NasdaqGM:MFSF

Stock Analysis Report

Executive Summary

MutualFirst Financial, Inc. operates as the bank holding company for MutualBank that provides various financial services in the United States.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has MutualFirst Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MFSF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.8%

MFSF

-7.0%

US Banks

-2.6%

US Market


1 Year Return

-8.6%

MFSF

-32.9%

US Banks

-13.3%

US Market

Return vs Industry: MFSF exceeded the US Banks industry which returned -34.8% over the past year.

Return vs Market: MFSF exceeded the US Market which returned -15.9% over the past year.


Shareholder returns

MFSFIndustryMarket
7 Day-1.8%-7.0%-2.6%
30 Day-20.4%-24.6%-15.2%
90 Day-31.2%-41.9%-22.2%
1 Year-6.2%-8.6%-30.8%-32.9%-11.5%-13.3%
3 Year-9.3%-15.1%-21.4%-27.3%13.2%5.7%
5 Year33.8%19.9%2.7%-9.2%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MutualFirst Financial undervalued compared to its fair value and its price relative to the market?

9.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MFSF ($27) is trading above our estimate of fair value ($24.52)

Significantly Below Fair Value: MFSF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MFSF is poor value based on its PE Ratio (9.7x) compared to the Banks industry average (8.5x).

PE vs Market: MFSF is good value based on its PE Ratio (9.7x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MFSF is overvalued based on its PB Ratio (1x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is MutualFirst Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFSF's earnings are forecast to decline over the next 3 years (-2.2% per year).

Earnings vs Market: MFSF's earnings are forecast to decline over the next 3 years (-2.2% per year).

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

Revenue vs Market: MFSF's revenue (3.7% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: MFSF's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MFSF's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has MutualFirst Financial performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFSF has high quality earnings.

Growing Profit Margin: MFSF's current net profit margins (27.4%) are higher than last year (23.5%).


Past Earnings Growth Analysis

Earnings Trend: MFSF's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: MFSF's earnings growth over the past year (25.9%) exceeds its 5-year average (14.1% per year).

Earnings vs Industry: MFSF earnings growth over the past year (25.9%) exceeded the Banks industry 10.9%.


Return on Equity

High ROE: MFSF's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is MutualFirst Financial'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: MFSF's level of assets compared to its equity is low.

Allowance for Bad Loans: MFSF has a sufficient allowance for bad loans.

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

Loan Level: MFSF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MFSF's loans are broadly funded by customer deposits.

Level of Bad Loans: MFSF has an appropriate level of bad loans (0.48%)


Next Steps

Dividend

What is MutualFirst Financial's current dividend yield, its reliability and sustainability?

2.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MFSF's dividend (2.96%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: MFSF's dividend (2.96%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

Stable Dividend: MFSF's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.9%), MFSF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MFSF's dividends in 3 years are forecast to be well covered by earnings (37% payout ratio).


Next Steps

Management

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

11.2yrs

Average management tenure


CEO

Dave Heeter (57yo)

16.5s

Tenure

US$715,557

Compensation

Mr. David W. Heeter, also known as Dave, serves as Chief Executive Officer and Director of Mutual Bank and has been its President since October 18, 2019. He has been the President and Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD715.56K) is below average for companies of similar size in the US market ($USD1.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Heeter
President16.5yrsUS$715.56k0.74% $1.8m
Christopher Cook
Senior VP9.92yrsUS$383.53k0.50% $1.2m
Charles Viater
Senior VP & Director11.75yrsUS$468.43k2.83% $6.7m
Sharon Ferguson
Senior Vice President of MutualBank11.17yrsUS$206.69k0.11% $253.2k
Dorothy Douglass
Vice President of Human Resourcesno datano datano data
Dianne Harris
Vice President and Audit Manager10.25yrsno datano data

11.2yrs

Average Tenure

60yo

Average Age

Experienced Management: MFSF's management team is seasoned and experienced (11.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Heeter
President16.5yrsUS$715.56k0.74% $1.8m
Charles Viater
Senior VP & Director11.75yrsUS$468.43k2.83% $6.7m
Wilbur Davis
Chairman of the Board21.25yrsUS$121.13k0.54% $1.3m
Richard Lashley
Independent Director2.92yrsUS$41.40k0.023% $55.0k
Michael Marien
Independent Director11.75yrsUS$37.60k0.57% $1.3m
Linn Crull
Independent Director21.25yrsUS$87.45k0.68% $1.6m
William Hughes
Director21.25yrsUS$39.80k0.34% $812.3k
Mark Barkley
Director2.17yrsUS$36.60k3.64% $8.6m
Edward Levy
Independent Director11.75yrsUS$38.40k0.37% $877.8k
Brian Hewitt
Independent Director2.17yrsUS$36.80k0.018% $42.9k

11.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MFSF's board of directors are seasoned and experienced ( 11.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

MutualFirst Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MutualFirst Financial, Inc.
  • Ticker: MFSF
  • Exchange: NasdaqGM
  • Founded: 1889
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$236.633m
  • Shares outstanding: 8.61m
  • Website: https://www.bankwithmutual.com

Number of Employees


Location

  • MutualFirst Financial, Inc.
  • 110 East Charles Street
  • Muncie
  • Indiana
  • 47305
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFSFNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDDec 1999

Biography

MutualFirst Financial, Inc. operates as the bank holding company for MutualBank that provides various financial services in the United States. It accepts savings deposit, NOW, and demand accounts, as well as certificates of deposit. The company offers one-to-four family residential property, commercial real estate, construction and development, and commercial business loans; consumer loans, such as auto loans, boat and recreational vehicle loans, loans secured by savings deposits, and credit card and unsecured consumer loans; and adjustable rate loans. In addition, it operates as an insurance agent; and sells life and other insurance products. Further, the company provides trust, investment, broker advisory, retirement plan, and private banking products and services. It has 39 full service retail financial centers in Allen, Delaware, Elkhart, Grant, Greene, Hamilton, Jackson, Johnson, Knox, Kosciusko, Lawrence, Monroe, Randolph, St. Joseph, and Wabash counties in Indiana; wealth management offices in Fishers and Crawfordsville, Indiana; and 1 loan origination office in New Buffalo, Michigan. MutualFirst Financial, Inc. was founded in 1889 and is headquartered in Muncie, Indiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 01:41
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.