First Merchants Corp. (Indiana) (FRME) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

UMB Financial Corp.

Associated Banc-Corp

Axos Financial, Inc.

Texas Capital Bancshares, Inc.

Fulton Financial Corp.

First Financial Bankshares, Inc.

F.N.B. Corp. (Pennsylvania)

WaFd, Inc.

First Merchants Corp. (Indiana)

Community Bank System, Inc.

Simmons First National Corp.

Why is First Merchants Corp. (Indiana) ?

High Profitability with a Net Interest Margin of 6.13%

Positive results in Dec 25

DIVIDEND PER SHARE(HY) Highest at USD 0
CREDIT DEPOSIT RATIO(Q) Highest at 0.52%
NII(Q) Highest at USD 139.06 MM

With ROA of 0.84%, it has a fair valuation with a 0.94 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.97%, its profits have risen by 12.2% ; the PEG ratio of the company is 0.7

High Institutional Holdings at 82.91%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.57% over the previous quarter.

Below par performance in long term as well as near term

Along with generating -9.97% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to First Merchants Corp. (Indiana) should be less than 10%
Overall Portfolio exposure to Major Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Major Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is First Merchants Corp. (Indiana) for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

First Merchants Corp. (Indiana)

-9.97%

0.63

27.92%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.57%

EBIT Growth (5y)

6.00%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

36.86%

Pledged Shares

Institutional Holding

82.91%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.94

EV to EBIT

12.75

EV to EBITDA

11.51

EV to Capital Employed

0.96

EV to Sales

3.23

PEG Ratio

0.74

Dividend Yield

3.84%

ROCE (Latest)

7.50%

ROE (Latest)

9.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 0

CREDIT DEPOSIT RATIO(Q)

Highest at 0.52%

NII(Q)

Highest at USD 139.06 MM

NET SALES(Q)

Highest at USD 237.44 MM

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 202.94 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 27.58 %

CASH AND EQV(HY)

Lowest at USD 172.24 MM

Here's what is working for First Merchants Corp. (Indiana)

Credit Deposit Ratio

Highest at 0.52% and Grown

In each half year in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

NII

Highest at USD 139.06 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 237.44 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Here's what is not working for First Merchants Corp. (Indiana)

Operating Profit Margin

Lowest at 27.58 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Cash Flow

Lowest at USD 202.94 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 172.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents