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

$41.06-0.67(-0.02%)Pre-market

Market Cap

$2.55B

P/E

13.7x

P/S

3.7x

P/B

0.9x

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: 59/100

Grade capped at D — Interest coverage below 1× (0.5x) — earnings cannot cover interest. Strongest: Cash & Earnings Quality (25/25); weakest: Balance Sheet & Red Flags (9/25).

Profitability15/25

Growth10/25

Balance Sheet & Red Flags9/25

Cash & Earnings Quality25/25

Strengths

Rising free cash flowStrong marginsCash-backed earningsConsistent free cash flow

Grade capped at D

Interest coverage below 1× (0.5x) — 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 · 13.7x5y range 6.5x – 13.7x

Currently above its 20-quarter median.

P/S · 3.7x5y range 2.5x – 4.4x

Currently near its 20-quarter median.

P/B · 0.9x5y range 0.8x – 1.2x

Watch items

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

High Risk

Margin Pressure

Red Flag

Operating margins dropped 24.9% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Leverage Risk

Watch

Debt-to-equity has risen 20.2% recently — increasing financial risk even if the current ratio is manageable.

Price & Volume

Market Cap $2.55B

Metrics at a Glance

as of June 2026

Revenue & Profit

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

TTM Revenue: $691.54M
Q. Revenue: $196.10M
TTM EBITDA: $237.40M
TTM Op. Income: $205.62M
Q. Op. Income: $47.75M
TTM Net Income: $185.97M
Q. Net Income: $43.98M
EPS: $0.7
Shares Out.: $62.29M

$691.54M in TTM revenue grew 5.1% YoY, reaching $196.10M last quarter. TTM EBITDA of $237.40M and TTM operating income of $205.62M show growth is flowing through to the bottom line. TTM net income of $185.97M means revenue is converting into profit. Over the past year, TTM revenue is up 5% — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 48.0%
EBITDA Margin: 25.7%
Op. Margin: 24.4%
Net Margin: 22.4%

Op. margin of 24.4% is down 15.3% YoY — costs are rising relative to revenue. Net margin at 22.4% and gross margin of 48.0% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 39% — an improving trend.

Price Ratios

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

P/E Ratio: 13.7x
P/S Ratio: 3.7x
P/B Ratio: 0.9x

At 13.7x P/E, the stock trades below typical market levels. P/S of 3.7x and P/B of 0.9x provide additional context. P/E sits below typical market levels while revenue is growing. Across the last 8 quarters, P/E has risen for 3 consecutive quarters — a weakening trend.

Assets & Liabilities

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

Total Assets: $21.35B
Cash: $86.67M
Long-Term Debt: $1.60B
Book Value: $2.70B
D/E Ratio: 0.6
Debt/EBITDA: 31.8

With $21.35B in assets and $1.60B in long-term debt, D/E is 0.6and book value is $2.70B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 20% — an improving trend.

Cash Flow

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

Op. Cash Flow: $88.04M
TTM Free Cash Flow: $314.90M
FCF Margin: 45.5%
FCF / Net Income: 1.7

TTM FCF of $314.90M on $88.04M in operating cash flow. The FCF / Net Income ratio of 1.7x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 21% — an improving trend.