Stock AnalizFirst Merchants Corp. FRME
Major Banks · data as of November 13, 2026
First Merchants Corp. (FRME) is a financial company listed in the US with a market value of about $2.6B. In the twelve months to September 30, 2026 it had revenue of $724M and net income of $198M, a net margin of 27.3%.
Its overall Stock Analiz score is 2.4 out of 5 (weak). The strongest part is value (4/5); the weakest is future growth (1/5).
Key numbers: a P/E of 12.7, a price to free cash flow of 8.4, 5-year revenue growth of 6% a year. A discounted cash flow model with moderate assumptions puts its intrinsic value about 12% above the current price.
Score: 2.4 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- Profit margin improving
- Profitable 5 years in a row
- More cash than debt, or low debt to equity
- Positive free cash flow
Checks not passed
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $724M | $663M | $647M | $651M | $628M | $520M | $492M | $443M | $415M | $348M | $292M |
| Net income | $198M | $226M | $201M | $224M | $222M | $206M | $149M | $164M | $159M | $96M | $81M |
| Free cash flow | $306M | $284M | $266M | $259M | $284M | $215M | $204M | $177M | $180M | $127M | $104M |
| EPS (diluted) | $3.22 | $3.88 | $3.41 | $3.73 | $3.81 | $3.81 | $2.74 | $3.19 | $3.22 | $2.12 | $1.98 |
| Net margin | 27.3% | 34.1% | 31.1% | 34.4% | 35.4% | 39.5% | 30.2% | 37.1% | 38.3% | 27.6% | 27.8% |
| ROIC | — | — | — | — | — | — | — | — | — | — | — |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 6 analysts is $46.33, 13% above the current price; targets range from $45.00 to $48.00; the consensus rating is “Buy”; expected EPS is $3.88 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is First Merchants’s P/E ratio?
About 12.7, based on the last twelve months of diluted earnings per share (forward P/E about 9.8).
Is First Merchants stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 12% above the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does First Merchants pay a dividend?
Yes. The dividend yield is about 3.62%, and it has paid dividends for 10 years in our data.
Is First Merchants a good stock to buy?
We do not give buy or sell advice. First Merchants scores 2.4 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.