25.7 USD
-0.45 (-1.72%)
25.95 USD
+0.25 (+0.97%)
Overall FRMEP gets a fundamental rating of 4 out of 10. We evaluated FRMEP against 383 industry peers in the Banks industry. While FRMEP is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on FRMEP. Finally FRMEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year FRMEP was profitable.
- FRMEP had a positive operating cash flow in the past year.
- In the past 5 years FRMEP has always been profitable.
- FRMEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FRMEP has a better Return On Assets (1.23%) than 78.33% of its industry peers.
- Looking at the Return On Equity, with a value of 9.59%, FRMEP is in line with its industry, outperforming 58.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 9.59% | ||
| 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
- The Profit Margin of FRMEP (34.65%) is better than 90.08% of its industry peers.
- FRMEP's Profit Margin has declined in the last couple of years.
- The Operating Margin and Gross Margin are not available for FRMEP so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 34.65% | ||
| 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
- FRMEP does not have a ROIC to compare to the WACC, probably because it is not profitable.
- FRMEP has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, FRMEP has more shares outstanding
- Compared to 1 year ago, FRMEP has a worse debt to assets ratio.
2.2 Solvency
- FRMEP has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
- FRMEP has a Debt to FCF ratio (1.40) which is comparable to the rest of the industry.
- FRMEP has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.16, FRMEP is in line with its industry, outperforming 53.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC20.03%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.25% over the past year.
- The Earnings Per Share has been decreasing by -0.72% on average over the past years.
- The Revenue has been growing slightly by 6.68% in the past year.
- Measured over the past years, FRMEP shows a small growth in Revenue. The Revenue has been growing by 7.84% on average per year.
EPS 1Y (TTM)9.25%
EPS 3Y-5.26%
EPS 5Y-0.72%
EPS Q2Q%3.16%
Revenue 1Y (TTM)6.68%
Revenue growth 3Y7.54%
Revenue growth 5Y7.84%
Sales Q2Q%6.52%
3.2 Future
- FRMEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.67% yearly.
- The Revenue is expected to grow by 8.74% on average over the next years. This is quite good.
EPS Next Y20.69%
EPS Next 2Y13.38%
EPS Next 3Y12.67%
EPS Next 5YN/A
Revenue Next Year3.04%
Revenue Next 2Y8.59%
Revenue Next 3Y8.74%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- FRMEP is valuated cheaply with a Price/Earnings ratio of 7.02.
- Compared to the rest of the industry, the Price/Earnings ratio of FRMEP indicates a rather cheap valuation: FRMEP is cheaper than 95.04% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of FRMEP to the average of the S&P500 Index (27.21), we can say FRMEP is valued rather cheaply.
- With a Price/Forward Earnings ratio of 6.17, the valuation of FRMEP can be described as very cheap.
- Based on the Price/Forward Earnings ratio, FRMEP is valued cheaply inside the industry as 95.82% of the companies are valued more expensively.
- FRMEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.02 | ||
| Fwd PE | 6.17 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, FRMEP is valued cheaply inside the industry as 92.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.5 | ||
| 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.
- FRMEP's earnings are expected to grow with 12.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y13.38%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.63%, FRMEP has a reasonable but not impressive dividend return.
- FRMEP's Dividend Yield is a higher than the industry average which is at 2.65.
- FRMEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
- The dividend of FRMEP is nicely growing with an annual growth rate of 7.59%!
- FRMEP has been paying a dividend for over 5 years, so it has already some track record.
- FRMEP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.59%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- FRMEP pays out 36.49% of its income as dividend. This is a sustainable payout ratio.
- FRMEP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.49%
EPS Next 2Y13.38%
EPS Next 3Y12.67%
FIRST MERCHANTS CORP - FRME 7 1/2 PERP / FRMEP FAQ
What is the ChartMill fundamental rating of FIRST MERCHANTS CORP - FRME 7 1/2 PERP (FRMEP) stock?
ChartMill assigns a fundamental rating of 4 / 10 to FRMEP.
What is the valuation status of FIRST MERCHANTS CORP - FRME 7 1/2 PERP (FRMEP) stock?
ChartMill assigns a valuation rating of 8 / 10 to FIRST MERCHANTS CORP - FRME 7 1/2 PERP (FRMEP). This can be considered as Undervalued.
How profitable is FIRST MERCHANTS CORP - FRME 7 1/2 PERP (FRMEP) stock?
FIRST MERCHANTS CORP - FRME 7 1/2 PERP (FRMEP) has a profitability rating of 4 / 10.
Can you provide the financial health for FRMEP stock?
The financial health rating of FIRST MERCHANTS CORP - FRME 7 1/2 PERP (FRMEP) is 2 / 10.
What is the earnings growth outlook for FIRST MERCHANTS CORP - FRME 7 1/2 PERP?
The Earnings per Share (EPS) of FIRST MERCHANTS CORP - FRME 7 1/2 PERP (FRMEP) is expected to grow by 20.69% in the next year.