FRME Fundamental Analysis - FIRST MERCHANTS CORP

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to FRME. FRME was compared to 392 industry peers in the Banks industry. There are concerns on the financial health of FRME while its profitability can be described as average. FRME is not valued too expensively and it also shows a decent growth rate. 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.

In the past year FRME had a positive cash flow from operations.

In the past 5 years FRME has always been profitable.

FRME had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a decent Return On Assets value of 1.20%, FRME is doing good in the industry, outperforming 78.57% of the companies in the same industry.

Looking at the Return On Equity, with a value of 9.53%, FRME is in the better half of the industry, outperforming 61.99% of the companies in the same industry.

		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

With an excellent Profit Margin value of 34.03%, FRME belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.

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)	34.03%
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

Compared to 5 years ago, FRME has more shares outstanding

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.

The Debt to FCF ratio of FRME (1.01) is better than 69.64% of its industry peers.

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

FRME has a Debt to Equity ratio of 0.11. This is in the better half of the industry: FRME outperforms 66.33% of its industry peers.

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

ROIC/WACCN/A

WACC17.55%

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.

FRME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.84% yearly.

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

The Earnings Per Share is expected to grow by 11.31% on average over the next years. This is quite good.

The Revenue is expected to grow by 3.74% on average over the next years.

EPS Next Y21.07%

EPS Next 2Y11.31%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year3.46%

Revenue Next 2Y3.74%

Revenue Next 3YN/A

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 decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.53, the valuation of FRME can be described as reasonable.

Based on the Price/Earnings ratio, FRME is valued a bit cheaper than 72.45% of the companies in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 27.32, FRME is valued rather cheaply.

FRME is valuated reasonably with a Price/Forward Earnings ratio of 9.52.

Compared to the rest of the industry, the Price/Forward Earnings ratio of FRME is on the same level as its industry peers.

FRME's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.89.

		Industry Rank	Sector Rank
PE	10.53
Fwd PE	9.52

4.2 Price Multiples

77.81% 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	8.5
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)0.5

PEG (5Y)N/A

EPS Next 2Y11.31%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

FRME has a Yearly Dividend Yield of 3.52%.

FRME's Dividend Yield is a higher than the industry average which is at 3.47.

Compared to an average S&P500 Dividend Yield of 2.38, FRME pays a bit more dividend than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	3.52%

5.2 History

On average, the dividend of FRME grows each year by 7.59%, which is quite nice.

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 (9/26/2025, 8:00:00 PM)

After market: 38.15 -0.07 (-0.18%)

38.22

-0.74 (-1.9%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

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

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

Inst Owners78.64%

Inst Owner Change-0.17%

Ins Owners1.62%

Ins Owner Change6.49%

Market Cap2.21B

Analysts81.67

Price Target47.77 (24.99%)

Short Float %1.08%

Short Ratio2.32

Dividend

		Industry Rank	Sector Rank
Dividend Yield	3.52%

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)0%

PT rev (3m)3.69%

EPS NQ rev (1m)0%

EPS NQ rev (3m)0.47%

EPS NY rev (1m)0%

EPS NY rev (3m)1.16%

Revenue NQ rev (1m)-0.32%

Revenue NQ rev (3m)-1.05%

Revenue NY rev (1m)-0.23%

Revenue NY rev (3m)-0.74%

Valuation

		Industry Rank	Sector Rank
PE	10.53
Fwd PE	9.52
P/S	3.35
P/FCF	8.5
P/OCF	8.5
P/B	0.94
P/tB	1.36
EV/EBITDA	N/A

EPS(TTM)3.63

EY9.5%

EPS(NY)4.01

Fwd EY10.5%

FCF(TTM)4.5

FCFY11.77%

OCF(TTM)4.5

OCFY11.77%

SpS11.39

BVpS40.67

TBVpS28.05

PEG (NY)0.5

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

WACC17.55%

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 Year3.46%

Revenue Next 2Y3.74%

Revenue Next 3YN/A

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

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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