FIRST MERCHANTS CORP (FRME) Stock Fundamental Analysis
NASDAQ:FRME - Nasdaq - US3208171096 - Common Stock - Currency: USD
Taking everything into account, FRME scores 4 out of 10 in our fundamental rating. FRME was compared to 398 industry peers in the Banks industry. FRME has a medium profitability rating, but doesn't score so well on its financial health evaluation. FRME has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally FRME also has an excellent dividend rating.
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 Return On Assets of 1.09%. This is in the better half of the industry: FRME outperforms 72.86% of its industry peers.
Looking at the Return On Equity, with a value of 8.66%, FRME is in line with its industry, outperforming 53.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.09% | ||
| ROE | 8.66% | ||
| 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 30.85%, FRME belongs to the best of the industry, outperforming 83.67% 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) | 30.85% | ||
| 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
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 reduced compared to 1 year ago.
Compared to 5 years ago, FRME has more shares outstanding
FRME has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of FRME is 1.26, which is an excellent value as it means it would take FRME, only 1.26 years of fcf income to pay off all of its debts.
FRME has a Debt to FCF ratio of 1.26. This is in the better half of the industry: FRME outperforms 66.58% of its industry peers.
FRME has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.15, FRME is in line with its industry, outperforming 59.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC17.71%
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 -9.76% in the last year.
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.
The Revenue has decreased by -0.66% in the past 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)-9.76%
EPS 3Y-5.26%
EPS 5Y-0.72%
EPS Q2Q%10.59%
Revenue 1Y (TTM)-0.66%
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 13.52% yearly.
Based on estimates for the next years, FRME will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.
EPS Next Y22.04%
EPS Next 2Y13.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.09%
Revenue Next 2Y4.99%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.68, the valuation of FRME can be described as very reasonable.
Based on the Price/Earnings ratio, FRME is valued a bit cheaper than the industry average as 63.32% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.78. FRME is valued rather cheaply when compared to this.
FRME is valuated reasonably with a Price/Forward Earnings ratio of 8.52.
Based on the Price/Forward Earnings ratio, FRME is valued a bit cheaper than the industry average as 69.85% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FRME to the average of the S&P500 Index (21.32), we can say FRME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
FRME's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FRME is cheaper than 78.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.82 | ||
| 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 13.52% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y13.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.84%, FRME has a reasonable but not impressive dividend return.
FRME's Dividend Yield is a higher than the industry average which is at 3.52.
Compared to an average S&P500 Dividend Yield of 2.46, FRME pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
5.2 History
On average, the dividend of FRME grows each year by 7.59%, which is quite nice.
FRME has been paying a dividend for at least 10 years, so it has 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
41.85% 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.
DP41.85%
EPS Next 2Y13.52%
EPS Next 3YN/A
35.56
-0.94 (-2.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners76.44%
Inst Owner Change-32.74%
Ins Owners1.52%
Ins Owner Change-0.25%
Market Cap2.08B
Analysts81.67
Price Target50.32 (41.51%)
Short Float %1.07%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
Yearly Dividend1.42
Dividend Growth(5Y)7.59%
DP41.85%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.01%
Min EPS beat(2)-17.32%
Max EPS beat(2)3.29%
EPS beat(4)2
Avg EPS beat(4)-7.31%
Min EPS beat(4)-17.32%
Max EPS beat(4)3.29%
EPS beat(8)2
Avg EPS beat(8)-5.24%
EPS beat(12)5
Avg EPS beat(12)-3.27%
EPS beat(16)8
Avg EPS beat(16)-0.78%
Revenue beat(2)1
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-8.07%
Max Revenue beat(2)3.45%
Revenue beat(4)1
Avg Revenue beat(4)-3.58%
Min Revenue beat(4)-8.07%
Max Revenue beat(4)3.45%
Revenue beat(8)1
Avg Revenue beat(8)-5.14%
Revenue beat(12)1
Avg Revenue beat(12)-4.69%
Revenue beat(16)2
Avg Revenue beat(16)-4.55%
PT rev (1m)-3.27%
PT rev (3m)7.25%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)6.65%
EPS NY rev (1m)0.04%
EPS NY rev (3m)9.03%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)2.9%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)3.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 8.52 | ||
| P/S | 3.22 | ||
| P/FCF | 7.82 | ||
| P/OCF | 7.82 | ||
| P/B | 0.9 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.33
EY9.36%
EPS(NY)4.18
Fwd EY11.74%
FCF(TTM)4.55
FCFY12.79%
OCF(TTM)4.55
OCFY12.79%
SpS11.05
BVpS39.38
TBVpS26.88
PEG (NY)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.09% | ||
| ROE | 8.66% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 30.85% | ||
| GM | N/A | ||
| FCFM | 41.16% |
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-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.26 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 133.42% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC17.71%
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 Y22.04%
EPS Next 2Y13.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y7.54%
Revenue growth 5Y7.84%
Sales Q2Q%4.31%
Revenue Next Year6.09%
Revenue Next 2Y4.99%
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 1Y2.85%
FCF growth 3Y8.68%
FCF growth 5Y8.54%
OCF growth 1Y2.85%
OCF growth 3Y8.68%
OCF growth 5Y8.54%