NasdaqCM:MBIN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Risks

  • Merchants Bancorp has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Merchants Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

NasdaqCM:MBIN

-1.2%

US Mortgage

-1.6%

US Market


1 Year Return

-42.8%

NasdaqCM:MBIN

-2.8%

US Mortgage

-3.0%

US Market

MBIN underperformed the Mortgage industry which returned -2.8% over the past year.

MBIN underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

MBINIndustryMarket
7 Day-1.3%-1.2%-1.6%
30 Day-10.8%-2.7%-5.7%
90 Day-29.8%-1.6%0.2%
1 Year-42.1%-42.8%-0.8%-2.8%-0.8%-3.0%
3 Yearn/a29.8%21.1%38.1%29.1%
5 Yearn/a55.3%39.0%50.8%34.1%

Price Volatility Vs. Market

How volatile is Merchants Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Merchants Bancorp undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Merchants Bancorp's share price is below the future cash flow value, and at a moderate discount (> 20%).

Merchants Bancorp's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Merchants Bancorp is good value based on earnings compared to the US Mortgage industry average.

Merchants Bancorp is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Merchants Bancorp is poor value based on expected growth next year.


Price Based on Value of Assets

Merchants Bancorp is good value based on assets compared to the US Mortgage industry average.


Next Steps

Future Growth

How is Merchants Bancorp expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Merchants Bancorp's revenue is expected to grow by 13% yearly, however this is not considered high growth (20% yearly).

Merchants Bancorp's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

Merchants Bancorp's revenue growth is expected to exceed the United States of America market average.

Merchants Bancorp's earnings growth is positive but not above the United States of America market average.

Merchants Bancorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Merchants Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Merchants Bancorp performed over the past 5 years?

22.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Merchants Bancorp has delivered over 20% year on year earnings growth in the past 5 years.

Merchants Bancorp's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Merchants Bancorp's 1-year earnings growth is negative, it can't be compared to the US Mortgage industry average.


Return on Equity

Merchants Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Merchants Bancorp used its assets more efficiently than the US Mortgage industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Merchants Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Merchants Bancorp'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

Information is not available.

Information is not available.


Financial Institutions Analysis

Merchants Bancorp has an acceptable proportion of non-loan assets held.

Merchants Bancorp has a sufficient allowance for bad loans.

Merchants Bancorp's liabilities are made up of primarily low risk sources of funding.

Merchants Bancorp's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Merchants Bancorp are broadly funded by customer deposits.

Merchants Bancorp has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

1.84%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Merchants Bancorp before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Merchants Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Merchants Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Whilst dividend payments have been stable, Merchants Bancorp has been paying a dividend for less than 10 years.

Dividend payments have increased, but Merchants Bancorp only paid a dividend in the past 2 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (7.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Merchants Bancorp's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Mike Petrie (65yo)

12.8yrs

Tenure

US$647,640

Compensation

Mr. Michael F. Petrie also known as Mike, has been Chairman and Chief Executive Officer of Merchants Bank of Indiana (also known as-Greensfork Township State Bank) since March 2002, Merchants Bancorp and P ...


CEO Compensation Analysis

Mike's remuneration is lower than average for companies of similar size in United States of America.

Mike's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.1yrs

Average Tenure

53yo

Average Age

The tenure for the Merchants Bancorp management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

65yo

Average Age

The tenure for the Merchants Bancorp board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mike Petrie (65yo)

    Chairman

    • Tenure: 12.8yrs
    • Compensation: US$647.64k
  • Kevin Langford (51yo)

    Senior VP & Chief Administrative Officer

    • Tenure: 0.0yrs
  • Mike Dunlap (53yo)

    • Tenure: 5.3yrs
    • Compensation: US$858.25k
  • John Macke (54yo)

    Executive VP & CFO

    • Tenure: 2.1yrs
  • Jerry Koors (55yo)

    President of Merchants Mortgage

    • Tenure: 5.8yrs
  • Rebecca Marsh

    VP of Marketing & Communications and Chief Information Security Officer

    • Tenure: 0.0yrs
  • Michael Dury (34yo)

    President of Merchants Capital Corp

    • Tenure: 1.6yrs
    • Compensation: US$3.46m
  • Tami Durle

    Manager SEC Reporting

    • Tenure: 0.0yrs
  • Terry Oznick (35yo)

    Senior VP & General Counsel

    • Tenure: 0.9yrs
  • Brian Emmons

    Senior VP of Commercial Banking & Participations

    • Tenure: 3.6yrs

Board Members

  • David Shane (71yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$43.52k
  • Andy Juster (66yo)

    Director

    • Tenure: 0.3yrs
  • Mike Petrie (65yo)

    Chairman

    • Tenure: 12.8yrs
    • Compensation: US$647.64k
  • Sue Gilroy (71yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$40.52k
  • Scott Evans (54yo)

    Director

    • Tenure: 13.6yrs
  • Mike Dunlap (53yo)

    • Tenure: 5.3yrs
    • Compensation: US$858.25k
  • Randy Rogers (73yo)

    Vice Chairman

    • Tenure: 1.6yrs
  • Patrick O'Brien (61yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$43.02k
  • Anne Sellers (58yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$40.52k

Company Information

Merchants Bancorp's company bio, 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
  • Market Cap: US$436.051m
  • Shares outstanding: 28.71m
  • Website: https://www.merchantsbankofindiana.com

Number of Employees


Location

  • Merchants Bancorp
  • 11555 North Meridian Street
  • Suite 400
  • Carmel
  • Indiana
  • 46032
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MBINNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 2017
MBIN.PNasdaqCM (Nasdaq Capital Market)7% NCUM PFD AUSUSDMar 2019
MBIN.ONasdaqCM (Nasdaq Capital Market)6% DEP PFD SER BUSUSDAug 2019

Biography

Merchants Bancorp operates as the diversified bank holding company in the United States. The company operates in three segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi- ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:50
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.