FRME Stock Overview
First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides community banking services.
First Merchants Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$43.92|
|52 Week High||US$50.65|
|52 Week Low||US$36.59|
|1 Month Change||7.20%|
|3 Month Change||1.97%|
|1 Year Change||8.98%|
|3 Year Change||16.01%|
|5 Year Change||13.46%|
|Change since IPO||614.98%|
Recent News & Updates
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...
|FRME||US Banks||US Market|
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.
|FRME Average Weekly Movement||4.2%|
|Banks Industry Average Movement||3.9%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.4%|
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
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
|FRME fundamental statistics|
Is FRME overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|FRME income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 27, 2022
|Earnings per share (EPS)||3.76|
|Net Profit Margin||39.16%|
How did FRME perform over the long term?See historical performance and comparison
2.6%Current Dividend Yield
Is First Merchants undervalued compared to its fair value and its price relative to the market?
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.
How is First Merchants forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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%).
How has First Merchants performed over the past 5 years?
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.
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
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%).
What is First Merchants's current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Hardwick (50 yo)
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.
Experienced Management: FRME's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Experienced Board: FRME's board of directors are seasoned and experienced ( 10.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
First Merchants Corporation's employee growth, exchange listings and data sources
- 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
- First Merchants Corporation
- 200 East Jackson Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/21 23:36|
|End of Day Share Price||2022/01/21 00:00|
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.