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MBIN

Merchants BancorpNasdaqCM:MBIN Stock Report

Market Cap

US$1.1b

7D

9.0%

1Y

97.6%

Updated

27 Sep, 2021

Data

Company Financials +
MBIN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends2/6

MBIN Overview

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

Merchants Bancorp Competitors

Federal National Mortgage Association

OTCPK:FNMA

US$5.1b

Federal Home Loan Mortgage

OTCPK:FMCC

US$2.7b

Price History & Performance

Summary of all time highs, changes and price drops for Merchants Bancorp
Historical stock prices
Current Share PriceUS$39.50
52 Week HighUS$19.52
52 Week LowUS$45.67
Beta1.08
1 Month Change8.43%
3 Month Change0.076%
1 Year Change97.60%
3 Year Change57.37%
5 Year Changen/a
Change since IPO135.12%

Recent News & Updates

Shareholder Returns

MBINUS MortgageUS Market
7D9.0%0.7%0.1%
1Y97.6%23.1%35.3%

Return vs Industry: MBIN exceeded the US Mortgage industry which returned 23.1% over the past year.

Return vs Market: MBIN exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is MBIN's price volatile compared to industry and market?
MBIN volatility
MBIN Beta1.08
Industry Beta1.12
Market Beta1

Stable Share Price: MBIN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MBIN's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1990404Mike Dunlaphttps://www.merchantsbankofindiana.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$1.14b
Earnings (TTM)US$211.54m
Revenue (TTM)US$420.66m

5.4x

P/E Ratio

1.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MBIN income statement (TTM)
RevenueUS$420.66m
Cost of RevenueUS$0
Gross ProfitUS$420.66m
ExpensesUS$209.12m
EarningsUS$211.54m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.35
Gross Margin100.00%
Net Profit Margin50.29%
Debt/Equity Ratio66.3%

How did MBIN perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

5%

Payout Ratio

Valuation

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

33.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MBIN ($37.1) is trading below our estimate of fair value ($58.5)

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


Price To Earnings Ratio

PE vs Industry: MBIN is good value based on its PE Ratio (5x) compared to the US Mortgage industry average (12.1x).

PE vs Market: MBIN is good value based on its PE Ratio (5x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: MBIN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MBIN is overvalued based on its PB Ratio (1.5x) compared to the US Mortgage industry average (1.1x).


Future Growth

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

-13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MBIN's earnings are forecast to decline over the next 3 years (-13.3% per year).

Earnings vs Market: MBIN's earnings are forecast to decline over the next 3 years (-13.3% per year).

High Growth Earnings: MBIN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MBIN's revenue is expected to decline over the next 3 years (-5.7% per year).

High Growth Revenue: MBIN's revenue is forecast to decline over the next 3 years (-5.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MBIN's Return on Equity is forecast to be low in 3 years time (15.9%).


Past Performance

How has Merchants Bancorp performed over the past 5 years?

40.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MBIN has high quality earnings.

Growing Profit Margin: MBIN's current net profit margins (50.3%) are higher than last year (44.1%).


Past Earnings Growth Analysis

Earnings Trend: MBIN's earnings have grown significantly by 40.6% per year over the past 5 years.

Accelerating Growth: MBIN's earnings growth over the past year (107%) exceeds its 5-year average (40.6% per year).

Earnings vs Industry: MBIN earnings growth over the past year (107%) exceeded the Mortgage industry 34%.


Return on Equity

High ROE: MBIN's Return on Equity (21.5%) is considered high.


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


Financial Institutions Analysis

Asset Level: MBIN's Assets to Equity ratio (9.3x) is low.

Allowance for Bad Loans: MBIN has a sufficient allowance for bad loans (957%).

Low Risk Liabilities: 91% 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 (55%).

Low Risk Deposits: MBIN's Loans to Deposits ratio (68%) is appropriate.

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


Dividend

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

0.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MBIN's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: MBIN's dividend (0.97%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4.6%), MBIN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MBIN's dividends in 3 years are forecast to be thoroughly covered by earnings (6.5% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Mike Dunlap (55 yo)

no data

Tenure

US$1,537,665

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 ($USD1.54M) is below average for companies of similar size in the US market ($USD2.30M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MBIN's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: MBIN's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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
  • Market Cap: US$1.137b
  • Shares outstanding: 28.78m
  • Website: https://www.merchantsbankofindiana.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 Analysis2021/09/27 23:04
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
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.