FRME Fundamental Analysis - FIRST MERCHANTS CORP

Fundamental Rating

FRME gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 391 industry peers in the Banks industry. There are concerns on the financial health of FRME while its profitability can be described as average. FRME has a decent growth rate and is not valued too expensively. FRME also has an excellent dividend rating.

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1. Profitability

1.1 Basic Checks

FRME had positive earnings in the past year.

FRME had a positive operating cash flow in the past year.

In the past 5 years FRME has always been profitable.

In the past 5 years FRME always reported a positive cash flow from operatings.

1.2 Ratios

FRME's Return On Assets of 1.20% is fine compared to the rest of the industry. FRME outperforms 78.52% of its industry peers.

The Return On Equity of FRME (9.53%) is better than 61.89% of its industry peers.

		Industry Rank	Sector Rank
ROA	1.2%
ROE	9.53%
ROIC	N/A

ROA(3y)1.18%

ROA(5y)1.18%

ROE(3y)9.79%

ROE(5y)9.61%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

FRME has a better Profit Margin (34.03%) than 89.26% of its industry peers.

FRME's Profit Margin has declined in the last couple of years.

FRME does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	34.03%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y-7.92%

PM growth 5Y-3.62%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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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 less shares outstanding

The number of shares outstanding for FRME has been increased compared to 5 years ago.

Compared to 1 year ago, FRME has a worse debt to assets ratio.

2.2 Solvency

FRME has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.

Looking at the Debt to FCF ratio, with a value of 1.01, FRME is in the better half of the industry, outperforming 68.80% of the companies in the same industry.

A Debt/Equity ratio of 0.11 indicates that FRME is not too dependend on debt financing.

The Debt to Equity ratio of FRME (0.11) is better than 66.50% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	1.01
Altman-Z	N/A

ROIC/WACCN/A

WACC17.74%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

FRME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.36%, which is quite good.

The Earnings Per Share has been decreasing by -0.72% on average over the past years.

Looking at the last year, FRME shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.

Measured over the past years, FRME shows a small growth in Revenue. The Revenue has been growing by 7.84% on average per year.

EPS 1Y (TTM)8.36%

EPS 3Y-5.26%

EPS 5Y-0.72%

EPS Q2Q%44.12%

Revenue 1Y (TTM)4.18%

Revenue growth 3Y7.54%

Revenue growth 5Y7.84%

Sales Q2Q%2.76%

3.2 Future

Based on estimates for the next years, FRME will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.31% on average per year.

Based on estimates for the next years, FRME will show a quite strong growth in Revenue. The Revenue will grow by 8.88% on average per year.

EPS Next Y21.07%

EPS Next 2Y11.31%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year3.2%

Revenue Next 2Y8.56%

Revenue Next 3Y8.88%

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 accelerating.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.06, the valuation of FRME can be described as reasonable.

FRME's Price/Earnings ratio is a bit cheaper when compared to the industry. FRME is cheaper than 75.45% of the companies in the same industry.

FRME is valuated cheaply when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.

Based on the Price/Forward Earnings ratio of 9.10, the valuation of FRME can be described as reasonable.

63.94% 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 (22.94), we can say FRME is valued rather cheaply.

		Industry Rank	Sector Rank
PE	10.06
Fwd PE	9.1

4.2 Price Multiples

FRME's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FRME is cheaper than 80.05% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	8.13
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

PEG (NY)0.48

PEG (5Y)N/A

EPS Next 2Y11.31%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.08%, FRME is a good candidate for dividend investing.

FRME's Dividend Yield is a higher than the industry average which is at 3.61.

FRME's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.

		Industry Rank	Sector Rank
Dividend Yield	4.08%

5.2 History

The dividend of FRME is nicely growing with an annual growth rate of 7.59%!

FRME has paid a dividend for at least 10 years, which is a reliable track record.

FRME has not decreased its dividend in the last 3 years.

Dividend Growth(5Y)7.59%

Div Incr Years4

Div Non Decr Years4

5.3 Sustainability

FRME pays out 37.60% of its income as dividend. This is a sustainable payout ratio.

FRME's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP37.6%

EPS Next 2Y11.31%

EPS Next 3YN/A

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FIRST MERCHANTS CORP

NASDAQ:FRME (10/20/2025, 2:10:48 PM)

36.51

+0.8 (+2.24%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)07-23 2025-07-23/amc

Earnings (Next)10-22 2025-10-22/amc

Inst Owners78.64%

Inst Owner Change-0.01%

Ins Owners1.62%

Ins Owner Change6.49%

Market Cap2.11B

Analysts80

Price Target48.35 (32.43%)

Short Float %1.11%

Short Ratio2.19

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.08%

Yearly Dividend1.42

Dividend Growth(5Y)7.59%

DP37.6%

Div Incr Years4

Div Non Decr Years4

Ex-Date09-05 2025-09-05 (0.36)

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)1.56%

Min EPS beat(2)0.83%

Max EPS beat(2)2.3%

EPS beat(4)3

Avg EPS beat(4)-2.72%

Min EPS beat(4)-17.32%

Max EPS beat(4)3.29%

EPS beat(8)4

Avg EPS beat(8)-3.66%

EPS beat(12)5

Avg EPS beat(12)-3.48%

EPS beat(16)8

Avg EPS beat(16)-2.3%

Revenue beat(2)0

Avg Revenue beat(2)-7.22%

Min Revenue beat(2)-8.02%

Max Revenue beat(2)-6.41%

Revenue beat(4)1

Avg Revenue beat(4)-4.76%

Min Revenue beat(4)-8.07%

Max Revenue beat(4)3.45%

Revenue beat(8)1

Avg Revenue beat(8)-5.18%

Revenue beat(12)1

Avg Revenue beat(12)-5.32%

Revenue beat(16)1

Avg Revenue beat(16)-5.12%

PT rev (1m)1.21%

PT rev (3m)4.94%

EPS NQ rev (1m)-0.84%

EPS NQ rev (3m)-0.38%

EPS NY rev (1m)0%

EPS NY rev (3m)1.16%

Revenue NQ rev (1m)-0.33%

Revenue NQ rev (3m)-1.38%

Revenue NY rev (1m)-0.26%

Revenue NY rev (3m)-1%

Valuation

		Industry Rank	Sector Rank
PE	10.06
Fwd PE	9.1
P/S	3.21
P/FCF	8.13
P/OCF	8.13
P/B	0.9
P/tB	1.3
EV/EBITDA	N/A

EPS(TTM)3.63

EY9.94%

EPS(NY)4.01

Fwd EY10.99%

FCF(TTM)4.49

FCFY12.3%

OCF(TTM)4.49

OCFY12.3%

SpS11.38

BVpS40.61

TBVpS28

PEG (NY)0.48

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	1.2%
ROE	9.53%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	34.03%
GM	N/A
FCFM	39.49%

ROA(3y)1.18%

ROA(5y)1.18%

ROE(3y)9.79%

ROE(5y)9.61%

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 3Y-7.92%

PM growth 5Y-3.62%

GM growth 3YN/A

GM growth 5YN/A

F-Score9

Asset Turnover0.04

Health

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	1.01
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	116.03%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score9

WACC17.74%

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)123.83%

Profit Quality(5y)121.91%

High Growth Momentum

Growth

EPS 1Y (TTM)8.36%

EPS 3Y-5.26%

EPS 5Y-0.72%

EPS Q2Q%44.12%

EPS Next Y21.07%

EPS Next 2Y11.31%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)4.18%

Revenue growth 3Y7.54%

Revenue growth 5Y7.84%

Sales Q2Q%2.76%

Revenue Next Year3.2%

Revenue Next 2Y8.56%

Revenue Next 3Y8.88%

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 1Y-9.38%

FCF growth 3Y8.68%

FCF growth 5Y8.54%

OCF growth 1Y-9.38%

OCF growth 3Y8.68%

OCF growth 5Y8.54%

FIRST MERCHANTS CORP (FRME) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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