FRME Stock Analysis: First Merchants | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 2.738m USD | 12M Return: 10.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 16.7M
EPS Trend: -19.4%
Qual. Beats: 1
Rev. Trend: 72.0%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
First Merchants Corporation (NASDAQ: FRME) is a U.S. financial holding company headquartered in Muncie, Indiana, that operates primarily through its subsidiary, First Merchants Bank. Founded in 1893, the company provides commercial and consumer banking services-including deposit accounts, debit and credit cards, mortgage, agricultural, and treasury management lending-across Indiana, Ohio, and Michigan counties. It also offers wealth management, brokerage, investment advisory, private banking, and fiduciary estate services. Classified as a Mid Cap regional bank, First Merchants combines traditional community-based relationship banking with electronic and mobile delivery channels to serve retail customers and small-to-mid-sized businesses across the Midwest.
- Net interest margin compresses on Fed rate cuts
- Commercial loan growth slows across Indiana and Ohio markets
- Deposit costs rise as competition for funding intensifies
| Net Income: 198.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -0.13 > 1.0 |
| NWC/Revenue: -605.2% < 20% (prev -1.27k%; Δ 659.9% < -1%) |
| CFO/TA 0.01 > 3% & CFO 280.5m > Net Income 198.8m |
| Net Debt (174.5m) to EBITDA (253.6m): 0.69 < 3 |
| Current Ratio: 0.20 > 1.5 & < 3 |
| Outstanding Shares: last quarter (61.0m) vs 12m ago 4.75% < -2% |
| Gross Margin: 60.47% > 18% (prev 57.05%; Δ 3.41% > 0.5%) |
| Asset Turnover: 5.32% > 50% (prev 5.66%; Δ -0.34% > 0%) |
| Interest Coverage Ratio: 0.57 > 6 (EBIT TTM 223.0m / Interest Expense TTM 393.8m) |
| A: -0.30 (Total Current Assets 1.57b - Total Current Liabilities 7.93b) / Total Assets 21.1b |
| B: 0.07 (Retained Earnings 1.42b / Total Assets 21.1b) |
| C: 0.01 (EBIT TTM 223.0m / Avg Total Assets 19.8b) |
| D: 0.15 (Book Value of Equity 2.67b / Total Liabilities 18.4b) |
| Altman-Z'' = -1.53 = D |
| DSRI: 1.09 (Receivables 97.0m/88.4m, Revenue 1.05b/1.04b) |
| GMI: 0.94 (GM 57.05% / 60.47%) |
| AQI: 1.01 (AQ_t 0.92 / AQ_t-1 0.91) |
| SGI: 1.01 (Revenue 1.05b / 1.04b) |
| TATA: -0.00 (NI 198.8m - CFO 280.5m) / TA 21.1b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of July 08, 2026, the stock is trading at USD 42.84 with a total of 257,493 shares traded. Over the past week, the price has changed by -1.34%, over one month by +7.05%, over three months by +8.10% and over the past year by +10.38%.
Current recommended Stop Loss: 40.50 (which is 5.5% or 2.3 ATR below the current price).
First Merchants has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy FRME.
- StrongBuy: 2
- Buy: 2
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 48 | 12% |
P/E Trailing = 12.8142
P/E Forward = 11.9904
P/S = 4.2923
P/B = 1.0341
P/EG = 1.395
Revenue TTM = 1.05b USD
EBIT TTM = 223.0m USD
EBITDA TTM = 253.6m USD
Long Term Debt = 1.39b USD (from longTermDebt, last quarter)
Short Term Debt = 259.5m USD (from shortTermDebt, last quarter)
Debt = 1.64b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 174.5m USD (calculated: Debt 1.64b - CCE 1.47b)
Enterprise Value = 2.91b USD (2.74b + Debt 1.64b - CCE 1.47b)
Interest Coverage Ratio = 0.57 (Ebit TTM 223.0m / Interest Expense TTM 393.8m)
EV/FCF = 10.38x (Enterprise Value 2.91b / FCF TTM 280.5m)
FCF Yield = 9.63% (FCF TTM 280.5m / Enterprise Value 2.91b)
FCF Margin = 26.68% (FCF TTM 280.5m / Revenue TTM 1.05b)
Net Margin = 18.90% (Net Income TTM 198.8m / Revenue TTM 1.05b)
Gross Margin = 60.47% ((Revenue TTM 1.05b - Cost of Revenue TTM 415.7m) / Revenue TTM)
Gross Margin QoQ = 59.67% (prev 60.88%)
Tobins Q-Ratio = 0.14 (Enterprise Value 2.91b / Total Assets 21.1b)
Interest Expense / Debt = 23.94% (Interest Expense 393.8m / Debt 1.64b)
Taxrate = 10.84% (24.2m / 223.0m)
NOPAT = 198.8m (EBIT 223.0m * (1 - 10.84%))
Current Ratio = 0.20 (Total Current Assets 1.57b / Total Current Liabilities 7.93b)
Debt / Equity = 0.62 (Debt 1.64b / totalStockholderEquity, last quarter 2.67b)
Debt / EBITDA = 0.69 (Net Debt 174.5m / EBITDA 253.6m)
Debt / FCF = 0.62 (Net Debt 174.5m / FCF TTM 280.5m)
Total Stockholder Equity = 2.47b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.01% (Net Income 198.8m / Total Assets 21.1b)
RoE = 8.03% (Net Income TTM 198.8m / Total Stockholder Equity 2.47b)
RoCE = 5.78% (EBIT 223.0m / Capital Employed (Equity 2.47b + L.T.Debt 1.39b))
RoIC = 0.95% (NOPAT 198.8m / Invested Capital 21.0b)
WACC = 13.38% (E(2.74b)/V(4.38b) * Re(8.60%) + D(1.64b)/V(4.38b) * Rd(23.94%) * (1-Tc(0.11)))
Discount Rate = 8.60% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -60.0 | Cagr: 1.08%
[DCF] Terminal Value 60.68% ; FCFF base≈275.9m ; Y1≈286.9m ; Y5≈325.8m
[DCF] Fair Price = 40.05 (EV 2.70b - Net Debt 174.5m = Equity 2.52b / Shares 63.0m; r=13.38% [WACC]; 5y FCF grow 4.26% → 2.50% )
EPS Correlation: -19.40 | EPS CAGR: -1.84% | SUE: 0.96 | # QB: 1
Revenue Correlation: 72.01 | Revenue CAGR: 4.35% | SUE: 0.49 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.03 | Chg30d=+0.65% | Revisions=-38% | Analysts=6
EPS next Quarter (2026-09-30): EPS=1.08 | Chg30d=+0.78% | Revisions=-50% | Analysts=6
EPS current Year (2026-12-31): EPS=4.26 | Chg30d=+0.63% | Revisions=+50% | GrowthEPS=+9.6% | GrowthRev=+17.8%
EPS next Year (2027-12-31): EPS=4.61 | Chg30d=+1.14% | Revisions=-29% | GrowthEPS=+8.1% | GrowthRev=+5.4%
[Analyst] Revisions Ratio: -28% (up=5, down=10)