Merchants Bancorp (MBIN) AI Stock Analysis

• Market Cap: $1.51B
• Dividend Yield: 1.16%
• Average Volume (3M): 205.72K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.05
• Revenue Growth: 3.49%
• EPS Growth: -30.76%
• Country: US
• Employees: 663
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.60
• Shares Outstanding: 45,885,460
• 10 Day Avg. Volume: 238,075
• 30 Day Avg. Volume: 205,718
• PEG Ratio: 0.44
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 1.13
• P/FCF Ratio: -1.92
• Enterprise Value/Market Cap: 4.02
• Enterprise Value/Revenue: 4.33
• Enterprise Value/Gross Profit: 9.83
• Enterprise Value/Ebitda: 15.65
• 1Y Price Target: $38.33
• Price Target Upside: 16.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: $36.00 ▲(9.69% Upside)

Merchants Bancorp's strong valuation and profitability are the most significant strengths, supported by a stable financial position. However, challenges in cash flow management and neutral technical indicators slightly temper the overall outlook.

Positive Factors

Loan Quality

Loans classified as special mention declined, indicating fewer migrations to criticized status.

Negative Factors

Earnings

Operating EPS missed expectations due to higher loan losses, impacting financial performance.

Loan Loss Provisions

Increased loan loss provisions are a result of a rise in the non-performing loan ratio.

Mortgage Fraud

Significant charge-offs were recorded due to mortgage fraud, causing investor concern.

Merchants Bancorp Business Overview & Revenue Model

Company Description

Merchants Bancorp operates as the diversified bank holding company in the United States. The company operates through Multi-family Mortgage Banking, Mortgage Warehousing, and Banking segments. The Multi-family Mortgage Banking segment originates and services government sponsored mortgages for multi-family and healthcare facilities. This segment also offers customized loan products for independent living, assisted living, memory care, and skilled nursing projects; and operates as a syndicator of low-income housing tax credit and debt funds. The Mortgage Warehousing segment funds agency eligible residential loans, including origination, purchase, and sale in the secondary market, as well as commercial loans to non-depository financial institutions. The Banking segment offers a range of financial products and services to consumers and businesses, such as various types of deposit products, as well as multi-family construction and bridge, commercial real estate, commercial and industrial, agricultural, residential mortgage, and consumer loan products. This segment also provides single-family mortgage lending; construction, bridge, and lot financing; first-lien home equity lines of credit; and small business administration lending products and services. Merchants Bancorp was founded in 1990 and is headquartered in Carmel, Indiana.

How the Company Makes Money

Merchants Bancorp generates revenue primarily through interest income derived from its lending activities, which includes commercial and residential mortgages. The company earns interest from loans extended to borrowers, and it manages a portfolio of loans that contribute to its earnings. Additionally, MBIN generates non-interest income through various fees associated with its banking services, such as account maintenance fees, transaction fees, and wealth management services. The company may also have partnerships with real estate developers or other financial institutions that can enhance its service offerings and revenue potential. Factors contributing to its earnings include interest rate spreads, loan origination volume, and the performance of its mortgage banking operations.

Merchants Bancorp Financial Statement Overview

Summary

Merchants Bancorp shows strong profitability with robust margins in the TTM period. However, challenges in cash flow management pose a liquidity risk. The balance sheet is moderately leveraged, providing stability but also potential risk under adverse conditions.

Income Statement

Merchants Bancorp has demonstrated strong revenue growth, particularly noticeable over the past year. The TTM (Trailing-Twelve-Months) shows a robust EBIT margin of 33.33% and a net profit margin of 24.89%, indicating effective cost management and profitability. Despite a decline in total revenue in the recent year, the company maintains a healthy gross profit margin of 104.15%. However, declining revenue may pose a risk if not addressed.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 1.85, which suggests moderate leverage. The return on equity (ROE) at 13.49% is competitive, highlighting efficient use of equity to generate profits. The equity ratio of 11.49% is relatively low, indicating a higher reliance on debt financing, which could increase financial risk if market conditions deteriorate.

Cash Flow

Cash flow management is a concern with negative free cash flow growth and operating cash flow. The free cash flow to net income ratio is negative, reflecting challenges in converting profits into cash flow. The operating cash flow to net income ratio is also negative, indicating potential issues in operational efficiency or cash collection.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.45B	1.19B	602.07M	461.56M	401.18M
Gross Profit	617.80M	642.69M	519.10M	422.49M	422.66M	330.70M
EBITDA	387.91M	425.66M	350.76M	293.63M	307.12M	245.25M
Net Income	291.57M	320.39M	279.23M	219.72M	227.10M	180.53M
Balance Sheet
Total Assets	18.80B	18.81B	16.95B	12.62B	11.28B	9.65B
Cash, Cash Equivalents and Short-Term Investments	1.23B	568.17M	1.70B	552.97M	1.34B	449.53M
Total Debt	4.00B	4.34B	964.13M	940.39M	1.17B	1.24B
Total Liabilities	16.64B	16.56B	15.25B	11.16B	10.12B	8.83B
Stockholders Equity	2.16B	2.24B	1.70B	1.46B	1.16B	810.62M
Cash Flow
Free Cash Flow	-326.41M	-853.67M	-363.93M	966.96M	-52.86M	-878.51M
Operating Cash Flow	-303.47M	-835.28M	-356.40M	975.77M	-49.22M	-874.89M
Investing Cash Flow	-180.16M	-874.27M	-3.26B	-2.86B	-474.26M	-2.53B
Financing Cash Flow	496.17M	1.60B	3.97B	1.08B	1.38B	3.08B

Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBIN, the sentiment is Positive. The current price of 32.82 is above the 20-day moving average (MA) of 32.37, below the 50-day MA of 33.11, and below the 200-day MA of 35.50, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 52.42 is Neutral, neither overbought nor oversold. The STOCH value of 53.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MBIN.

Merchants Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFG	78 Outperform	$2.02B	10.68	15.20%	2.46%	4.15%	4.39%
NIC	78 Outperform	$2.04B	15.79	11.89%	0.88%	8.38%	26.81%
CHCO	74 Outperform	$1.89B	15.69	16.70%	2.46%	8.28%	6.96%
FBNC	74 Outperform	$2.30B	23.26	6.53%	1.60%	-2.04%	-14.82%
CASH	72 Outperform	$1.78B	10.46	22.60%	0.26%	4.96%	13.23%
MBIN	70 Outperform	$1.51B	7.25	12.43%	1.16%	3.49%	-30.76%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%

Merchants Bancorp Corporate Events

Merchants Bancorp Declares Q3 2025 Cash Dividends

On August 21, 2025, Merchants Bancorp announced that its Board of Directors declared quarterly cash dividends for the third quarter of 2025. The dividends, payable on October 1, 2025, include $0.10 per share for common stock and varying amounts for Series C, D, and E preferred stocks. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and reinforces its stable financial position.