FRME Fundamental Analysis - FIRST MERCHANTS CORP

Fundamental Rating

FRME gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 395 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 is not valued too expensively and it also shows a decent growth rate. Finally 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.

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

1.2 Ratios

Looking at the Return On Assets, with a value of 1.20%, FRME is in the better half of the industry, outperforming 78.73% of the companies in the same industry.

FRME has a Return On Equity of 9.53%. This is in the better half of the industry: FRME outperforms 62.28% 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's Profit Margin of 34.03% is amongst the best of the industry. FRME outperforms 89.37% 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.

FRME has less shares outstanding than it did 1 year ago.

FRME has more shares outstanding than it did 5 years ago.

FRME has a worse debt/assets ratio than last year.

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 69.87% of its industry peers.

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 66.33% of its industry peers.

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

ROIC/WACCN/A

WACC16.87%

2.3 Liquidity

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

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WACC

Debt/Equity

How to determine the health of a company

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.

FRME shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.72% yearly.

The Revenue has been growing slightly by 4.18% in the past 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.

The Revenue is expected to grow by 3.95% on average over the next years.

EPS Next Y21.07%

EPS Next 2Y11.31%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year3.71%

Revenue Next 2Y3.95%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 11.54 indicates a reasonable valuation of FRME.

Based on the Price/Earnings ratio, FRME is valued a bit cheaper than 68.35% of the companies in the same industry.

When comparing the Price/Earnings ratio of FRME to the average of the S&P500 Index (27.03), we can say FRME is valued rather cheaply.

With a Price/Forward Earnings ratio of 10.43, the valuation of FRME can be described as very reasonable.

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

Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, FRME is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.54
Fwd PE	10.43

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, FRME is valued a bit cheaper than 76.20% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	9.31
EV/EBITDA	N/A

4.3 Compensation for Growth

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

PEG (NY)0.55

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 3.46%. Purely for dividend investing, there may be better candidates out there.

FRME's Dividend Yield is a higher than the industry average which is at 3.18.

FRME's Dividend Yield is a higher than the S&P500 average which is at 2.32.

		Industry Rank	Sector Rank
Dividend Yield	3.46%

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

37.60% of the earnings are spent on dividend by FRME. This is a low number and 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 (9/4/2025, 8:08:36 PM)

After market: 41.88 0 (0%)

41.88

+0.7 (+1.7%)

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 Owners80.89%

Inst Owner Change-0.17%

Ins Owners1.53%

Ins Owner Change6.49%

Market Cap2.42B

Analysts81.67

Price Target47.77 (14.06%)

Short Float %1.13%

Short Ratio2.01

Dividend

		Industry Rank	Sector Rank
Dividend Yield	3.46%

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)3.69%

PT rev (3m)3.69%

EPS NQ rev (1m)0.87%

EPS NQ rev (3m)-2.45%

EPS NY rev (1m)1.16%

EPS NY rev (3m)1.16%

Revenue NQ rev (1m)-0.29%

Revenue NQ rev (3m)-2.13%

Revenue NY rev (1m)-0.22%

Revenue NY rev (3m)-0.51%

Valuation

		Industry Rank	Sector Rank
PE	11.54
Fwd PE	10.43
P/S	3.68
P/FCF	9.31
P/OCF	9.31
P/B	1.03
P/tB	1.49
EV/EBITDA	N/A

EPS(TTM)3.63

EY8.67%

EPS(NY)4.01

Fwd EY9.58%

FCF(TTM)4.5

FCFY10.74%

OCF(TTM)4.5

OCFY10.74%

SpS11.39

BVpS40.67

TBVpS28.05

PEG (NY)0.55

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

WACC16.87%

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 Year3.71%

Revenue Next 2Y3.95%

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

More info and screens