FIRST MERCHANTS CORP (FRME)
US3208171096 - Common Stock
Overall FRME gets a fundamental rating of 3 out of 10. We evaluated FRME against 405 industry peers in the Banks industry. FRME has a bad profitability rating. Also its financial health evaluation is rather negative. FRME has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FRME was profitable.
FRME had a positive operating cash flow in the past year.
Each year in the past 5 years FRME has been profitable.
In the past 5 years FRME always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.97%, FRME is in the better half of the industry, outperforming 67.49% of the companies in the same industry.
FRME has a Return On Equity of 7.72%. This is comparable to the rest of the industry: FRME outperforms 46.90% 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's Profit Margin of 28.38% is fine compared to the rest of the industry. FRME outperforms 79.40% of its industry peers.
FRME's Profit Margin has declined in the last couple of years.
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.
Compared to 1 year ago, FRME has more shares outstanding
The number of shares outstanding for FRME has been increased compared to 5 years ago.
The debt/assets ratio for FRME has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of FRME is 0.87, which is an excellent value as it means it would take FRME, only 0.87 years of fcf income to pay off all of its debts.
FRME has a better Debt to FCF ratio (0.87) than 79.16% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that FRME is not too dependend on debt financing.
FRME's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. FRME outperforms 72.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.93%
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.
The Earnings Per Share has been growing slightly by 3.96% on average over the past years.
FRME shows a decrease in Revenue. In the last year, the revenue decreased by -6.22%.
FRME shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.40% yearly.
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
FRME is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.14% yearly.
FRME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.11% yearly.
EPS Next Y-16.26%
EPS Next 2Y-3.92%
EPS Next 3Y-1.14%
EPS Next 5YN/A
Revenue Next Year-2.75%
Revenue Next 2Y-0.28%
Revenue Next 3Y1.11%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 12.85 indicates a correct valuation of FRME.
FRME's Price/Earnings ratio is a bit cheaper when compared to the industry. FRME is cheaper than 63.03% of the companies in the same industry.
FRME is valuated cheaply when we compare the Price/Earnings ratio to 29.61, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.92, the valuation of FRME can be described as reasonable.
61.54% of the companies in the same industry are more expensive than FRME, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FRME to the average of the S&P500 Index (24.09), we can say FRME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 11.92 |
4.2 Price Multiples
FRME's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FRME is cheaper than 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.87 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.25
EPS Next 2Y-3.92%
EPS Next 3Y-1.14%
5. Dividend
5.1 Amount
FRME has a Yearly Dividend Yield of 3.18%.
Compared to an average industry Dividend Yield of 2.97, FRME pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.16, FRME pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
On average, the dividend of FRME grows each year by 10.21%, which is quite nice.
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
FRME pays out 46.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP46.94%
EPS Next 2Y-3.92%
EPS Next 3Y-1.14%
FIRST MERCHANTS CORP
NASDAQ:FRME (12/4/2024, 1:40:30 PM)
43.045
+0.08 (+0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 11.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 7.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 28.38% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-20.8%
EPS 3Y12.58%
EPS 5Y
EPS Q2Q%
EPS Next Y-16.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.22%
Revenue growth 3Y9.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y