FRME Stock Analysis: First Merchants | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 2.640m USD | 12M Return: 10.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 21.6M
EPS Trend: 8.5%
Qual. Beats: -1
Rev. Trend: -16.9%
Qual. Beats: -1
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
First Merchants Corporation (NASDAQ: FRME) is a U.S. financial holding company headquartered in Muncie, Indiana, that operates primarily through its subsidiary, First Merchants Bank. Founded in 1893, the company provides commercial and consumer banking services-including deposit accounts, debit and credit cards, mortgage, agricultural, and treasury management lending-across Indiana, Ohio, and Michigan counties. It also offers wealth management, brokerage, investment advisory, private banking, and fiduciary estate services. Classified as a Mid Cap regional bank, First Merchants combines traditional community-based relationship banking with electronic and mobile delivery channels to serve retail customers and small-to-mid-sized businesses across the Midwest.
- Net interest margin compresses on Fed rate cuts
- Commercial loan growth slows across Indiana and Ohio markets
- Deposit costs rise as competition for funding intensifies
| Net Income: 186.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -0.13 > 1.0 |
| NWC/Revenue: -1.52k% < 20% (prev -1.37k%; Δ -153.2% < -1%) |
| CFO/TA 0.01 > 3% & CFO 280.5m > Net Income 186.0m |
| Net Debt (-2.30b) to EBITDA (235.0m): -9.80 < 3 |
| Current Ratio: 0.24 > 1.5 & < 3 |
| Outstanding Shares: last quarter (62.6m) vs 12m ago 8.31% < -2% |
| Gross Margin: 51.23% > 18% (prev 59.67%; Δ -8.44% > 0.5%) |
| Asset Turnover: 4.21% > 50% (prev 5.58%; Δ -1.37% > 0%) |
| Interest Coverage Ratio: 0.52 > 6 (EBIT TTM 205.6m / Interest Expense TTM 399.0m) |
| A: -0.60 (Total Current Assets 4.09b - Total Current Liabilities 16.9b) / Total Assets 21.3b |
| B: 0.07 (Retained Earnings 1.44b / Total Assets 21.3b) |
| C: 0.01 (EBIT TTM 205.6m / Avg Total Assets 20.0b) |
| D: 0.14 (Book Value of Equity 2.70b / Total Liabilities 18.7b) |
| Altman-Z'' = -3.49 = D |
| DSRI: 1.35 (Receivables 101.9m/93.3m, Revenue 840.8m/1.04b) |
| GMI: 1.16 (GM 59.67% / 51.23%) |
| AQI: 0.84 (AQ_t 0.80 / AQ_t-1 0.95) |
| SGI: 0.81 (Revenue 840.8m / 1.04b) |
| TATA: -0.00 (NI 186.0m - CFO 280.5m) / TA 21.3b) |
| Beneish M = -2.82 (Cap -4..+1) = A |
As of July 28, 2026, the stock is trading at USD 42.67 with a total of 599,759 shares traded. Over the past week, the price has changed by -3.72%, over one month by -1.73%, over three months by +6.84% and over the past year by +10.55%.
Current recommended Stop Loss: 40.50 (which is 5.1% or 1.8 ATR below the current price).
First Merchants has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy FRME.
- StrongBuy: 2
- Buy: 2
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 48 | 12.5% |
P/E Trailing = 12.8892
P/E Forward = 11.9904
P/S = 4.1392
P/B = 1.0415
P/EG = 1.395
Revenue TTM = 840.8m USD
EBIT TTM = 205.6m USD
EBITDA TTM = 235.0m USD
Long Term Debt = 856.2m USD (from longTermDebt, last fiscal year)
Short Term Debt = 103.3m USD (from shortTermDebt, last quarter)
Debt = 1.60b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -2.30b USD (calculated: Debt 1.60b - CCE 3.91b)
Enterprise Value = 335.6m USD (2.64b + Debt 1.60b - CCE 3.91b)
Interest Coverage Ratio = 0.52 (Ebit TTM 205.6m / Interest Expense TTM 399.0m)
EV/FCF = 1.20x (Enterprise Value 335.6m / FCF TTM 280.5m)
FCF Yield = 83.59% (FCF TTM 280.5m / Enterprise Value 335.6m)
FCF Margin = 33.37% (FCF TTM 280.5m / Revenue TTM 840.8m)
Net Margin = 22.12% (Net Income TTM 186.0m / Revenue TTM 840.8m)
Gross Margin = 51.23% ((Revenue TTM 840.8m - Cost of Revenue TTM 410.0m) / Revenue TTM)
Gross Margin QoQ = none% (prev 59.67%)
Tobins Q-Ratio = 0.02 (Enterprise Value 335.6m / Total Assets 21.3b)
Interest Expense / Debt = 24.88% (Interest Expense 399.0m / Debt 1.60b)
Taxrate = 9.56% (19.6m / 205.6m)
NOPAT = 186.0m (EBIT 205.6m * (1 - 9.56%))
Current Ratio = 0.24 (Total Current Assets 4.09b / Total Current Liabilities 16.9b)
Debt / Equity = 0.59 (Debt 1.60b / totalStockholderEquity, last quarter 2.70b)
Debt / EBITDA = -9.80 (Net Debt -2.30b / EBITDA 235.0m)
Debt / FCF = -8.21 (Net Debt -2.30b / FCF TTM 280.5m)
Total Stockholder Equity = 2.56b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.93% (Net Income 186.0m / Total Assets 21.3b)
RoE = 7.26% (Net Income TTM 186.0m / Total Stockholder Equity 2.56b)
RoCE = 6.02% (EBIT 205.6m / Capital Employed (Equity 2.56b + L.T.Debt 856.2m))
RoIC = 4.10% (NOPAT 186.0m / Invested Capital 4.54b)
WACC = 14.04% (E(2.64b)/V(4.24b) * Re(8.90%) + D(1.60b)/V(4.24b) * Rd(24.88%) * (1-Tc(0.10)))
Discount Rate = 8.90% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 45.43 | Cagr: 2.44%
[DCF] Terminal Value 58.97% ; FCFF base≈275.9m ; Y1≈286.9m ; Y5≈325.8m
[DCF] Fair Price = 76.94 (EV 2.54b - Net Debt -2.30b = Equity 4.85b / Shares 63.0m; r=14.04% [WACC]; 5y FCF grow 4.26% → 2.50% )
EPS Correlation: 8.54 | EPS CAGR: 0.69% | SUE: -4.0 | # QB: -1
Revenue Correlation: -16.94 | Revenue CAGR: -1.24% | SUE: -1.13 | # QB: -1
EPS current Quarter (2026-09-30): EPS=1.08 | Chg30d=+0.63% | Revisions=+40% | Analysts=6
EPS current Year (2026-12-31): EPS=4.26 | Chg30d=+0.55% | Revisions=+40% | GrowthEPS=+9.5% | GrowthRev=+17.7%
EPS next Year (2027-12-31): EPS=4.61 | Chg30d=+1.14% | Revisions=+40% | GrowthEPS=+8.1% | GrowthRev=+5.3%
[Analyst] Revisions Ratio: +67% (up=6, down=0)