under favorable conditions.

Here's a brief overview of Manhattan Bridge Capital, Inc. (LOAN)’s financial position:

Explore more about Manhattan Bridge Capital Inc.s financial insights: Breaking Down Manhattan Bridge Capital, Inc. (LOAN) Financial Health: Key Insights for Investors

Manhattan Bridge Capital, Inc. (LOAN) Liquidity and Solvency

Liquidity is a critical aspect of Manhattan Bridge Capital, Inc.'s financial health, indicating its ability to meet short-term obligations. Key metrics such as the current and quick ratios provide insights into the company's liquidity position. Analyzing working capital trends and cash flow statements further enhances the assessment of liquidity.

Here's an overview:

• Current Ratio: For the fiscal year 2024, Manhattan Bridge Capital, Inc. reported a current ratio of 7.8. This ratio measures the company's ability to cover its short-term liabilities with its short-term assets.
• Quick Ratio: The quick ratio, which excludes inventory from current assets, was 7.8 for the same period. This provides a more conservative view of the company's liquidity.

Both ratios suggest a strong liquidity position for Manhattan Bridge Capital, Inc.

Working Capital:

Analyzing the trends in working capital—the difference between current assets and current liabilities—provides a clearer picture of liquidity management. As of fiscal year 2024, Manhattan Bridge Capital, Inc. shows a working capital of approximately $32.97 million.

Cash Flow Statements:

Cash flow statements are essential for understanding the sources and uses of cash. Here’s a summary of Manhattan Bridge Capital, Inc.'s cash flows for the fiscal year 2024:

• Operating Cash Flow: Net cash used in operating activities was -$3.28 million.
• Investing Cash Flow: Net cash used for investing activities totaled -$11.76 million.
• Financing Cash Flow: Net cash provided by financing activities amounted to $15.32 million.
• Net Change in Cash: The net decrease in cash was -$0.07 million.

Below is a detailed breakdown of Manhattan Bridge Capital, Inc.'s cash flow activities for the fiscal year 2024:

Potential Liquidity Concerns or Strengths:

Manhattan Bridge Capital, Inc. shows strong liquidity positions with current and quick ratios at 7.8. The company's financing activities provide substantial cash, offsetting negative cash flows from operating and investing activities. Investors should monitor these trends to ensure continued financial stability.

For more detailed insights, refer to: Breaking Down Manhattan Bridge Capital, Inc. (LOAN) Financial Health: Key Insights for Investors

Manhattan Bridge Capital, Inc. (LOAN) Valuation Analysis

Determining whether Manhattan Bridge Capital, Inc. (LOAN) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, enterprise value-to-EBITDA (EV/EBITDA), stock price trends, dividend yield, payout ratios, and analyst consensus.

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: Manhattan Bridge Capital's latest twelve months P/E ratio is 10.1x. The P/E ratio for fiscal years ending December 2020 to 2024 averaged 11.8x, with a median of 11.4x. The P/E ratio hit its 5-year low in December 2024 of 10.1x. Compared to competitors, Manhattan Bridge Capital's P/E ratio is within a reasonable range.
• Price-to-Book (P/B) Ratio: Manhattan Bridge Capital has a P/B Ratio of 1.44.
• Enterprise Value-to-EBITDA (EV/EBITDA): An EV/EBITDA of 6.72 was recorded.

Stock Price Trends:

• The 52-week range is $4.74 - $6.05.
• The previous close price was $5.12.
• The stock price has gained 1.70% on the last trading day.

Dividend Analysis:

• Dividend Yield: The current dividend yield stands at 8.98% (trailing and forward).
• Dividend Amount: The company declared a dividend of $0.115 per share.
• Payout Ratio: The dividend payout ratio is 93.88%.

Analyst Consensus:

• Manhattan Bridge Capital holds several negative signals, leading to a negative evaluation of the stock.
• The stock is expected to fall -4.19% during the next 3 months.

Additional Factors:

• Equity to Asset Ratio: The Equity to Asset Ratio for the quarter that ended in December 2024 was 0.64.
• Market Capitalization: The market cap is $60.51 million.

Below is a table summarizing key valuation metrics for Manhattan Bridge Capital, Inc.:

For further insights into Manhattan Bridge Capital, Inc. (LOAN), consider exploring their investor profile: Exploring Manhattan Bridge Capital, Inc. (LOAN) Investor Profile: Who’s Buying and Why?

Manhattan Bridge Capital, Inc. (LOAN) Risk Factors

Several internal and external factors could significantly impact Manhattan Bridge Capital, Inc. (LOAN)'s financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

One of the primary risks facing Manhattan Bridge Capital, Inc. (LOAN) is the intense competition within the real estate lending market. Numerous other firms offer similar financing solutions, which could pressure Manhattan Bridge Capital, Inc. (LOAN)'s profit margins and market share. To remain competitive, the company must continually innovate and differentiate its services.

Regulatory changes also pose a significant risk. Changes in lending laws, zoning regulations, or other government policies could adversely affect Manhattan Bridge Capital, Inc. (LOAN)'s ability to operate profitably. For example, new restrictions on loan terms or increased capital requirements could limit the company's lending capacity and increase its compliance costs.

Market conditions, including interest rate fluctuations and economic downturns, can significantly impact Manhattan Bridge Capital, Inc. (LOAN)'s financial performance. Rising interest rates could reduce demand for the company's loans, while an economic downturn could lead to increased defaults and lower property values. These factors could negatively affect Manhattan Bridge Capital, Inc. (LOAN)'s profitability and financial stability.

Operational risks also warrant consideration. These include the risk of loan defaults, fraud, and inadequate risk management practices. While Manhattan Bridge Capital, Inc. (LOAN) has implemented measures to mitigate these risks, there is always a possibility of unforeseen events that could negatively impact its financial performance.

Financial risks include the company's reliance on debt financing and its exposure to interest rate risk. Manhattan Bridge Capital, Inc. (LOAN) uses debt to fund its lending activities, which increases its financial leverage. This leverage amplifies both potential gains and potential losses. Additionally, changes in interest rates could affect the company's borrowing costs and profitability.

Strategic risks involve the company's ability to adapt to changing market conditions and execute its business plan effectively. Failure to anticipate market trends, innovate its products and services, or manage its growth effectively could harm Manhattan Bridge Capital, Inc. (LOAN)'s competitive position and financial performance.

While specific mitigation strategies or plans were not available in the provided search results, it is reasonable to assume that Manhattan Bridge Capital, Inc. (LOAN) employs various risk management techniques to address these challenges. These may include:

• Diversifying its loan portfolio to reduce concentration risk.
• Implementing rigorous underwriting standards to minimize the risk of loan defaults.
• Hedging its interest rate exposure to protect against fluctuations in borrowing costs.
• Maintaining adequate capital reserves to absorb potential losses.
• Continuously monitoring market conditions and regulatory developments to adapt its strategies accordingly.

Investors can gain further insights into Manhattan Bridge Capital, Inc. (LOAN)'s risk profile by reviewing its annual and quarterly reports, as well as other filings with the Securities and Exchange Commission (SEC). These documents provide detailed information about the company's financial performance, risk factors, and management's assessment of its business prospects.

Explore more about the company's investors: Exploring Manhattan Bridge Capital, Inc. (LOAN) Investor Profile: Who’s Buying and Why?

Manhattan Bridge Capital, Inc. (LOAN) Growth Opportunities

For investors eyeing Manhattan Bridge Capital, Inc. (LOAN), understanding the company’s potential for future expansion is crucial. Several factors indicate possible growth trajectories for the firm.

Analysis of key growth drivers:

• Product Innovations: Manhattan Bridge Capital, Inc. (LOAN) specializes in short-term, secured loans, primarily for real estate. Innovations in their loan products, such as flexible repayment terms or specialized loan types for emerging real estate niches, could drive growth.
• Market Expansions: Geographic expansion into underserved markets or focusing on specific types of real estate projects (e.g., fix-and-flip, construction) can open new avenues for growth.
• Acquisitions: While not always predictable, strategic acquisitions of smaller lending firms or related businesses could quickly expand Manhattan Bridge Capital, Inc. (LOAN)'s market presence and service offerings.

Future revenue growth projections and earnings estimates are contingent on several economic factors. Monitoring real estate market trends, interest rate fluctuations, and regulatory changes is essential to gauge potential impacts on Manhattan Bridge Capital, Inc. (LOAN)’s financial performance. For instance, if interest rates remain stable or decrease, this could spur more borrowing and increase the company’s loan volume.

Strategic initiatives or partnerships that may drive future growth:

• Technology Adoption: Implementing advanced technologies for loan origination, risk assessment, and portfolio management can improve efficiency and scalability.
• Strategic Alliances: Partnering with real estate developers, brokers, or other financial institutions can create referral networks and expand Manhattan Bridge Capital, Inc. (LOAN)'s reach.
• Diversification: Expanding into related financial services, such as property management or insurance, could provide additional revenue streams and reduce reliance on lending income alone.

Manhattan Bridge Capital, Inc. (LOAN) possesses several competitive advantages that could position it for growth:

• Speed and Flexibility: As a smaller, non-bank lender, Manhattan Bridge Capital, Inc. (LOAN) can often offer faster loan approvals and more flexible terms than traditional banks.
• Expertise in Niche Markets: Specializing in short-term real estate loans gives Manhattan Bridge Capital, Inc. (LOAN) a deep understanding of this market segment, allowing for better risk assessment and loan structuring.
• Strong Relationships: Building strong relationships with borrowers and referral partners can create a loyal customer base and a consistent flow of new business.

For further insights into the company's core values and strategic direction, see Mission Statement, Vision, & Core Values of Manhattan Bridge Capital, Inc. (LOAN).