First Merchants (FRME) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

First Merchants

NasdaqGS•Financial Services•Banks - Regional

$41.42+0.06(<0.01%)Market open

Market Cap

$2.57B

P/E

13.0x

P/S

3.5x

P/B

1.0x

First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides commercial and consumer banking services. The company offers a range of financial services, including checking, savings, and deposit products; debit and credit cards; mortgages, refinance, construction or renovation of residential properties, agricultural lending, treasury management services and depository products. It also provides personal and commercial wealth management services, brokerage, investment management, private banking, fiduciary estate, and financial planning services. The company operates banking locations in Indiana, Ohio, and Michigan counties. It offers its services through electronic and mobile delivery channels. First Merchants Corporation was founded in 1893 and is headquartered in Muncie, Indiana.

How this company scores

WeakMetricSide Score: 61/100

Grade capped at D — Interest coverage below 1× (0.8x) — earnings cannot cover interest. Strongest: Cash & Earnings Quality (23/25); weakest: Growth (10/25).

Profitability15/25

Growth10/25

Balance Sheet & Red Flags13/25

Cash & Earnings Quality23/25

Strengths

Strong marginsLow leverageCash-backed earningsConsistent free cash flow

Grade capped at D

Interest coverage below 1× (0.8x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 13.0x5y range 8.4x – 14.5x

Currently above its 20-quarter median.

P/S · 3.5x5y range 3.2x – 4.0x

Currently near its 20-quarter median.

P/B · 1.0x5y range 0.9x – 1.1x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 26.0% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Share Dilution

Red Flag

Shares outstanding increased 7.2% — significant dilution, likely from stock compensation or capital raises.

Price & Volume

Market Cap $2.57B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $724.47M
Q. Revenue: $199.07M
TTM EBITDA: $252.79M
TTM Op. Income: $219.85M
Q. Op. Income: $79.52M
TTM Net Income: $197.52M
Q. Net Income: $68.31M
EPS: $1.09
Shares Out.: $62.16M

$724.47M in TTM revenue grew 8.5% YoY, reaching $199.07M last quarter. TTM EBITDA of $252.79M and TTM operating income of $219.85M show growth is flowing through to the bottom line. TTM net income of $197.52M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 48.3%
EBITDA Margin: 41.3%
Op. Margin: 39.9%
Net Margin: 34.3%

Op. margin of 39.9% is up 0.7% YoY — cost efficiency is improving. Net margin at 34.3% and gross margin of 48.3% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 13.0x
P/S Ratio: 3.5x
P/B Ratio: 1.0x

At 13.0x P/E, the stock trades below typical market levels. P/S of 3.5x and P/B of 1.0x provide additional context. P/E sits below typical market levels while revenue is growing. Over the past year, P/E is up 42% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $21.06B
Cash: $86.59M
Long-Term Debt: $1.19B
Book Value: $2.64B
D/E Ratio: 0.5
Debt/EBITDA: 14.5

With $21.06B in assets and $1.19B in long-term debt, D/E is 0.5and book value is $2.64B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 2 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $78.40M
TTM Free Cash Flow: $305.74M
FCF Margin: 42.2%
FCF / Net Income: 1.5

TTM FCF of $305.74M on $78.40M in operating cash flow. The FCF / Net Income ratio of 1.5x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 13% — a weakening trend.