FRMEP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 383 industry peers in the Banks industry. There are concerns on the financial health of FRMEP while its profitability can be described as average. FRMEP is valued quite cheap, while showing a decent growth score. This is a good combination! FRMEP also has an excellent dividend rating.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year FRMEP was profitable.
FRMEP had a positive operating cash flow in the past year.
Each year in the past 5 years FRMEP has been profitable.
Of the past 5 years FRMEP 4 years had a positive operating cash flow.

1.2 Ratios

FRMEP has a Return On Assets of 1.23%. This is in the better half of the industry: FRMEP outperforms 78.33% of its industry peers.
FRMEP's Return On Equity of 9.59% is in line compared to the rest of the industry. FRMEP outperforms 58.75% of its industry peers.

		Industry Rank	Sector Rank
ROA	1.23%
ROE	9.59%
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

1.3 Margins

With an excellent Profit Margin value of 34.65%, FRMEP belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
FRMEP's Profit Margin has improved 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-1.28%

PM growth 5Y2.28%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for FRMEP has been increased compared to 5 years ago.
Compared to 1 year ago, FRMEP has an improved 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 of 1.40. This is comparable to the rest of the industry: FRMEP outperforms 58.22% of its industry peers.
FRMEP has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
FRMEP has a Debt to Equity ratio of 0.16. This is comparable to the rest of the industry: FRMEP outperforms 52.48% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.16
Debt/FCF	1.4
Altman-Z	N/A

ROIC/WACCN/A

WACC20.04%

2.3 Liquidity

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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

FRMEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.75%, which is quite good.
The Earnings Per Share has been growing slightly by 7.21% on average over the past years.
The Revenue has been growing slightly by 2.51% in the past year.
The Revenue has been growing slightly by 6.15% on average over the past years.

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

FRMEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.29% yearly.
The Revenue is expected to grow by 11.45% on average over the next years. This is quite good.

EPS Next Y7.35%

EPS Next 2Y9.29%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year14.02%

Revenue Next 2Y11.45%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

FRMEP is valuated cheaply with a Price/Earnings ratio of 6.62.
Based on the Price/Earnings ratio, FRMEP is valued cheaper than 95.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of FRMEP to the average of the S&P500 Index (28.30), we can say FRMEP is valued rather cheaply.
The Price/Forward Earnings ratio is 6.17, which indicates a rather cheap valuation of FRMEP.
FRMEP's Price/Forward Earnings ratio is rather cheap when compared to the industry. FRMEP is cheaper than 95.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FRMEP to the average of the S&P500 Index (25.57), we can say FRMEP is valued rather cheaply.

		Industry Rank	Sector Rank
PE	6.62
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

FRMEP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

PEG (NY)0.9

PEG (5Y)0.92

EPS Next 2Y9.29%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

FRMEP has a Yearly Dividend Yield of 3.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.70, FRMEP pays a bit more dividend than its industry peers.
FRMEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	3.7%

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

DP36.49%

EPS Next 2Y9.29%

EPS Next 3YN/A

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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 5 / 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 7 / 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 3 / 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 7.35% in the next year.