First Merchants Corporation (FRME) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
First Merchants Corporation stock (FRME) is currently trading at $38.18. First Merchants Corporation PE ratio is 9.79. First Merchants Corporation PS ratio (Price-to-Sales) is 3.75. Analyst consensus price target for FRME is $46.80. WallStSmart rates FRME as Hold.
- FRME PE ratio analysis and historical PE chart
- FRME PS ratio (Price-to-Sales) history and trend
- FRME intrinsic value — DCF, Graham Number, EPV models
- FRME stock price prediction 2025 2026 2027 2028 2029 2030
- FRME fair value vs current price
- FRME insider transactions and insider buying
- Is FRME undervalued or overvalued?
- First Merchants Corporation financial analysis — revenue, earnings, cash flow
- FRME Piotroski F-Score and Altman Z-Score
- FRME analyst price target and Smart Rating
First Merchants Corporation
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FRME Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · First Merchants Corporation (FRME)
FRME trades 59% above its Graham fair value of $26.38, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
First Merchants Corporation (FRME) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, operating margin, price/book. Concerns around return on equity and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
First Merchants Corporation (FRME) Key Strengths (6)
Keeps $43 of every $100 in revenue after operating costs
Trading below book value, meaning the market prices it less than net assets
Keeps $35 of every $100 in revenue as net profit
71.25% of shares held by major funds and institutions
Good growth relative to its price
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
First Merchants Corporation (FRME) Areas to Watch (4)
Revenue declining -4.60%, a shrinking business
Earnings declining -10.90%, profits shrinking
Low profitability relative to shareholder equity
Revenue is fairly priced at 3.75x sales
First Merchants Corporation (FRME) Detailed Analysis Report
Overall Assessment
This company scores 64/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 6 register as strengths (avg 9.2/10) while 4 fall into concern territory (avg 2.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Price/Book, Profit Margin. Valuation metrics including PEG Ratio (1.40), Price/Book (0.99) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 42.70%, Profit Margin at 35.20%.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Return on Equity. Some valuation metrics including Price/Sales (3.75) suggest expensive pricing. Growth concerns include Revenue Growth at -4.60%, EPS Growth at -10.90%, which may limit upside. Profitability pressure is visible in Return on Equity at 9.47%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 9.47% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -4.60% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Price/Book) and negatives (Revenue Growth, EPS Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
FRME Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
FRME's Price-to-Sales ratio of 3.75x trades 25% below its historical average of 5x (29th percentile). The current valuation is 57% below its historical high of 8.69x set in Oct 2017, and 195% above its historical low of 1.27x in Feb 2010.
WallStSmart Analysis Synopsis
Data-driven financial summary for First Merchants Corporation (FRME) · FINANCIAL SERVICES › BANKS - REGIONAL
The Big Picture
First Merchants Corporation faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 642M with 5% decline year-over-year. Profit margins are strong at 35.2%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 35.2% and operating margin of 42.7% demonstrate strong pricing power and operational efficiency.
Generating 81M in free cash flow and 81M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Dividend sustainability with a current yield of 3.8%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor BANKS - REGIONAL industry trends, competitive moves, and regulatory changes that could impact First Merchants Corporation.
Bottom Line
First Merchants Corporation faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About First Merchants Corporation(FRME)
NASDAQ
FINANCIAL SERVICES
BANKS - REGIONAL
USA
First Merchants Corporation is the financial holding company for First Merchants Bank providing community banking services. The company is headquartered in Muncie, Indiana.