OTCPK:MFGI

Stock Analysis Report

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Merchants Financial Group

Executive Summary

Merchants Financial Group, Inc. operates as the bank holding company for Merchants Bank, National Association and First National Bank of Northfield that provides various banking products and services to individuals, businesses, and companies in the United States. More Details


Snowflake Analysis

Not a dividend payer with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MFGI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

MFGI

-0.8%

US Banks

1.0%

US Market


1 Year Return

-27.7%

MFGI

-26.3%

US Banks

13.6%

US Market

Return vs Industry: MFGI underperformed the US Banks industry which returned -26.3% over the past year.

Return vs Market: MFGI underperformed the US Market which returned 13.6% over the past year.


Shareholder returns

MFGIIndustryMarket
7 Day0%-0.8%1.0%
30 Day0%-0.8%-0.4%
90 Day-2.3%-3.1%8.9%
1 Year-25.9%-27.7%-23.7%-26.3%16.2%13.6%
3 Year-5.7%-12.5%-15.1%-22.1%40.2%30.8%
5 Year43.8%27.6%21.7%6.6%89.6%68.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


Share Price vs. Fair Value

Below Fair Value: MFGI ($54.25) is trading above our estimate of fair value ($31.78)

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


Price To Earnings Ratio

PE vs Industry: Insufficient data to calculate MFGI's PE Ratio to determine if it is good value compared to the US Banks industry average.

PE vs Market: Insufficient data to calculate MFGI's PE Ratio to determine if it is good value compared to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MFGI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: Insufficient data to calculate MFGI's PB Ratio to determine if it is good value.


Next Steps

Future Growth

How is Merchants Financial Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Merchants Financial Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of MFGI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Merchants Financial Group's filings and announcementshere.
  • Explore growth companies in the Banks industry.

Past Performance

How has Merchants Financial Group performed over the past 5 years?

14.8%

Historical Banks annual earnings growth


In this section we usually display a company’s past earnings and revenues to help investors visualise the trend through time. We also gauge the company’s performance by benchmarking its returns and growth to its industry peers and the wider market. However, Merchants Financial Group has not provided sufficient past data to assess its track record.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have historical data.


Next Steps

Financial Health

How is Merchants Financial Group'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: Insufficient data to determine if MFGI's has appropriate level of Assets to Equity ratio.

Allowance for Bad Loans: Insufficient data to determine if MFGI has a sufficient allowance for bad loans.

Low Risk Liabilities: MFGI reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if MFGI has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: MFGI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if MFGI has an appropriate level of bad loans.


Next Steps

Dividend

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

4.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MFGI's dividend (4.26%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: MFGI's dividend (4.26%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

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

Growing Dividend: MFGI's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

8.4yrs

Average board tenure


CEO

Greg Evans (57 yo)

3.58yrs

Tenure

Mr. Gregory M. Evans, also known as Greg, has been the Chief Executive Officer and President at Merchants Financial Group, Inc. and Merchants Bank since February 2017. Mr. Evans served as CEO at First Nati ...


Board Members

NamePositionTenureCompensationOwnership
Gregory Evans
President3.58yrsno datano data
Richard Lommen
Independent Director12.67yrsno datano data
Scott Biesanz
Independent Chairman of the Board8.42yrsno datano data
Michael Cichanowski
Independent Director17.67yrsno datano data
James Trenda
Independent Director13.67yrsno datano data
Bruce Ryan
Independent Director14.67yrsno datano data
Bradley Peterson
Director0.42yrno datano data
Ann Merchlewitz
Independent Director2.42yrsno datano data
John Killen
Independent Director1.42yrsno datano data

8.4yrs

Average Tenure

60yo

Average Age

Experienced Board: MFGI's board of directors are considered experienced (8.4 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 Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Merchants Financial Group, Inc.
  • Ticker: MFGI
  • Exchange: OTCPK
  • Founded: 1875
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$144.709m
  • Shares outstanding: 2.67m
  • Website: https://www.merchantsbank.com

Number of Employees


Location

  • Merchants Financial Group, Inc.
  • 102 East Third Street
  • Winona
  • Minnesota
  • 55987
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFGIOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 1990

Biography

Merchants Financial Group, Inc. operates as the bank holding company for Merchants Bank, National Association and First National Bank of Northfield that provides various banking products and services to in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 06:02
End of Day Share Price2020/09/17 00:00
Earnings2018/12/31
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.