FIRST MERCHANTS CORP (FRME)
US3208171096 - Common Stock
Taking everything into account, FRME scores 4 out of 10 in our fundamental rating. FRME was compared to 412 industry peers in the Banks industry. While FRME is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
Looking at the Return On Assets, with a value of 1.21%, FRME is in the better half of the industry, outperforming 77.91% of the companies in the same industry.
The Return On Equity of FRME (9.87%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.21% | ||
| ROE | 9.87% | ||
| 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 34.09%. This is amongst the best in the industry. FRME outperforms 88.11% 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) | 34.09% | ||
| 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.
The number of shares outstanding for FRME has been increased compared to 1 year ago.
Compared to 5 years ago, FRME has more shares outstanding
Compared to 1 year ago, FRME has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of FRME is 1.22, which is an excellent value as it means it would take FRME, only 1.22 years of fcf income to pay off all of its debts.
FRME has a Debt to FCF ratio of 1.22. This is in the better half of the industry: FRME outperforms 72.09% of its industry peers.
FRME has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FRME (0.14) is better than 67.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.22 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16%
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 by -2.98% 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.
FRME shows a small growth in Revenue. In the last year, the Revenue has grown by 3.60%.
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)-2.98%
EPS 3Y12.58%
EPS 5Y3.96%
EPS growth Q2Q-26.89%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y9.78%
Revenue growth 5Y9.4%
Revenue growth Q2Q-9.64%
3.2 Future
FRME is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.47% yearly.
Based on estimates for the next years, FRME will show a small growth in Revenue. The Revenue will grow by 0.87% on average per year.
EPS Next Y-12.1%
EPS Next 2Y-4.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.74%
Revenue Next 2Y0.87%
Revenue Next 3YN/A
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 8.87 indicates a reasonable valuation of FRME.
63.11% of the companies in the same industry are more expensive than FRME, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FRME to the average of the S&P500 Index (28.28), we can say FRME is valued rather cheaply.
A Price/Forward Earnings ratio of 10.09 indicates a reasonable valuation of FRME.
Based on the Price/Forward Earnings ratio, FRME is valued a bit cheaper than the industry average as 60.44% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FRME to the average of the S&P500 Index (20.88), we can say FRME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
62.62% of the companies in the same industry are more expensive than FRME, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.94 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
FRME's earnings are expected to decrease with -4.47% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.24
EPS Next 2Y-4.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FRME has a Yearly Dividend Yield of 3.95%.
FRME's Dividend Yield is a higher than the industry average which is at 3.78.
Compared to an average S&P500 Dividend Yield of 2.41, FRME pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
5.2 History
The dividend of FRME is nicely growing with an annual growth rate of 10.21%!
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)10.21%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
FRME pays out 36.92% of its income as dividend. This is a sustainable payout ratio.
DP36.92%
EPS Next 2Y-4.47%
EPS Next 3YN/A
FIRST MERCHANTS CORP
NASDAQ:FRME (5/3/2024, 7:00:00 PM)
After market: 34.69 0 (0%)34.69
+0.3 (+0.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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 | 8.87 | ||
| Fwd PE | 10.09 | ||
| 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)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.21% | ||
| ROE | 9.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 34.09% | ||
| 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 Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| 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)
Growth
EPS 1Y (TTM)-2.98%
EPS 3Y12.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.6%
Revenue growth 3Y9.78%
Revenue growth 5Y
Revenue growth 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