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FIRST MERCHANTS CORP (FRME) Stock Fundamental Analysis

NASDAQ:FRME - Nasdaq - US3208171096 - Common Stock - Currency: USD

37.22  -0.48 (-1.27%)

After market: 37.22 0 (0%)

Fundamental Rating

4

Taking everything into account, FRME scores 4 out of 10 in our fundamental rating. 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 is valued correctly, but it does not seem to be growing. Finally FRME also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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4

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.
In the past 5 years FRME always reported a positive cash flow from operatings.
FRME Yearly Net Income VS EBIT VS OCF VS FCFFRME Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

1.2 Ratios

The Return On Assets of FRME (1.12%) is better than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 8.87%, FRME is in line with its industry, outperforming 53.79% of the companies in the same industry.
Industry RankSector 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
FRME Yearly ROA, ROE, ROICFRME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

FRME has a Profit Margin of 31.67%. This is amongst the best in the industry. FRME outperforms 84.60% 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 RankSector 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
FRME Yearly Profit, Operating, Gross MarginsFRME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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3

2. Health

2.1 Basic Checks

FRME does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, FRME has less shares outstanding
FRME has more shares outstanding than it did 5 years ago.
FRME has a worse debt/assets ratio than last year.
FRME Yearly Shares OutstandingFRME Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
FRME Yearly Total Debt VS Total AssetsFRME Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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.
Looking at the Debt to FCF ratio, with a value of 1.38, FRME is in the better half of the industry, outperforming 63.13% of the companies in the same industry.
FRME has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.16, FRME perfoms like the industry average, outperforming 54.04% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACCN/A
WACC17.44%
FRME Yearly LT Debt VS Equity VS FCFFRME Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
FRME Yearly Current Assets VS Current LiabilitesFRME Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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3

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%.
The Earnings Per Share has been decreasing by -0.72% on average over the past years.
Looking at the last year, FRME shows a small growth in Revenue. The Revenue has grown by 2.80% in the last year.
The Revenue has been growing slightly by 7.84% on average over the past years.
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.
FRME Yearly Revenue VS EstimatesFRME Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
FRME Yearly EPS VS EstimatesFRME Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.18, the valuation of FRME can be described as reasonable.
FRME's Price/Earnings ratio is in line with the industry average.
FRME's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
With a Price/Forward Earnings ratio of 9.09, the valuation of FRME can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as FRME.
When comparing the Price/Forward Earnings ratio of FRME to the average of the S&P500 Index (22.15), we can say FRME is valued rather cheaply.
Industry RankSector Rank
PE 11.18
Fwd PE 9.09
FRME Price Earnings VS Forward Price EarningsFRME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 76.01% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 8.07
EV/EBITDA N/A
FRME Per share dataFRME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
FRME's earnings are expected to grow with 12.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y12.43%
EPS Next 3YN/A

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7

5. Dividend

5.1 Amount

FRME has a Yearly Dividend Yield of 3.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.46, 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 2.38.
Industry RankSector Rank
Dividend Yield 3.8%

5.2 History

On average, the dividend of FRME grows each year by 7.59%, which is quite nice.
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
FRME Yearly Dividends per shareFRME Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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.
The dividend of FRME is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.51%
EPS Next 2Y12.43%
EPS Next 3YN/A
FRME Yearly Income VS Free CF VS DividendFRME Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
FRME Dividend Payout.FRME Dividend Payout, showing the Payout Ratio.FRME Dividend Payout.PayoutRetained Earnings

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FIRST MERCHANTS CORP

NASDAQ:FRME (6/2/2025, 4:01:45 PM)

After market: 37.22 0 (0%)

37.22

-0.48 (-1.27%)

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 Owners76.44%
Inst Owner Change-34.91%
Ins Owners1.52%
Ins Owner Change0.2%
Market Cap2.17B
Analysts81.67
Price Target46.07 (23.78%)
Short Float %1.11%
Short Ratio1.96
Dividend
Industry RankSector Rank
Dividend Yield 3.8%
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)-8.45%
PT rev (3m)-11.44%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)-1.93%
EPS NY rev (3m)-1.89%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-1.81%
Valuation
Industry RankSector Rank
PE 11.18
Fwd PE 9.09
P/S 3.32
P/FCF 8.07
P/OCF 8.07
P/B 0.93
P/tB 1.35
EV/EBITDA N/A
EPS(TTM)3.33
EY8.95%
EPS(NY)4.1
Fwd EY11%
FCF(TTM)4.61
FCFY12.4%
OCF(TTM)4.61
OCFY12.4%
SpS11.2
BVpS40
TBVpS27.47
PEG (NY)0.57
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC17.44%
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%