FIRST MERCHANTS CORP (FRME)
US3208171096 - Common Stock
Overall FRME gets a fundamental rating of 4 out of 10. We evaluated FRME against 403 industry peers in the Banks industry. FRME has a medium profitability rating, but doesn't score so well on its financial health evaluation. FRME is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FRME was profitable.
In the past year FRME had a positive cash flow from operations.
Each year in the past 5 years FRME has been profitable.
Each year in the past 5 years FRME had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.97%, FRME is doing good in the industry, outperforming 68.01% of the companies in the same industry.
FRME's Return On Equity of 7.72% is in line compared to the rest of the industry. FRME outperforms 47.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 7.72% | ||
| ROIC | N/A |
ROA(3y)1.26%
ROA(5y)1.23%
ROE(3y)10.49%
ROE(5y)9.72%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
FRME has a Profit Margin of 28.38%. This is amongst the best in the industry. FRME outperforms 80.60% of its industry peers.
In the last couple of years the Profit Margin of FRME has declined.
The Operating Margin and Gross Margin are not available for FRME so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 28.38% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y4.12%
PM growth 5Y-2.3%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
FRME does not have a ROIC to compare to the WACC, probably because it is not profitable.
FRME has more shares outstanding than it did 1 year ago.
FRME has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FRME has been reduced compared to a year ago.
2.2 Solvency
FRME has a debt to FCF ratio of 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.87, FRME is in the better half of the industry, outperforming 79.60% of the companies in the same industry.
FRME has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.11, FRME is in the better half of the industry, outperforming 72.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.62%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for FRME have decreased strongly by -20.80% in the last year.
Measured over the past 5 years, FRME shows a small growth in Earnings Per Share. The EPS has been growing by 3.96% on average per year.
The Revenue has decreased by -6.22% in the past year.
Measured over the past years, FRME shows a quite strong growth in Revenue. The Revenue has been growing by 9.40% on average per year.
EPS 1Y (TTM)-20.8%
EPS 3Y12.58%
EPS 5Y3.96%
EPS Q2Q%0%
Revenue 1Y (TTM)-6.22%
Revenue growth 3Y9.78%
Revenue growth 5Y9.4%
Sales Q2Q%-3.26%
3.2 Future
The Earnings Per Share is expected to decrease by -0.97% on average over the next years.
FRME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.18% yearly.
EPS Next Y-16.26%
EPS Next 2Y-3.69%
EPS Next 3Y-0.97%
EPS Next 5YN/A
Revenue Next Year-2.76%
Revenue Next 2Y-0.19%
Revenue Next 3Y1.18%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.56, the valuation of FRME can be described as reasonable.
65.49% of the companies in the same industry are more expensive than FRME, based on the Price/Earnings ratio.
FRME is valuated cheaply when we compare the Price/Earnings ratio to 27.34, which is the current average of the S&P500 Index.
FRME is valuated reasonably with a Price/Forward Earnings ratio of 10.68.
Based on the Price/Forward Earnings ratio, FRME is valued a bit cheaper than the industry average as 62.97% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FRME to the average of the S&P500 Index (23.61), we can say FRME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, FRME is valued cheaper than 80.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.98 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.92
EPS Next 2Y-3.69%
EPS Next 3Y-0.97%
5. Dividend
5.1 Amount
FRME has a Yearly Dividend Yield of 3.58%.
FRME's Dividend Yield is a higher than the industry average which is at 3.25.
FRME's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
The dividend of FRME is nicely growing with an annual growth rate of 10.21%!
FRME has been paying a dividend for at least 10 years, so it has a reliable track record.
FRME has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.21%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
46.94% of the earnings are spent on dividend by FRME. This is a bit on the high side, but may be sustainable.
DP46.94%
EPS Next 2Y-3.69%
EPS Next 3Y-0.97%
FIRST MERCHANTS CORP
NASDAQ:FRME (1/8/2025, 8:03:12 PM)
After market: 38.72 0 (0%)38.72
+0.02 (+0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners74.78%
Inst Owner Change0%
Ins Owners1.49%
Ins Owner Change5.32%
Market Cap2.27B
Analysts80
Price Target46.92 (21.18%)
Short Float %0.82%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Dividend Growth(5Y)10.21%
DP46.94%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.57%
Min EPS beat(2)-16.44%
Max EPS beat(2)3.29%
EPS beat(4)2
Avg EPS beat(4)-3.42%
Min EPS beat(4)-16.44%
Max EPS beat(4)3.29%
EPS beat(8)3
Avg EPS beat(8)-3.04%
EPS beat(12)5
Avg EPS beat(12)-2.32%
EPS beat(16)9
Avg EPS beat(16)1.74%
Revenue beat(2)0
Avg Revenue beat(2)-5.2%
Min Revenue beat(2)-8.07%
Max Revenue beat(2)-2.33%
Revenue beat(4)0
Avg Revenue beat(4)-6.26%
Min Revenue beat(4)-8.07%
Max Revenue beat(4)-2.33%
Revenue beat(8)0
Avg Revenue beat(8)-6.22%
Revenue beat(12)0
Avg Revenue beat(12)-5.7%
Revenue beat(16)2
Avg Revenue beat(16)-4.57%
PT rev (1m)9.52%
PT rev (3m)1.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.68 | ||
| P/S | 3.63 | ||
| P/FCF | 7.98 | ||
| P/OCF | 7.98 | ||
| P/B | 0.99 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.35
EY8.65%
EPS(NY)3.63
Fwd EY9.37%
FCF(TTM)4.85
FCFY12.54%
OCF(TTM)4.85
OCFY12.54%
SpS10.67
BVpS39.24
TBVpS26.74
PEG (NY)N/A
PEG (5Y)2.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 7.72% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 28.38% | ||
| GM | N/A | ||
| FCFM | 45.5% |
ROA(3y)1.26%
ROA(5y)1.23%
ROE(3y)10.49%
ROE(5y)9.72%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y4.12%
PM growth 5Y-2.3%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 160.33% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC14.62%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)113%
Profit Quality(5y)116.71%
High Growth Momentum
Growth
EPS 1Y (TTM)-20.8%
EPS 3Y12.58%
EPS 5Y3.96%
EPS Q2Q%0%
EPS Next Y-16.26%
EPS Next 2Y-3.69%
EPS Next 3Y-0.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.22%
Revenue growth 3Y9.78%
Revenue growth 5Y9.4%
Sales Q2Q%-3.26%
Revenue Next Year-2.76%
Revenue Next 2Y-0.19%
Revenue Next 3Y1.18%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y49.44%
FCF growth 3Y8.29%
FCF growth 5Y7.51%
OCF growth 1Y49.44%
OCF growth 3Y8.29%
OCF growth 5Y7.51%