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FRME

First MerchantsNasdaqGS:FRME Stock Report

Last Price

US$43.92

Market Cap

US$2.4b

7D

-4.1%

1Y

9.0%

Updated

21 Jan, 2022

Data

Company Financials +
FRME fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends5/6

FRME Stock Overview

First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides community banking services.

First Merchants Competitors

Signature Bank

NasdaqGS:SBNY

US$20.2b

Western Alliance Bancorporation

NYSE:WAL

US$11.4b

First Horizon

NYSE:FHN

US$9.2b

Cullen/Frost Bankers

NYSE:CFR

US$8.4b

Price History & Performance

Summary of all time highs, changes and price drops for First Merchants
Historical stock prices
Current Share PriceUS$43.92
52 Week HighUS$50.65
52 Week LowUS$36.59
Beta1.22
1 Month Change7.20%
3 Month Change1.97%
1 Year Change8.98%
3 Year Change16.01%
5 Year Change13.46%
Change since IPO614.98%

Recent News & Updates

Nov 19
Should You Be Adding First Merchants (NASDAQ:FRME) To Your Watchlist Today?

Should You Be Adding First Merchants (NASDAQ:FRME) To Your Watchlist Today?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

FRMEUS BanksUS Market
7D-4.1%-8.1%-6.1%
1Y9.0%24.9%4.2%

Return vs Industry: FRME underperformed the US Banks industry which returned 28% over the past year.

Return vs Market: FRME exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is FRME's price volatile compared to industry and market?
FRME volatility
FRME Average Weekly Movement4.2%
Banks Industry Average Movement3.9%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: FRME is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FRME's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18931,907Mark Hardwickhttps://www.firstmerchants.com

First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides community banking services. It accepts time, savings, and demand deposits; and provides consumer, commercial, agri-business, and real estate mortgage loans. The company also offers personal and corporate trust; brokerage and private wealth management; and letters of credit, repurchase agreements, and other corporate services.

First Merchants Fundamentals Summary

How do First Merchants's earnings and revenue compare to its market cap?
FRME fundamental statistics
Market CapUS$2.37b
Earnings (TTM)US$202.93m
Revenue (TTM)US$518.20m

11.7x

P/E Ratio

1.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FRME income statement (TTM)
RevenueUS$518.20m
Cost of RevenueUS$0
Gross ProfitUS$518.20m
ExpensesUS$315.26m
EarningsUS$202.93m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)3.76
Gross Margin100.00%
Net Profit Margin39.16%
Debt/Equity Ratio36.7%

How did FRME perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

29%

Payout Ratio

Valuation

Is First Merchants undervalued compared to its fair value and its price relative to the market?

43.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRME ($43.92) is trading below our estimate of fair value ($77.94)

Significantly Below Fair Value: FRME is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FRME is poor value based on its PE Ratio (11.7x) compared to the US Banks industry average (11x).

PE vs Market: FRME is good value based on its PE Ratio (11.7x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: FRME is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: FRME's PB Ratio (1.3x) is in line with the US Banks industry average.


Future Growth

How is First Merchants forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRME's forecast earnings growth (7.2% per year) is above the savings rate (2%).

Earnings vs Market: FRME's earnings (7.2% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: FRME's earnings are forecast to grow, but not significantly.

Revenue vs Market: FRME's revenue (9.4% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: FRME's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FRME's Return on Equity is forecast to be low in 3 years time (10.2%).


Past Performance

How has First Merchants performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRME has high quality earnings.

Growing Profit Margin: FRME's current net profit margins (39.2%) are higher than last year (35.2%).


Past Earnings Growth Analysis

Earnings Trend: FRME's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: FRME's earnings growth over the past year (34.1%) exceeds its 5-year average (16.2% per year).

Earnings vs Industry: FRME earnings growth over the past year (34.1%) underperformed the Banks industry 43.4%.


Return on Equity

High ROE: FRME's Return on Equity (10.9%) is considered low.


Financial Health

How is First Merchants's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FRME's Assets to Equity ratio (8.1x) is low.

Allowance for Bad Loans: FRME has a sufficient allowance for bad loans (385%).

Low Risk Liabilities: 94% of FRME's liabilities are made up of primarily low risk sources of funding.

Loan Level: FRME has an appropriate level of Loans to Assets ratio (59%).

Low Risk Deposits: FRME's Loans to Deposits ratio (72%) is appropriate.

Level of Bad Loans: FRME has an appropriate level of bad loans (0.6%).


Dividend

What is First Merchants's current dividend yield, its reliability and sustainability?

2.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FRME's dividend (2.64%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: FRME's dividend (2.64%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: FRME's dividends per share have been stable in the past 10 years.

Growing Dividend: FRME's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.2%), FRME's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FRME's dividends in 3 years are forecast to be well covered by earnings (30.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Mark Hardwick (50 yo)

1

Tenure

US$827,586

Compensation

Mr. Mark K. Hardwick, C.P.A., serves as Chief Executive Officer at First Merchants Corporation since January 01, 2021 and has been its Director since February 09, 2021. He served as an Executive Vice Presi...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD827.59K) is below average for companies of similar size in the US market ($USD3.73M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FRME's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: FRME's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FRME insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

First Merchants Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: First Merchants Corporation
  • Ticker: FRME
  • Exchange: NasdaqGS
  • Founded: 1893
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$2.368b
  • Shares outstanding: 53.92m
  • Website: https://www.firstmerchants.com

Number of Employees


Location

  • First Merchants Corporation
  • 200 East Jackson Street
  • Muncie
  • Indiana
  • 47305-2814
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:36
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.