First Merchants Corporation Depository Shares (FRMEP) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
First Merchants Corporation Depository Shares stock (FRMEP) is currently trading at $25.60. First Merchants Corporation Depository Shares PE ratio is 6.68. WallStSmart rates FRMEP as Sell.
- FRMEP PE ratio analysis and historical PE chart
- FRMEP PS ratio (Price-to-Sales) history and trend
- FRMEP intrinsic value — DCF, Graham Number, EPV models
- FRMEP stock price prediction 2025 2026 2027 2028 2029 2030
- FRMEP fair value vs current price
- FRMEP insider transactions and insider buying
- Is FRMEP undervalued or overvalued?
- First Merchants Corporation Depository Shares financial analysis — revenue, earnings, cash flow
- FRMEP Piotroski F-Score and Altman Z-Score
- FRMEP analyst price target and Smart Rating
First Merchants Corporation Depository Shares
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FRMEP Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · First Merchants Corporation Depository Shares (FRMEP)
FRMEP is trading near its Graham intrinsic value of $25.91, suggesting the stock is reasonably priced 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 Depository Shares (FRMEP) · 7 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 operating margin, profit margin, institutional own.. Concerns around return on equity and revenue growth. Mixed signals suggest waiting for clearer direction before acting.
First Merchants Corporation Depository Shares (FRMEP) Key Strengths (4)
Keeps $43 of every $100 in revenue after operating costs
Keeps $35 of every $100 in revenue as net profit
711.20% of shares held by major funds and institutions
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
First Merchants Corporation Depository Shares (FRMEP) Areas to Watch (3)
Revenue declining -4.60%, a shrinking business
Earnings declining -10.90%, profits shrinking
Low profitability relative to shareholder equity
First Merchants Corporation Depository Shares (FRMEP) Detailed Analysis Report
Overall Assessment
This company scores 36/100 in our Smart Analysis, earning a F grade. Out of 7 metrics analyzed, 4 register as strengths (avg 9.3/10) while 3 fall into concern territory (avg 1.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Profit Margin, Institutional Own.. 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. 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 higher 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
Fundamental challenges outweigh strengths at current levels. Revenue Growth and EPS Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
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.
FRMEP Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
WallStSmart Analysis Synopsis
Data-driven financial summary for First Merchants Corporation Depository Shares (FRMEP) · FINANCIAL SERVICES › BANKS - REGIONAL
The Big Picture
First Merchants Corporation Depository Shares 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 5.6%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 1000M is significantly higher than cash (84M). Monitor refinancing risk.
Sector dynamics: monitor BANKS - REGIONAL industry trends, competitive moves, and regulatory changes that could impact First Merchants Corporation Depository Shares.
Bottom Line
First Merchants Corporation Depository Shares 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 Depository Shares(FRMEP)
NASDAQ
FINANCIAL SERVICES
BANKS - REGIONAL
USA
First Merchants Corporation Depository Shares (ticker: FRMEP) represents a notable investment avenue in the Midwest's financial services landscape, leveraging its strong position as a leading regional bank. The company is adept in commercial banking, consumer lending, and wealth management, providing a diverse range of products tailored to meet the needs of its clientele. With a focus on strategic growth and operational resilience, First Merchants demonstrates a commitment to community-focused banking while prioritizing shareholder value. Its consistent financial performance across varying economic conditions reinforces its attractiveness to institutional investors.