(FRME) First Merchants - Overview
Sector: Financial Services | Industry: Banks - Regional | Exchange: NASDAQ (USA) | Market Cap: 2.464m USD | Total Return: 10.7% in 12m
Avg Turnover: 12.7M
EPS Trend: -19.2%
Qual. Beats: 1
Rev. Trend: 72.0%
Qual. Beats: 0
Warnings
Choppy
Tailwinds
No distinct edge detected
First Merchants Corporation (NASDAQ: FRME) is a financial holding company headquartered in Muncie, Indiana, operating primarily through its subsidiary, First Merchants Bank. Founded in 1893, the institution provides a full suite of commercial and consumer banking services, including deposit products, mortgage lending, and treasury management across Indiana, Ohio, and Michigan. The company also maintains a wealth management division offering fiduciary, estate, and investment planning services.
As a regional bank, First Merchants relies heavily on the net interest margin, which is the spread between the interest income earned on loans and the interest paid to depositors. This business model is sensitive to Federal Reserve interest rate cycles and the economic stability of the Midwestern manufacturing and agricultural corridors it serves.
Investors can further examine these regional banking fundamentals by reviewing the deeper analytical tools available on ValueRay.
- Net interest margin sensitivity to Federal Reserve monetary policy shifts
- Commercial and industrial loan growth across Midwest manufacturing corridors
- Wealth management fee income expansion through regional advisory acquisitions
- Asset quality stability amidst shifting commercial real estate valuations
- Efficiency ratio improvements driven by digital banking channel transitions
| 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 0.57%; Δ 5.99k% > 0.5%) |
| Asset Turnover: 5.32% > 50% (prev 5.66%; Δ -0.34% > 0%) |
| Interest Coverage Ratio: 0.57 > 6 (EBITDA TTM 253.6m / 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: 0.07 (Book Value of Equity 1.28b / Total Liabilities 18.4b) |
| Altman-Z'' = -1.61 = D |
| DSRI: 1.09 (Receivables 97.0m/88.4m, Revenue 1.05b/1.04b) |
| GMI: 0.94 (GM 60.47% / 57.05%) |
| 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 May 24, 2026, the stock is trading at USD 40.23 with a total of 244,349 shares traded.
Over the past week, the price has changed by +2.66%,
over one month by -0.57%,
over three months by -0.57% and
over the past year by +10.72%.
First Merchants has received a consensus analysts rating of 4.17. Therefore, it is recommended to buy FRME.
- StrongBuy: 2
- Buy: 3
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 47.6 | 18.3% |
P/E Forward = 11.0742
P/S = 3.8635
P/B = 0.9617
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 = 2.64b USD (2.46b + Debt 1.64b - CCE 1.47b)
Interest Coverage Ratio = 0.57 (Ebit TTM 223.0m / Interest Expense TTM 393.8m)
EV/FCF = 9.41x (Enterprise Value 2.64b / FCF TTM 280.5m)
FCF Yield = 10.63% (FCF TTM 280.5m / Enterprise Value 2.64b)
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 = 0.13 (Enterprise Value 2.64b / Total Assets 21.1b)
Interest Expense / Debt = 23.94% (Interest Expense 393.8m / Debt 1.64b)
Taxrate = 12.78% (33.1m / 259.1m)
NOPAT = 194.5m (EBIT 223.0m * (1 - 12.78%))
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 = 0.93% (NOPAT 194.5m / Invested Capital 21.0b)
WACC = 13.80% (E(2.46b)/V(4.11b) * Re(9.07%) + D(1.64b)/V(4.11b) * Rd(23.94%) * (1-Tc(0.13)))
Discount Rate = 9.07% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -60.0 | Cagr: 1.08%
[DCF] Terminal Value 59.60% ; FCFF base≈275.9m ; Y1≈286.9m ; Y5≈325.8m
[DCF] Fair Price = 38.47 (EV 2.60b - Net Debt 174.5m = Equity 2.42b / Shares 63.0m; r=13.80% [WACC]; 5y FCF grow 4.26% → 2.50% )
EPS Correlation: -19.17 | EPS CAGR: -1.79% | SUE: 2.61 | # QB: 1
Revenue Correlation: 72.01 | Revenue CAGR: 4.35% | SUE: 0.49 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.02 | Chg30d=-0.97% | Revisions=-33% | Analysts=6
EPS next Quarter (2026-09-30): EPS=1.07 | Chg30d=-1.08% | Revisions=-43% | Analysts=6
EPS current Year (2026-12-31): EPS=4.24 | Chg30d=+1.16% | Revisions=+43% | GrowthEPS=+8.9% | GrowthRev=+17.7%
EPS next Year (2027-12-31): EPS=4.55 | Chg30d=+0.44% | Revisions=-25% | GrowthEPS=+7.5% | GrowthRev=+5.4%
[Analyst] Revisions Ratio: -43%