A Business at a Glance
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FIRST MERCHANTS CORP
FRME
$2.5B
Mkt Cap
$43.18
+3.08%
FIRST MERCHANTS CORP (FRME) has a current P/E ratio of 11.1, compared to its historical median P/E of 10.2. The stock is currently considered Fair based on its historical valuation range.
FIRST MERCHANTS CORP (FRME) has a 5-year average return on invested capital (ROIC) of 10.1%. This indicates solid capital allocation.
FIRST MERCHANTS CORP (FRME) has a market capitalization of $2.7B. It is classified as a mid-cap stock.
Yes, FIRST MERCHANTS CORP (FRME) pays a dividend with a trailing twelve-month yield of 3.16%. The company also returns capital through share buybacks, with a buyback yield of 2.37%.
Based on historical P/E analysis, FIRST MERCHANTS CORP (FRME) appears fair. The current P/E of 11.1 is 9% above its historical median of 10.2. The estimated fair value CAGR (P/E method) is 3.7%.
FIRST MERCHANTS CORP (FRME) operates in the National Commercial Banks industry, within the Financials sector.
FIRST MERCHANTS CORP (FRME) reported annual revenue of $1.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
First Merchants Corporation (the “Corporation”) is a financial holding company headquartered in Muncie, Indiana and was organized in September 1982. The Corporation’s common stock is traded on the Nasdaq Global Select Market System under the symbol FRME. The Corporation has one full-service bank charter, First Merchants Bank, which opened for business in Muncie, Indiana in March 1893. The Bank also operates First Merchants Private Wealth Advisors (a division of First Merchants Bank). The Bank includes 111 banking locations in Indiana, Ohio, and Michigan. In addition to its branch network, the Corporation offers comprehensive electronic and mobile delivery channels to its customers. The Corporation’s business activities are currently limited to one significant business segment, which is community banking. Through the Bank, the Corporation offers a broad range of commercial and consumer banking services to meet the diverse needs of our customers.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 660M | 1.1B | 1.1B | 999M | 713M | 556M |
| Net Income | 197M | 224M | 200M | 222M | 221M | 206M |
| EPS | $3.41 | $3.88 | $3.41 | $3.73 | $3.81 | $3.81 |
| Free Cash Flow | 0 | 284M | 266M | 259M | 284M | 215M |
| ROIC | 7.4% | 9.4% | 8.8% | 10.4% | 11.2% | 10.9% |
| Gross Margin | - | 65.2% | 60.7% | 69.0% | 85.8% | 93.5% |
| Debt/Equity | 0.00 | 6.71 | 6.94 | 7.19 | 7.85 | 7.08 |
| Dividends/Share | $1.36 | $1.43 | $1.39 | $1.34 | $1.25 | $1.13 |
| Operating Income | 3.2M | 259M | 232M | 259M | 256M | 241M |
| Operating Margin | 0.5% | 24.6% | 21.6% | 25.9% | 35.9% | 43.3% |
| ROE | 7.4% | 9.4% | 8.8% | 10.4% | 11.2% | 10.9% |
| Shares Outstanding | 63M | 58M | 59M | 59M | 58M | 54M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 271M | 291M | 319M | 386M | 484M | 552M | 558M | 556M | 713M | 999M | 1.1B | 1.1B | 660M |
| Gross Margin | 91.0% | 91.3% | 89.8% | 87.9% | 84.2% | 79.8% | 77.6% | 93.5% | 85.8% | 69.0% | 60.7% | 65.2% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 96M | 102M | 103M | 120M | 132M | 144M | 156M | 167M | 207M | 229M | 221M | 225M | 240M |
| EBIT | 82M | 91M | 109M | 134M | 188M | 194M | 170M | 241M | 256M | 259M | 232M | 259M | 3.2M |
| Op. Margin | 30.4% | 31.3% | 34.1% | 34.6% | 38.8% | 35.1% | 30.4% | 43.3% | 35.9% | 25.9% | 21.6% | 24.6% | 0.5% |
| Net Income | 60M | 65M | 81M | 96M | 159M | 164M | 149M | 206M | 221M | 222M | 200M | 224M | 197M |
| Net Margin | 22.2% | 22.5% | 25.4% | 24.9% | 32.9% | 29.8% | 26.6% | 37.0% | 31.0% | 22.2% | 18.6% | 21.3% | 29.9% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20M | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 8.8% | 8.3% | 9.3% | 8.7% | 11.7% | 10.3% | 8.1% | 10.9% | 11.2% | 10.4% | 8.8% | 9.4% | 7.4% |
| ROE | 8.8% | 8.3% | 9.3% | 8.7% | 11.7% | 10.3% | 8.1% | 10.9% | 11.2% | 10.4% | 8.8% | 9.4% | 7.4% |
| ROA | 1.1% | 1.0% | 1.2% | 1.2% | 1.7% | 1.5% | 1.1% | 1.4% | 1.3% | 1.2% | 1.1% | 1.2% | 0.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 76M | 57M | 104M | 127M | 180M | 177M | 204M | 215M | 284M | 259M | 266M | 284M | 281M |
| Free Cash Flow | 76M | 57M | 104M | 127M | 180M | 177M | 204M | 215M | 284M | 259M | 266M | 284M | 0 |
| Owner Earnings | 68M | 48M | 94M | 116M | 168M | 163M | 188M | 200M | 268M | 242M | 234M | 247M | 46M |
| CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Maint. CapEx | 6.0M | 6.3M | 7.2M | 8.0M | 8.8M | 9.4M | 11M | 11M | 12M | 12M | 27M | 29M | 228M |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 |
| D&A | 6.0M | 6.3M | 7.2M | 8.0M | 8.8M | 9.4M | 11M | 11M | 12M | 12M | 27M | 29M | 228M |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 11M | 16M | 22M | 32M | 42M | 51M | 57M | 61M | 73M | 80M | 82M | 83M | 85M |
| Dividend Yield | 1.9% | 2.3% | 2.7% | 2.3% | 2.5% | 3.3% | 4.3% | 3.1% | 3.5% | 4.6% | 4.1% | 3.8% | 3.2% |
| Share Buybacks | 1.1M | 1.6M | 2.0M | 0 | 0 | 19M | 56M | 25M | 0 | 0 | 56M | 47M | 64M |
| Buyback Yield | 0.2% | 0.2% | 0.2% | N/A | N/A | 1.1% | 3.3% | 1.3% | N/A | N/A | 2.5% | 2.1% | 2.4% |
| Stock-Based Comp | 2.2M | 2.3M | 2.6M | 2.8M | 3.6M | 4.1M | 4.6M | 4.8M | 4.7M | 5.2M | 5.8M | 7.3M | 7.4M |
| Debt Repayment | 790M | 371M | 982M | 1.0B | 1.7B | 643M | 622M | 96M | 1.3B | 1.1B | 510M | 1.0B | 1.0B |
| Balance Sheet | |||||||||||||
| Net Debt | -256M | -192M | -131M | -320M | -610M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -98M |
| Cash & Equiv. | 119M | 102M | 128M | 155M | 139M | 177M | 193M | 167M | 123M | 113M | 88M | 84M | 98M |
| Long-Term Debt | N/A | N/A | N/A | N/A | 671M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.57 | 0.67 | 0.77 | 0.64 | 0.48 | 5.97 | 6.50 | 7.08 | 7.85 | 7.19 | 6.94 | 6.71 | 0.00 |
| Interest Coverage | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0 |
| Equity | 727M | 851M | 902M | 1.3B | 1.4B | 1.8B | 1.9B | 1.9B | 2.0B | 2.2B | 2.3B | 2.5B | 2.7B |
| Total Assets | 5.8B | 6.8B | 7.2B | 9.4B | 9.9B | 12.5B | 14.1B | 15.5B | 18.0B | 18.4B | 18.3B | 19.0B | 21.1B |
| Total Liabilities | 5.1B | 5.9B | 6.3B | 8.1B | 8.5B | 10.7B | 12.2B | 13.5B | 16.0B | 16.2B | 16.0B | 16.6B | 18.4B |
| Intangibles | 16M | 17M | 15M | 31M | 24M | 35M | 29M | 25M | 36M | 27M | 20M | 14M | 42M |
| Retained Earnings | 292M | 342M | 401M | 465M | 583M | 697M | 789M | 865M | 1.0B | 1.2B | 1.3B | 1.4B | 1.4B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 1.65 | 1.72 | 1.98 | 2.12 | 3.22 | 3.19 | 2.74 | 3.81 | 3.81 | 3.73 | 3.41 | 3.88 | 3.41 |
| Owner EPS | 1.86 | 1.27 | 2.30 | 2.55 | 3.40 | 3.17 | 3.47 | 3.71 | 4.62 | 4.07 | 3.99 | 4.27 | 0.73 |
| Book Value | 19.93 | 22.37 | 22.03 | 28.76 | 28.49 | 34.65 | 34.58 | 35.45 | 35.13 | 37.78 | 39.39 | 42.70 | 42.76 |
| Cash Flow/Share | 2.08 | 1.49 | 2.53 | 2.79 | 3.65 | 3.43 | 3.76 | 3.99 | 4.91 | 4.35 | 4.55 | 4.91 | 6.79 |
| Dividends/Share | 0.29 | 0.41 | 0.54 | 0.69 | 0.84 | 1.00 | 1.04 | 1.13 | 1.25 | 1.34 | 1.39 | 1.43 | 1.36 |
| Shares Out. | 36.5M | 38.0M | 40.9M | 45.3M | 49.4M | 51.6M | 54.2M | 53.9M | 57.9M | 59.5M | 58.5M | 57.8M | 62.5M |
| Valuation | |||||||||||||
| P/E Ratio | 10.2 | 11.1 | 14.5 | 15.7 | 8.4 | 10.5 | 11.5 | 9.5 | 9.4 | 9.4 | 11.4 | 9.9 | 12.7 |
| P/FCF | 8.1 | 12.9 | 11.4 | 11.9 | 7.4 | 9.8 | 8.4 | 9.1 | 7.3 | 8.0 | 8.5 | 7.8 | N/A |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 819.0 |
| Price/Book | 0.8 | 0.9 | 1.3 | 1.2 | 0.9 | 1.0 | 0.9 | 1.0 | 1.0 | 0.9 | 1.0 | 0.9 | 1.0 |
| Price/Sales | 2.2 | 2.6 | 2.8 | 4.0 | 4.1 | 3.5 | 2.7 | 3.8 | 3.3 | 2.7 | 3.1 | 3.3 | 4.1 |
| FCF Yield | 12.3% | 7.8% | 8.8% | 8.4% | 13.5% | 10.2% | 11.9% | 11.0% | 13.8% | 12.5% | 11.7% | 12.8% | N/A |
| Market Cap | 615M | 729M | 1.2B | 1.5B | 1.3B | 1.7B | 1.7B | 1.9B | 2.1B | 2.1B | 2.3B | 2.2B | 2.7B |
| Avg. Price | 15.32 | 18.23 | 19.92 | 31.05 | 34.38 | 30.38 | 24.50 | 36.27 | 35.97 | 29.20 | 34.33 | 38.09 | 43.18 |
| Year-End Price | 16.86 | 19.17 | 28.80 | 33.21 | 26.93 | 33.47 | 31.57 | 36.13 | 35.65 | 34.88 | 38.81 | 38.26 | 43.18 |
FIRST MERCHANTS CORP passes 5 of 9 quality checks, suggesting mixed fundamentals.
FIRST MERCHANTS CORP trades at 11.1x trailing earnings, compared to its 15-year median P/E of 10.2x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 8.8x vs a median of 8.5x. The company's 5-year average ROIC is 10.1% with a gross margin of 74.9%. Total shareholder yield (dividends + buybacks) is 5.5%. At current prices, the estimated annualized return to fair value is +5.0%.
FIRST MERCHANTS CORP (FRME) has a net profit margin of 21.3%. This is a strong margin indicating high profitability.
FIRST MERCHANTS CORP (FRME) generated $284 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
FIRST MERCHANTS CORP (FRME) has a debt-to-equity ratio of 6.71. This indicates higher leverage, which may increase financial risk.
FIRST MERCHANTS CORP (FRME) reported earnings per share (EPS) of $3.88 in its most recent fiscal year.
FIRST MERCHANTS CORP (FRME) has a return on equity (ROE) of 9.4%. This indicates moderate shareholder returns.
FIRST MERCHANTS CORP (FRME) has a 5-year average gross margin of 74.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for FIRST MERCHANTS CORP (FRME), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
FIRST MERCHANTS CORP (FRME) has a book value per share of $42.70, based on its most recent annual SEC filing.
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