FRME Fundamental Analysis - FIRST MERCHANTS CORP

Fundamental Rating

Taking everything into account, FRME scores 5 out of 10 in our fundamental rating. FRME was compared to 391 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 decent growth rate and is not valued too expensively. Finally FRME also has an excellent dividend rating.

Quickly go to:

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.

Each year in the past 5 years FRME has been profitable.

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

1.2 Ratios

FRME has a better Return On Assets (1.20%) than 78.52% of its industry peers.

Looking at the Return On Equity, with a value of 9.53%, FRME is in the better half of the industry, outperforming 61.89% 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

FRME's Profit Margin of 34.03% is amongst the best of the industry. FRME outperforms 89.26% of its industry peers.

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)	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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.

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

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.

FRME has a better Debt to FCF ratio (1.01) than 68.80% of its industry peers.

FRME has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.

FRME's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. FRME outperforms 66.50% of its industry peers.

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

ROIC/WACCN/A

WACC17.54%

2.3 Liquidity

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

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 8.36% over the past year.

The Earnings Per Share has been decreasing by -0.72% on average over the past years.

FRME shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.

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

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 8.88% on average over the next years. This is quite good.

EPS Next Y21.07%

EPS Next 2Y11.31%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year3.2%

Revenue Next 2Y8.56%

Revenue Next 3Y8.88%

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 stable.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.12, the valuation of FRME can be described as reasonable.

Compared to the rest of the industry, the Price/Earnings ratio of FRME indicates a somewhat cheap valuation: FRME is cheaper than 73.66% of the companies listed in the same industry.

FRME is valuated cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.

The Price/Forward Earnings ratio is 9.16, which indicates a very decent valuation of FRME.

Based on the Price/Forward Earnings ratio, FRME is valued a bit cheaper than the industry average as 63.17% of the companies are valued more expensively.

Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, FRME is valued rather cheaply.

		Industry Rank	Sector Rank
PE	10.12
Fwd PE	9.16

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, FRME is valued a bit cheaper than the industry average as 79.80% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	8.18
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)0.48

PEG (5Y)N/A

EPS Next 2Y11.31%

EPS Next 3YN/A

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

FRME has a Yearly Dividend Yield of 4.08%, which is a nice return.

FRME's Dividend Yield is a higher than the industry average which is at 3.57.

Compared to an average S&P500 Dividend Yield of 2.34, FRME pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.08%

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

37.60% of the earnings are spent on dividend by FRME. This is a low number and sustainable payout ratio.

The dividend of FRME is growing, but earnings are growing more, so the dividend growth is sustainable.

DP37.6%

EPS Next 2Y11.31%

EPS Next 3YN/A

More info and screens

Find the best dividend stocks

Show peers with best dividend

FIRST MERCHANTS CORP

NASDAQ:FRME (10/20/2025, 8:00:01 PM)

After market: 36.75 0 (0%)

36.75

+1.04 (+2.91%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

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

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

Inst Owners78.64%

Inst Owner Change-0.01%

Ins Owners1.62%

Ins Owner Change6.49%

Market Cap2.12B

Analysts80

Price Target48.35 (31.56%)

Short Float %1.11%

Short Ratio2.19

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.08%

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)1.21%

PT rev (3m)4.94%

EPS NQ rev (1m)-0.84%

EPS NQ rev (3m)-0.38%

EPS NY rev (1m)0%

EPS NY rev (3m)1.16%

Revenue NQ rev (1m)-0.33%

Revenue NQ rev (3m)-1.38%

Revenue NY rev (1m)-0.26%

Revenue NY rev (3m)-1%

Valuation

		Industry Rank	Sector Rank
PE	10.12
Fwd PE	9.16
P/S	3.23
P/FCF	8.18
P/OCF	8.18
P/B	0.9
P/tB	1.31
EV/EBITDA	N/A

EPS(TTM)3.63

EY9.88%

EPS(NY)4.01

Fwd EY10.92%

FCF(TTM)4.49

FCFY12.22%

OCF(TTM)4.49

OCFY12.22%

SpS11.38

BVpS40.61

TBVpS28

PEG (NY)0.48

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

WACC17.54%

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 Year3.2%

Revenue Next 2Y8.56%

Revenue Next 3Y8.88%

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