First Merchants Stock Buy Hold or Sell Recommendation
| FRMEP Stock | USD 25.55 0.05 0.20% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding First Merchants is 'Hold'. A buy or sell recommendation provided by Macroaxis is an automated analysis based on historical performance and your stated risk tolerance. It serves as guidance on whether to purchase or sell First Merchants within the specified time frame.
Check out First Merchants Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in First Stock, please use our How to Invest in First Merchants guide. Note, we conduct extensive research on individual companies such as First and provide practical buy, sell, or hold advice based on investors' constraints. First Merchants. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.
First |
Execute First Merchants Buy or Sell Advice
The First recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on First Merchants. Macroaxis does not own or have any residual interests in First Merchants or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute First Merchants' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Sell | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
First Merchants Trading Alerts and Improvement Suggestions
| On 15th of November 2024 First Merchants paid $ 0.4688 per share dividend to its current shareholders | |
| Latest headline from news.google.com: First Merchants Co. Shares Acquired by Systematic Financial Management LP - MarketBeat |
First Merchants Returns Distribution Density
The distribution of First Merchants' historical returns is an attempt to chart the uncertainty of First Merchants' future price movements. The chart of the probability distribution of First Merchants daily returns describes the distribution of returns around its average expected value. We use First Merchants price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of First Merchants returns is essential to provide solid investment advice for First Merchants.
| Mean Return | 0.04 | Value At Risk | -0.82 | Potential Upside | 0.93 | Standard Deviation | 0.50 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of First Merchants historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
First Merchants Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 38.0M | 15.7M | (25.8M) | (44.6M) | (9.9M) | (9.4M) | |
| Free Cash Flow | (134.0M) | 204.8M | 143.1M | 268.0M | 258.8M | 271.8M | |
| Depreciation | 9.4M | 11.0M | 10.7M | 11.8M | 11.7M | 12.3M | |
| Other Non Cash Items | 3.6M | 63.9M | (12.0M) | 42.6M | 16.0M | 14.0M | |
| Dividends Paid | 51.3M | 56.5M | 61.2M | 74.2M | 81.9M | 86.0M | |
| Net Income | 164.5M | 148.6M | 205.5M | 222.1M | 223.8M | 235.0M | |
| End Period Cash Flow | 177.2M | 192.9M | 167.1M | 122.6M | 112.6M | 116.4M | |
| Investments | (498.6M) | (759.0M) | (1.5B) | (446.4M) | (275.6M) | (289.4M) | |
| Net Borrowings | (43.9M) | (47.8M) | (50.7M) | 485.5M | 558.3M | 586.2M | |
| Change To Netincome | 6.0M | 67.5M | (7.2M) | 47.3M | 54.4M | 28.4M |
First Merchants Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to First Merchants or Banks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that First Merchants' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a First stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.03 | |
β | Beta against Dow Jones | -0.02 | |
σ | Overall volatility | 0.51 | |
Ir | Information ratio | -0.12 |
First Merchants Volatility Alert
First Merchants exhibits relatively low volatility with skewness of 0.47 and kurtosis of 3.56. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure First Merchants' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact First Merchants' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.First Merchants Fundamentals Vs Peers
Comparing First Merchants' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze First Merchants' direct or indirect competition across all of the common fundamentals between First Merchants and the related equities. This way, we can detect undervalued stocks with similar characteristics as First Merchants or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of First Merchants' fundamental indicators could also be used in its relative valuation, which is a method of valuing First Merchants by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare First Merchants to competition |
| Fundamentals | First Merchants | Peer Average |
| Return On Equity | 0.0817 | -0.31 |
| Return On Asset | 0.0099 | -0.14 |
| Profit Margin | 0.30 % | (1.27) % |
| Operating Margin | 0.42 % | (5.51) % |
| Current Valuation | 2.16 B | 16.62 B |
| Shares Owned By Institutions | 100.00 % | 39.21 % |
| Number Of Shares Shorted | 27 | 4.71 M |
| Price To Earning | 6.62 X | 28.72 X |
| Revenue | 654.31 M | 9.43 B |
| Gross Profit | 611.39 M | 27.38 B |
| EBITDA | 270.94 M | 3.9 B |
| Net Income | 223.79 M | 570.98 M |
| Cash And Equivalents | 299.12 M | 2.7 B |
| Cash Per Share | 5.06 X | 5.01 X |
| Total Debt | 871.5 M | 5.32 B |
| Book Value Per Share | 39.18 X | 1.93 K |
| Cash Flow From Operations | 258.83 M | 971.22 M |
| Earnings Per Share | 3.81 X | 3.12 X |
| Number Of Employees | 2.16 K | 18.84 K |
| Beta | 1.02 | -0.15 |
| Total Asset | 18.41 B | 29.47 B |
| Retained Earnings | 1.15 B | 9.33 B |
| Annual Yield | 0.07 % | |
| Net Asset | 18.41 B | |
| Last Dividend Paid | 1.38 |
Note: Acquisition by Fisher Michael J of 663 shares of First Merchants at 32.95 subject to Rule 16b-3 [view details]
First Merchants Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as First . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About First Merchants Buy or Sell Advice
When is the right time to buy or sell First Merchants? Buying financial instruments such as First Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having First Merchants in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for First Stock Analysis
When running First Merchants' price analysis, check to measure First Merchants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Merchants is operating at the current time. Most of First Merchants' value examination focuses on studying past and present price action to predict the probability of First Merchants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Merchants' price. Additionally, you may evaluate how the addition of First Merchants to your portfolios can decrease your overall portfolio volatility.