FRME Fundamental Analysis - FIRST MERCHANTS CORP

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to FRME. FRME was compared to 396 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 valuation in line with the averages, but it does not seem to be growing.

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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.

FRME had positive earnings in each of the past 5 years.

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

1.2 Ratios

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

Looking at the Return On Equity, with a value of 8.87%, FRME is in line with its industry, 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 84.81% of the companies in the same industry.

In the last couple of years the Profit Margin of FRME has declined.

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

The Debt to FCF ratio of FRME is 1.38, which is an excellent value as it means it would take FRME, only 1.38 years of fcf income to pay off all of its debts.

FRME's Debt to FCF ratio of 1.38 is fine compared to the rest 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.

The Debt to Equity ratio of FRME (0.16) is comparable to the rest of the industry.

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

ROIC/WACCN/A

WACC17%

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

The earnings per share for FRME have decreased by -9.76% in the last year.

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

FRME shows a small growth in Revenue. In the last year, the Revenue has grown by 2.80%.

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

Based on estimates for the next years, FRME will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.43% on average per year.

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.

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

With a Price/Earnings ratio of 12.23, FRME is valued correctly.

The rest of the industry has a similar Price/Earnings ratio as FRME.

The average S&P500 Price/Earnings ratio is at 27.45. FRME is valued rather cheaply when compared to this.

Based on the Price/Forward Earnings ratio of 9.95, the valuation of FRME can be described as 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 21.90, FRME is valued rather cheaply.

		Industry Rank	Sector Rank
PE	12.23
Fwd PE	9.95

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of FRME indicates a somewhat cheap valuation: FRME is cheaper than 76.96% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	8.83
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.

A more expensive valuation may be justified as FRME's earnings are expected to grow with 12.43% in the coming years.

PEG (NY)0.62

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 3.53%.

Compared to an average industry Dividend Yield of 3.40, FRME pays a bit more dividend than its industry peers.

FRME's Dividend Yield is a higher than the S&P500 average which is at 2.38.

		Industry Rank	Sector Rank
Dividend Yield	3.53%

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 (7/3/2025, 7:29:03 PM)

After market: 40.74 0 (0%)

40.74

+0.41 (+1.02%)

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 Cap2.38B

Analysts81.67

Price Target46.07 (13.08%)

Short Float %1.34%

Short Ratio2.62

Dividend

		Industry Rank	Sector Rank
Dividend Yield	3.53%

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	12.23
Fwd PE	9.95
P/S	3.64
P/FCF	8.83
P/OCF	8.83
P/B	1.02
P/tB	1.48
EV/EBITDA	N/A

EPS(TTM)3.33

EY8.17%

EPS(NY)4.1

Fwd EY10.05%

FCF(TTM)4.61

FCFY11.33%

OCF(TTM)4.61

OCFY11.33%

SpS11.2

BVpS40

TBVpS27.47

PEG (NY)0.62

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

WACC17%

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

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