FRME Stock Analysis: First Merchants | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 2.553m USD | 12M Return: 8.4% | US3208171096 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 17.9M
EPS Trend: 8.5%
Qual. Beats: -1
Rev. Trend: 72.7%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 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 0.08 > 1.0 |
| NWC/Revenue: -1.17k% < 20% (prev -1.37k%; Δ 193.1% < -1%) |
| CFO/TA 0.01 > 3% & CFO 314.9m > Net Income 186.0m |
| Net Debt (-2.30b) to EBITDA (235.7m): -9.78 < 3 |
| Current Ratio: 0.24 > 1.5 & < 3 |
| Outstanding Shares: last quarter (62.6m) vs 12m ago 8.31% < -2% |
| Gross Margin: 58.82% > 18% (prev 59.67%; Δ -0.85% > 0.5%) |
| Asset Turnover: 5.45% > 50% (prev 5.58%; Δ -0.13% > 0%) |
| Interest Coverage Ratio: 0.52 > 6 (EBIT TTM 206.3m / 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 206.3m / Avg Total Assets 20.0b) |
| D: 0.14 (Book Value of Equity 2.70b / Total Liabilities 18.7b) |
| Altman-Z'' = -3.49 = D |
| DSRI: 1.04 (Receivables 101.9m/93.3m, Revenue 1.09b/1.04b) |
| GMI: 1.01 (GM 59.67% / 58.82%) |
| AQI: 0.84 (AQ_t 0.80 / AQ_t-1 0.95) |
| SGI: 1.05 (Revenue 1.09b / 1.04b) |
| TATA: -0.01 (NI 186.0m - CFO 314.9m) / TA 21.3b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of September 27, 2026, the stock is trading at USD 40.71 with a total of 754,488 shares traded. Over the past week, the price has changed by -0.39%, over one month by -1.18%, over three months by -5.30% and over the past year by +8.44%.
Current recommended Stop Loss: 39.70 (which is 2.5% or 1.4 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 | 17.9% |
P/E Trailing = 13.0707
P/E Forward = 11.0742
P/S = 3.9753
P/B = 0.9613
P/EG = 1.395
Revenue TTM = 1.09b USD
EBIT TTM = 206.3m USD
EBITDA TTM = 235.7m 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 = 248.5m USD (2.55b + Debt 1.60b - CCE 3.91b)
Interest Coverage Ratio = 0.52 (Ebit TTM 206.3m / Interest Expense TTM 399.0m)
EV/FCF = 0.79x (Enterprise Value 248.5m / FCF TTM 314.9m)
FCF Yield = 126.7% (FCF TTM 314.9m / Enterprise Value 248.5m)
FCF Margin = 28.93% (FCF TTM 314.9m / Revenue TTM 1.09b)
Net Margin = 17.08% (Net Income TTM 186.0m / Revenue TTM 1.09b)
Gross Margin = 58.82% ((Revenue TTM 1.09b - Cost of Revenue TTM 448.3m) / Revenue TTM)
Gross Margin QoQ = 54.73% (prev 59.67%)
Tobins Q-Ratio = 0.01 (Enterprise Value 248.5m / Total Assets 21.3b)
Interest Expense / Debt = 24.88% (Interest Expense 399.0m / Debt 1.60b)
Taxrate = 9.56% (19.6m / 205.6m)
NOPAT = 186.6m (EBIT 206.3m * (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 = -9.78 (Net Debt -2.30b / EBITDA 235.7m)
Debt / FCF = -7.32 (Net Debt -2.30b / FCF TTM 314.9m)
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 = 6.04% (EBIT 206.3m / Capital Employed (Equity 2.56b + L.T.Debt 856.2m))
RoIC = 4.13% (NOPAT 186.6m / Invested Capital 4.52b)
WACC = 13.78% (E(2.55b)/V(4.16b) * Re(8.30%) + D(1.60b)/V(4.16b) * Rd(24.88%) * (1-Tc(0.10)))
Discount Rate = 8.30% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 45.43 | Cagr: 2.44%
[DCF] Terminal Value 62.46% ; FCFF base≈292.8m ; Y1≈335.7m ; Y5≈494.0m
[DCF] Fair Price = 96.72 (EV 3.77b - Net Debt -2.30b = Equity 6.07b / Shares 62.8m; r=13.78% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 8.54 | EPS CAGR: 0.69% | SUE: -4.0 | # QB: -1
Revenue Correlation: 72.74 | Revenue CAGR: 2.76% | SUE: 0.70 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.04 | Chg30d=-3.10% | Revisions=+0% | Analysts=6
EPS current Year (2026-12-31): EPS=3.86 | Chg30d=-9.31% | Revisions=-67% | GrowthEPS=-0.7% | GrowthRev=+17.2%
EPS next Year (2027-12-31): EPS=4.48 | Chg30d=-2.71% | Revisions=-12% | GrowthEPS=+16.0% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: -35% (up=5, down=12)