Merchants Financial Group, Inc. operates as the bank holding company for Merchants Bank, National Association that provides various banking products and services to individual and business customers in the United States.
The last earnings update was 107 days ago.
Discounted Cash Flow Calculation for OTCPK:MFGI using Excess Returns Model Model
The calculations below outline how an intrinsic value for Merchants Financial Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Amount off the current price
Merchants Financial Group
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Merchants Financial Group
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Merchants Financial Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Merchants Financial Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Merchants Financial Group's
is considered below, and whether this is a fair price.
Price based on past earnings
Merchants Financial Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Merchants Financial Group's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Merchants Financial Group is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Merchants Financial Group's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Merchants Financial Group
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Fundamentally a bank's business is based upon borrowing and lending money, for
this reason they typically have high levels of debt and we analyse them
This treemap shows a more detailed breakdown of
Merchants Financial Group's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
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 Chief Banking Officer of Merchants Bank. He served as the President and Chief Banking Officer of Winona at Merchants Financial Group, Inc. since December 2013. Mr. Evans served as Chief Banking Officer at Merchants Financial Group, Inc. He served as Northern Regional President of Merchants Bank NA. He served as the Regional President of Merchants Bank of Cannon Falls & Red Wing at Merchants Financial Group Inc. He has been Director of Merchants Financial Group, Inc. since April 2017 and Merchants Bank, National Association since 2017. He is a graduate of Winona Senior High School and Valparaiso (Ind.) University. He joined Merchants in 1989 as the first Marketing Department was being created and served as Director of Marketing until 2007.
Insufficient data for Greg to compare compensation growth.
Insufficient data for Greg to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Senior VP & CFO
Chief Information Officer and Senior VP
Vice President & Director of Marketing
Chief Human Resource Officer
Chief Credit Officer & Senior VP
Senior Vice President & Credit Administration Manager
Regional President of Southeast Region-Merchants Bank NA
Vice President & Controller
Senior Vice President of Retail Performance at Merchants Bank
Board of Directors Tenure
Average tenure and age of the
Merchants Financial Group
board of directors in years:
The average tenure for the Merchants Financial Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Merchants Financial Group, Inc. operates as the bank holding company for Merchants Bank, National Association that provides various banking products and services to individual and business customers in the United States. The company offers checking accounts, savings accounts, health savings accounts, checking accounts for military, certificates of deposit accounts, and individual retirement accounts, as well as credit cards. It also provides personal loans for cars, boats, trailers, motorcycles, tractors, or RVs; furniture or appliances; debt consolidation; and others, as well as home equity loans, mortgage loans, and overdraft protection loans. In addition, the company offers commercial and small business loans; term loans; commercial real estate loans; floor plan financing; lines of credit; fleet/truck loans; and lease finance, as well as finance for farming operations, including working capital and input costs, equipment, capital improvements, and others. Further, it provides investment and trust, treasury management, mobile and online banking, and wire transfer services. The company operates branches in Winona, Goodview, Rushford, Lanesboro, St. Charles, Rochester, La Crescent, Caledonia, Spring Grove, Cannon Falls, Red Wing, Hampton, Hastings, Apple Valley, Lakeville, Cottage Grove, and Rosemount, Minnesota; and Onalaska and Eau Claire, Wisconsin. Merchants Financial Group, Inc. was founded in 1875 and is based in Winona, Minnesota.
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