FIRST MERCHANTS CORP (FRME) Fundamental Analysis & Valuation

NASDAQ:FRME • US3208171096

Current stock price

37.85 USD
-0.42 (-1.1%)
At close:
37.85 USD
0 (0%)
After Hours:

This FRME fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. FRME Profitability Analysis

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.
  • Each year in the past 5 years FRME had a positive operating cash flow.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M

1.2 Ratios

  • FRME has a Return On Assets of 1.18%. This is in the better half of the industry: FRME outperforms 72.11% of its industry peers.
  • Looking at the Return On Equity, with a value of 9.09%, FRME is in line with its industry, outperforming 49.21% of the companies in the same industry.
Industry RankSector Rank
ROA 1.18%
ROE 9.09%
ROIC N/A
ROA(3y)1.16%
ROA(5y)1.21%
ROE(3y)9.21%
ROE(5y)9.84%
ROIC(3y)N/A
ROIC(5y)N/A
FRME Yearly ROA, ROE, ROICFRME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • The Profit Margin of FRME (33.81%) is better than 87.37% of its industry peers.
  • FRME's Profit Margin has improved in the last couple of years.
  • The Operating Margin and Gross Margin are not available for FRME so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 33.81%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-1.28%
PM growth 5Y2.28%
GM growth 3YN/A
GM growth 5YN/A
FRME Yearly Profit, Operating, Gross MarginsFRME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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3

2. FRME Health Analysis

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.
  • FRME has a better debt/assets ratio than last year.
FRME Yearly Shares OutstandingFRME Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
FRME Yearly Total Debt VS Total AssetsFRME Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • The Debt to FCF ratio of FRME is 0.71, which is an excellent value as it means it would take FRME, only 0.71 years of fcf income to pay off all of its debts.
  • FRME has a better Debt to FCF ratio (0.71) than 75.00% of its industry peers.
  • A Debt/Equity ratio of 0.08 indicates that FRME is not too dependend on debt financing.
  • The Debt to Equity ratio of FRME (0.08) is better than 71.58% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF 0.71
Altman-Z N/A
ROIC/WACCN/A
WACC15.94%
FRME Yearly LT Debt VS Equity VS FCFFRME Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. FRME Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 19.75% over the past year.
  • FRME shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.21% yearly.
  • The Revenue has been growing slightly by 2.51% in the past year.
  • FRME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.15% yearly.
EPS 1Y (TTM)19.75%
EPS 3Y-1.26%
EPS 5Y7.21%
EPS Q2Q%28.95%
Revenue 1Y (TTM)2.51%
Revenue growth 3Y1.82%
Revenue growth 5Y6.15%
Sales Q2Q%-2.79%

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 9.27% yearly.
  • FRME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.68% yearly.
EPS Next Y7.93%
EPS Next 2Y9.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.8%
Revenue Next 2Y11.68%
Revenue Next 3YN/A
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
FRME Yearly Revenue VS EstimatesFRME Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
FRME Yearly EPS VS EstimatesFRME Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

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5

4. FRME Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.76 indicates a reasonable valuation of FRME.
  • 78.95% of the companies in the same industry are more expensive than FRME, based on the Price/Earnings ratio.
  • FRME's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.88.
  • A Price/Forward Earnings ratio of 9.04 indicates a reasonable valuation of FRME.
  • Based on the Price/Forward Earnings ratio, FRME is valued a bit cheaper than 69.74% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of FRME to the average of the S&P500 Index (22.19), we can say FRME is valued rather cheaply.
Industry RankSector Rank
PE 9.76
Fwd PE 9.04
FRME Price Earnings VS Forward Price EarningsFRME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, FRME is valued a bit cheaper than 77.37% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.46
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.23
PEG (5Y)1.35
EPS Next 2Y9.27%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. FRME Dividend Analysis

5.1 Amount

  • FRME has a Yearly Dividend Yield of 3.76%.
  • FRME's Dividend Yield is a higher than the industry average which is at 2.69.
  • FRME's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.76%

5.2 History

  • On average, the dividend of FRME grows each year by 7.31%, 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)7.31%
Div Incr Years4
Div Non Decr Years4
FRME Yearly Dividends per shareFRME Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1

5.3 Sustainability

  • FRME pays out 37.83% of its income as dividend. This is a sustainable payout ratio.
  • FRME's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.83%
EPS Next 2Y9.27%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
FRME Dividend Payout.FRME Dividend Payout, showing the Payout Ratio.FRME Dividend Payout.PayoutRetained Earnings

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FRME Fundamentals: All Metrics, Ratios and Statistics

FIRST MERCHANTS CORP

NASDAQ:FRME (3/27/2026, 8:20:26 PM)

After market: 37.85 0 (0%)

37.85

-0.42 (-1.1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-26
Earnings (Next)04-22
Inst Owners71.08%
Inst Owner Change30.28%
Ins Owners1.67%
Ins Owner Change-1.03%
Market Cap2.40B
Revenue(TTM)662.95M
Net Income(TTM)224.13M
Analysts78.33
Price Target47.74 (26.13%)
Short Float %1.62%
Short Ratio2.48
Dividend
Industry RankSector Rank
Dividend Yield 3.76%
Yearly Dividend1.48
Dividend Growth(5Y)7.31%
DP37.83%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.51%
Min EPS beat(2)0.05%
Max EPS beat(2)0.98%
EPS beat(4)4
Avg EPS beat(4)1.04%
Min EPS beat(4)0.05%
Max EPS beat(4)2.3%
EPS beat(8)6
Avg EPS beat(8)-3.14%
EPS beat(12)6
Avg EPS beat(12)-3.15%
EPS beat(16)9
Avg EPS beat(16)-2.19%
Revenue beat(2)0
Avg Revenue beat(2)-4.09%
Min Revenue beat(2)-5.68%
Max Revenue beat(2)-2.5%
Revenue beat(4)0
Avg Revenue beat(4)-5.65%
Min Revenue beat(4)-8.02%
Max Revenue beat(4)-2.5%
Revenue beat(8)1
Avg Revenue beat(8)-4.62%
Revenue beat(12)1
Avg Revenue beat(12)-5.31%
Revenue beat(16)1
Avg Revenue beat(16)-4.93%
PT rev (1m)2.3%
PT rev (3m)2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.58%
EPS NY rev (1m)0.69%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.04%
Valuation
Industry RankSector Rank
PE 9.76
Fwd PE 9.04
P/S 3.62
P/FCF 8.46
P/OCF 8.46
P/B 0.97
P/tB 1.38
EV/EBITDA N/A
EPS(TTM)3.88
EY10.25%
EPS(NY)4.19
Fwd EY11.06%
FCF(TTM)4.47
FCFY11.82%
OCF(TTM)4.47
OCFY11.82%
SpS10.46
BVpS38.91
TBVpS27.46
PEG (NY)1.23
PEG (5Y)1.35
Graham Number58.28
Profitability
Industry RankSector Rank
ROA 1.18%
ROE 9.09%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 33.81%
GM N/A
FCFM 42.79%
ROA(3y)1.16%
ROA(5y)1.21%
ROE(3y)9.21%
ROE(5y)9.84%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-1.28%
PM growth 5Y2.28%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF 0.71
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 126.56%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC15.94%
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)125.54%
Profit Quality(5y)119.79%
High Growth Momentum
Growth
EPS 1Y (TTM)19.75%
EPS 3Y-1.26%
EPS 5Y7.21%
EPS Q2Q%28.95%
EPS Next Y7.93%
EPS Next 2Y9.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.51%
Revenue growth 3Y1.82%
Revenue growth 5Y6.15%
Sales Q2Q%-2.79%
Revenue Next Year17.8%
Revenue Next 2Y11.68%
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 1Y6.55%
FCF growth 3Y1.91%
FCF growth 5Y6.84%
OCF growth 1Y6.55%
OCF growth 3Y1.91%
OCF growth 5Y6.84%

FIRST MERCHANTS CORP / FRME Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for FIRST MERCHANTS CORP?

ChartMill assigns a fundamental rating of 5 / 10 to FRME.


What is the valuation status for FRME stock?

ChartMill assigns a valuation rating of 5 / 10 to FIRST MERCHANTS CORP (FRME). This can be considered as Fairly Valued.


What is the profitability of FRME stock?

FIRST MERCHANTS CORP (FRME) has a profitability rating of 4 / 10.


What is the earnings growth outlook for FIRST MERCHANTS CORP?

The Earnings per Share (EPS) of FIRST MERCHANTS CORP (FRME) is expected to grow by 7.93% in the next year.


Can you provide the dividend sustainability for FRME stock?

The dividend rating of FIRST MERCHANTS CORP (FRME) is 7 / 10 and the dividend payout ratio is 37.83%.