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 has a valuation in line with the averages, but it does not seem to be growing. 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.

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

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

The Return On Assets of FRME (1.12%) is better than 74.94% of its industry peers.

With a Return On Equity value of 8.87%, FRME perfoms like the industry average, outperforming 53.92% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	1.12%
ROE	8.87%
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

Looking at the Profit Margin, with a value of 31.67%, FRME belongs to the top of the industry, outperforming 84.56% of the companies in the same industry.

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)	31.67%
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.

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

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

2.2 Solvency

FRME has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.

FRME has a Debt to FCF ratio of 1.38. This is in the better half of the industry: FRME outperforms 63.29% of its industry peers.

FRME has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.

FRME's Debt to Equity ratio of 0.16 is in line compared to the rest of the industry. FRME outperforms 53.92% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.16
Debt/FCF	1.38
Altman-Z	N/A

ROIC/WACCN/A

WACC18.18%

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 slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.76%.

Measured over the past years, FRME shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.72% on average per year.

Looking at the last year, FRME shows a small growth in Revenue. The Revenue has grown by 2.80% 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)-9.76%

EPS 3Y-5.26%

EPS 5Y-0.72%

EPS Q2Q%10.59%

Revenue 1Y (TTM)2.8%

Revenue growth 3Y7.54%

Revenue growth 5Y7.84%

Sales Q2Q%4.31%

3.2 Future

FRME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.43% yearly.

FRME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.64% yearly.

EPS Next Y19.68%

EPS Next 2Y12.43%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year4.24%

Revenue Next 2Y4.64%

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

The Price/Earnings ratio is 11.36, which indicates a very decent valuation of FRME.

Based on the Price/Earnings ratio, FRME is valued a bit cheaper than the industry average as 61.27% of the companies are valued more expensively.

When comparing the Price/Earnings ratio of FRME to the average of the S&P500 Index (26.69), we can say FRME is valued rather cheaply.

A Price/Forward Earnings ratio of 9.23 indicates a reasonable valuation of FRME.

FRME's Price/Forward Earnings is on the same level as the industry average.

When comparing the Price/Forward Earnings ratio of FRME to the average of the S&P500 Index (21.29), we can say FRME is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.36
Fwd PE	9.23

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, FRME is valued a bit cheaper than 78.23% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	8.2
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.

FRME's earnings are expected to grow with 12.43% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.58

PEG (5Y)N/A

EPS Next 2Y12.43%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

FRME has a Yearly Dividend Yield of 4.03%, which is a nice return.

Compared to an average industry Dividend Yield of 3.61, FRME pays a bit more dividend than its industry peers.

FRME's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.

		Industry Rank	Sector Rank
Dividend Yield	4.03%

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

40.51% of the earnings are spent on dividend by FRME. This is a bit on the high side, but may be sustainable.

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

DP40.51%

EPS Next 2Y12.43%

EPS Next 3YN/A

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FIRST MERCHANTS CORP

NASDAQ:FRME (6/26/2025, 2:41:02 PM)

37.815

+0.68 (+1.84%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)04-24 2025-04-24/bmo

Earnings (Next)07-23 2025-07-23/bmo

Inst Owners79.97%

Inst Owner Change-34.89%

Ins Owners1.49%

Ins Owner Change1.36%

Market Cap2.20B

Analysts81.67

Price Target46.07 (21.83%)

Short Float %1.27%

Short Ratio2.7

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.03%

Yearly Dividend1.42

Dividend Growth(5Y)7.59%

DP40.51%

Div Incr Years4

Div Non Decr Years4

Ex-Date06-06 2025-06-06 (0.36)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)-8.25%

Min EPS beat(2)-17.32%

Max EPS beat(2)0.83%

EPS beat(4)2

Avg EPS beat(4)-7.41%

Min EPS beat(4)-17.32%

Max EPS beat(4)3.29%

EPS beat(8)3

Avg EPS beat(8)-4.15%

EPS beat(12)5

Avg EPS beat(12)-3.39%

EPS beat(16)8

Avg EPS beat(16)-1.85%

Revenue beat(2)1

Avg Revenue beat(2)-2.28%

Min Revenue beat(2)-8.02%

Max Revenue beat(2)3.45%

Revenue beat(4)1

Avg Revenue beat(4)-3.74%

Min Revenue beat(4)-8.07%

Max Revenue beat(4)3.45%

Revenue beat(8)1

Avg Revenue beat(8)-5.25%

Revenue beat(12)1

Avg Revenue beat(12)-4.87%

Revenue beat(16)2

Avg Revenue beat(16)-4.68%

PT rev (1m)0%

PT rev (3m)-11.44%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-2.42%

EPS NY rev (1m)0%

EPS NY rev (3m)-1.89%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-1.58%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-1.81%

Valuation

		Industry Rank	Sector Rank
PE	11.36
Fwd PE	9.23
P/S	3.38
P/FCF	8.2
P/OCF	8.2
P/B	0.95
P/tB	1.38
EV/EBITDA	N/A

EPS(TTM)3.33

EY8.81%

EPS(NY)4.1

Fwd EY10.83%

FCF(TTM)4.61

FCFY12.2%

OCF(TTM)4.61

OCFY12.2%

SpS11.2

BVpS40

TBVpS27.47

PEG (NY)0.58

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	1.12%
ROE	8.87%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	31.67%
GM	N/A
FCFM	41.18%

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-Score7

Asset Turnover0.04

Health

		Industry Rank	Sector Rank
Debt/Equity	0.16
Debt/FCF	1.38
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	130.03%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score7

WACC18.18%

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)-9.76%

EPS 3Y-5.26%

EPS 5Y-0.72%

EPS Q2Q%10.59%

EPS Next Y19.68%

EPS Next 2Y12.43%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)2.8%

Revenue growth 3Y7.54%

Revenue growth 5Y7.84%

Sales Q2Q%4.31%

Revenue Next Year4.24%

Revenue Next 2Y4.64%

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-9.01%

FCF growth 3Y8.68%

FCF growth 5Y8.54%

OCF growth 1Y-9.01%

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