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MBIN

Merchants Bancorp NasdaqCM:MBIN Stock Report

Last Price

US$27.97

Market Cap

US$1.2b

7D

1.0%

1Y

16.7%

Updated

11 Aug, 2022

Data

Company Financials +
MBIN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends1/6

MBIN Stock Overview

Merchants Bancorp operates as the diversified bank holding company in the United States.

Rewards

Trading at 69.1% below our estimate of its fair value

Earnings are forecast to grow 5.16% per year

Risk Analysis

No risks detected for MBIN from our risk checks.

Merchants Bancorp Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Merchants Bancorp
Historical stock prices
Current Share PriceUS$27.97
52 Week HighUS$33.57
52 Week LowUS$21.52
Beta1.12
1 Month Change24.20%
3 Month Change20.15%
1 Year Change16.70%
3 Year Change163.70%
5 Year Changen/a
Change since IPO149.73%

Recent News & Updates

Shareholder Returns

MBINUS MortgageUS Market
7D1.0%2.3%1.3%
1Y16.7%-21.3%-11.7%

Return vs Industry: MBIN exceeded the US Mortgage industry which returned -22.2% over the past year.

Return vs Market: MBIN exceeded the US Market which returned -11.6% over the past year.

Price Volatility

Is MBIN's price volatile compared to industry and market?
MBIN volatility
MBIN Average Weekly Movement4.1%
Mortgage Industry Average Movement3.6%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: MBIN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
1990481Mike Dunlaphttps://www.merchantsbancorp.com

Merchants Bancorp operates as the diversified bank holding company in the United States. The company operates through Multi-family Mortgage Banking, Mortgage Warehousing, and Banking segments. The Multi-family Mortgage Banking segment originates and services government sponsored mortgages for multi-family and healthcare facilities.

Merchants Bancorp Fundamentals Summary

How do Merchants Bancorp's earnings and revenue compare to its market cap?
MBIN fundamental statistics
Market CapUS$1.21b
Earnings (TTM)US$194.87m
Revenue (TTM)US$421.36m

6.2x

P/E Ratio

1.4x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MBIN income statement (TTM)
RevenueUS$421.36m
Cost of RevenueUS$0
Gross ProfitUS$421.36m
Other ExpensesUS$226.50m
EarningsUS$194.87m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.52
Gross Margin100.00%
Net Profit Margin46.25%
Debt/Equity Ratio117.6%

How did MBIN perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

6%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MBIN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MBIN?

Other financial metrics that can be useful for relative valuation.

MBIN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does MBIN's PE Ratio compare to its peers?

MBIN PE Ratio vs Peers
The above table shows the PE ratio for MBIN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.2x
AGM Federal Agricultural Mortgage
9.1x-2.6%US$1.2b
FMCC Federal Home Loan Mortgage
9.4x82.2%US$2.0b
PFS Provident Financial Services
11.6x6.8%US$1.8b
NMIH NMI Holdings
7x12.7%US$1.8b
MBIN Merchants Bancorp
6.2x5.2%US$1.2b

Price-To-Earnings vs Peers: MBIN is good value based on its Price-To-Earnings Ratio (6.2x) compared to the peer average (9.2x).


Price to Earnings Ratio vs Industry

How does MBIN's PE Ratio compare vs other companies in the US Mortgage Industry?

Price-To-Earnings vs Industry: MBIN is good value based on its Price-To-Earnings Ratio (6.2x) compared to the US Mortgage industry average (11.6x)


Price to Earnings Ratio vs Fair Ratio

What is MBIN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MBIN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.2x
Fair PE Ratio12.3x

Price-To-Earnings vs Fair Ratio: MBIN is good value based on its Price-To-Earnings Ratio (6.2x) compared to the estimated Fair Price-To-Earnings Ratio (12.3x).


Share Price vs Fair Value

What is the Fair Price of MBIN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MBIN ($27.97) is trading below our estimate of fair value ($90.59)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


Discover undervalued companies

Future Growth

How is Merchants Bancorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MBIN's forecast earnings growth (5.2% per year) is above the savings rate (1.9%).

Earnings vs Market: MBIN's earnings (5.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: MBIN's revenue (6.2% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: MBIN's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MBIN's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Merchants Bancorp performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MBIN has high quality earnings.

Growing Profit Margin: MBIN's current net profit margins (46.2%) are lower than last year (50.3%).


Past Earnings Growth Analysis

Earnings Trend: MBIN's earnings have grown significantly by 36.1% per year over the past 5 years.

Accelerating Growth: MBIN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MBIN had negative earnings growth (-7.9%) over the past year, making it difficult to compare to the Mortgage industry average (3.1%).


Return on Equity

High ROE: MBIN's Return on Equity (17.7%) is considered low.


Discover strong past performing companies

Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: MBIN's Assets to Equity ratio (9x) is low.

Allowance for Bad Loans: MBIN has a sufficient allowance for bad loans (781%).

Low Risk Liabilities: 84% of MBIN's liabilities are made up of primarily low risk sources of funding.

Loan Level: MBIN has an appropriate level of Loans to Assets ratio (63%).

Low Risk Deposits: MBIN's Loans to Deposits ratio (85%) is appropriate.

Level of Bad Loans: MBIN has an appropriate level of bad loans (0.1%).


Discover healthy companies

Dividend

What is Merchants Bancorp current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MBIN's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: MBIN's dividend (1%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MBIN has been paying a dividend for less than 10 years.

Growing Dividend: MBIN's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (5.8%), MBIN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.


Discover strong dividend paying companies

Management

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

4.6yrs

Average management tenure


CEO

Mike Dunlap (56 yo)

4.58yrs

Tenure

US$1,487,502

Compensation

Mr. Michael J. Dunlap, also known as Mike, has been President of Merchants Bancorp since January 1, 2018 and serves as its Chief Operating Officer since January 1, 2018. Mr. Dunlap serves as Chief Executiv...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.49M) is below average for companies of similar size in the US market ($USD5.44M).

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


Leadership Team

Experienced Management: MBIN's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: MBIN's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MBIN insiders have bought more shares than they have sold 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

Merchants Bancorp's employee growth, exchange listings and data sources


Key Information

  • Name: Merchants Bancorp
  • Ticker: MBIN
  • Exchange: NasdaqCM
  • Founded: 1990
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Implied Market Cap: US$1.206b
  • Shares outstanding: 43.11m
  • Website: https://www.merchantsbancorp.com

Number of Employees


Location

  • Merchants Bancorp
  • 410 Monon Boulevard
  • Carmel
  • Indiana
  • 46032
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.