First Merchants Net Income vs. Gross Profit

FRMEP Stock  USD 25.55  0.05  0.20%   
Based on First Merchants' profitability indicators, First Merchants may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess First Merchants' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1989-09-30
Previous Quarter
39.9 M
Current Value
49.2 M
Quarterly Volatility
17.6 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, First Merchants' Days Sales Outstanding is relatively stable compared to the past year. As of 12/16/2024, Days Of Sales Outstanding is likely to grow to 57.54, while Price To Sales Ratio is likely to drop 2.73. At this time, First Merchants' Operating Income is relatively stable compared to the past year. As of 12/16/2024, Net Income is likely to grow to about 235 M, while Net Interest Income is likely to drop slightly above 471.7 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.80.9
Fairly Down
Slightly volatile
Net Profit Margin0.190.342
Way Down
Slightly volatile
Operating Profit Margin0.380.3962
Sufficiently Down
Slightly volatile
Pretax Profit Margin0.360.3962
Moderately Down
Slightly volatile
Return On Assets0.01130.0122
Significantly Down
Slightly volatile
Return On Equity0.10.0996
Slightly Up
Slightly volatile
For First Merchants profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Merchants to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Merchants utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Merchants's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Merchants over time as well as its relative position and ranking within its peers.
  

First Merchants' Revenue Breakdown by Earning Segment

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Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of First Merchants. If investors know First will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about First Merchants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.11)
Dividend Share
1.38
Earnings Share
3.81
Revenue Per Share
10.11
Quarterly Revenue Growth
(0.05)
The market value of First Merchants is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First Merchants' value that differs from its market value or its book value, called intrinsic value, which is First Merchants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because First Merchants' market value can be influenced by many factors that don't directly affect First Merchants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between First Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine if First Merchants is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Merchants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

First Merchants Gross Profit vs. Net Income Fundamental Analysis

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.
First Merchants is one of the top stocks in net income category among its peers. It also is one of the top stocks in gross profit category among its peers fabricating about  2.73  of Gross Profit per Net Income. At this time, First Merchants' Net Income 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 Gross Profit vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

First Merchants

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
223.79 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

First Merchants

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
611.39 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

First Gross Profit Comparison

First Merchants is currently under evaluation in gross profit category among its peers.

First Merchants Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in First Merchants, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Merchants will eventually generate negative long term returns. The profitability progress is the general direction of First Merchants' change in net profit over the period of time. It can combine multiple indicators of First Merchants, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-176 M-167.2 M
Operating Income259.2 M272.2 M
Net Income223.8 M235 M
Income Tax Expense35.4 M37.2 M
Income Before Tax259.2 M272.2 M
Total Other Income Expense Net-55.2 M-58 M
Net Interest Income564.3 M471.7 M
Interest Income847.9 M590.6 M
Net Income From Continuing Ops252.1 M211.2 M
Net Income Applicable To Common Shares253.8 M197.7 M
Change To Netincome54.4 M28.4 M
Net Income Per Share 3.77  3.96 
Income Quality 1.16  1.36 
Net Income Per E B T 0.86  0.60 

First Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on First Merchants. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of First Merchants position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the First Merchants' important profitability drivers and their relationship over time.

Use First Merchants in pair-trading

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.

First Merchants Pair Trading

First Merchants Pair Trading Analysis

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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your First Merchants position

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.

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High Yield ETFs Theme
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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.