First Merchants Stock Fundamentals
| FRMEP Stock | USD 25.55 0.05 0.20% |
First Merchants fundamentals help investors to digest information that contributes to First Merchants' financial success or failures. It also enables traders to predict the movement of First Stock. The fundamental analysis module provides a way to measure First Merchants' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to First Merchants stock.
At this time, First Merchants' Depreciation And Amortization is relatively stable compared to the past year. As of 12/15/2024, Interest Expense is likely to grow to about 365.9 M, while Net Interest Income is likely to drop slightly above 471.7 M. First | Select Account or Indicator |
First Merchants Company Profit Margin Analysis
First Merchants' Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Current First Merchants Profit Margin | 0.30 % |
Most of First Merchants' fundamental indicators, such as Profit Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, First Merchants is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Profit Margin Historical Pattern
Today, most investors in First Merchants Stock are looking for potential investment opportunities by analyzing not only static indicators but also various First Merchants' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's profit margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of First Merchants profit margin as a starting point in their analysis.
First Merchants Profit Margin |
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In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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First Pretax Profit Margin
Pretax Profit Margin |
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Based on the latest financial disclosure, First Merchants has a Profit Margin of 0.3027%. This is 97.4% lower than that of the Banks sector and significantly higher than that of the Financials industry. The profit margin for all United States stocks is 123.83% lower than that of the firm.
First Merchants Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining First Merchants's current stock value. Our valuation model uses many indicators to compare First Merchants value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across First Merchants competition to find correlations between indicators driving First Merchants's intrinsic value. More Info.First Merchants is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in return on asset category among its peers reporting about 0.12 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for First Merchants is roughly 8.25 . At this time, First Merchants' Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value First Merchants by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.First Profit Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses First Merchants' direct or indirect competition against its Profit Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of First Merchants could also be used in its relative valuation, which is a method of valuing First Merchants by comparing valuation metrics of similar companies.First Merchants is currently under evaluation in profit margin category among its peers.
First Merchants Current Valuation Drivers
We derive many important indicators used in calculating different scores of First Merchants from analyzing First Merchants' financial statements. These drivers represent accounts that assess First Merchants' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of First Merchants' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 2.1B | 2.0B | 2.3B | 2.4B | 2.2B | 2.3B | |
| Enterprise Value | 2.3B | 1.9B | 2.1B | 3.1B | 3.0B | 3.1B |
First Merchants ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, First Merchants' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to First Merchants' managers, analysts, and investors.Environmental | Governance | Social |
First Fundamentals
| Return On Equity | 0.0817 | ||||
| Return On Asset | 0.0099 | ||||
| Profit Margin | 0.30 % | ||||
| Operating Margin | 0.42 % | ||||
| Current Valuation | 2.16 B | ||||
| Shares Owned By Institutions | 100.00 % | ||||
| Number Of Shares Shorted | 27 | ||||
| Price To Earning | 6.62 X | ||||
| Revenue | 654.31 M | ||||
| Gross Profit | 611.39 M | ||||
| EBITDA | 270.94 M | ||||
| Net Income | 223.79 M | ||||
| Cash And Equivalents | 299.12 M | ||||
| Cash Per Share | 5.06 X | ||||
| Total Debt | 871.5 M | ||||
| Book Value Per Share | 39.18 X | ||||
| Cash Flow From Operations | 258.83 M | ||||
| Earnings Per Share | 3.81 X | ||||
| Number Of Employees | 2.16 K | ||||
| Beta | 1.02 | ||||
| Total Asset | 18.41 B | ||||
| Retained Earnings | 1.15 B | ||||
| Annual Yield | 0.07 % | ||||
| Net Asset | 18.41 B | ||||
| Last Dividend Paid | 1.38 |
About First Merchants Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze First Merchants's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of First Merchants using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of First Merchants based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for Next Year | ||
| Current Deferred Revenue | -18.9 M | -19.9 M | |
| Total Revenue | 654.3 M | 687 M | |
| Cost Of Revenue | 1.1 M | 1000 K | |
| Stock Based Compensation To Revenue | 0.01 | 0.01 | |
| Sales General And Administrative To Revenue | 0.37 | 0.27 | |
| Capex To Revenue | 0.11 | 0.20 | |
| Revenue Per Share | 11.03 | 11.58 | |
| Ebit Per Revenue | 0.40 | 0.38 |
Pair Trading with First Merchants
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if First Merchants position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First Merchants will appreciate offsetting losses from the drop in the long position's value.Moving together with First Stock
| 0.78 | AX | Axos Financial | PairCorr |
| 0.78 | BY | Byline Bancorp Fiscal Year End 23rd of January 2025 | PairCorr |
| 0.76 | PB | Prosperity Bancshares Fiscal Year End 22nd of January 2025 | PairCorr |
Moving against First Stock
| 0.77 | CFG-PE | Citizens Financial | PairCorr |
| 0.7 | TFC-PR | Truist Financial | PairCorr |
| 0.67 | TFC-PO | Truist Financial | PairCorr |
| 0.6 | WF | Woori Financial Group | PairCorr |
The ability to find closely correlated positions to First Merchants could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Merchants when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First Merchants - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First Merchants to buy it.
The correlation of First Merchants is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Merchants moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Merchants moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for First Merchants can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.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.