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Merchants Bancorp (MBIN)
NASDAQ:MBIN
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Merchants Bancorp (MBIN) AI Stock Analysis

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MBIN

Merchants Bancorp

(NASDAQ:MBIN)

Rating:76Outperform
Price Target:
$40.00
â–²(14.81%Upside)
Merchants Bancorp's strong valuation and positive technical indicators are key factors driving the score, indicating a potentially undervalued stock with positive momentum. Financial performance is solid but hindered by cash flow challenges, while corporate events support shareholder value.
Positive Factors
Earnings
Reported EPS of $1.85 beat analyst estimates of $1.34 and consensus estimates of $1.27, driven by higher fees and net interest income.
Fee Performance
Core fees of $46M surpassed consensus estimates of $27M, boosted by higher gain on sale, syndication, and asset management fees.
Negative Factors
Credit Quality
Credit trends remained negative with non-performing loans increasing for the fifth consecutive quarter.
Interest Rates
Elevated interest rates have caused delays in borrowers converting to permanent loans, impacting the financial outlook.
Loan Growth
Loan growth was weaker as average loans decreased and investment banking deposits declined.

Merchants Bancorp (MBIN) vs. SPDR S&P 500 ETF (SPY)

Merchants Bancorp Business Overview & Revenue Model

Company DescriptionMerchants Bancorp (MBIN) is a diversified bank holding company headquartered in Carmel, Indiana. It operates primarily through its subsidiaries, Merchants Bank of Indiana and Merchants Capital Corp. The company is engaged in various sectors of the financial services industry, focusing on retail and commercial banking, as well as mortgage banking. Its core offerings include traditional banking products like savings and checking accounts, loans, and credit services, alongside more specialized services such as multifamily housing finance and mortgage warehousing.
How the Company Makes MoneyMerchants Bancorp generates revenue through multiple channels. A significant portion of its income comes from interest earned on loans and securities, which is a fundamental aspect of its banking operations. Additionally, the company earns fees from its mortgage banking services, including loan origination, servicing fees, and gains on sales of loans. Merchants Bancorp also benefits from its involvement in multifamily housing finance, providing capital for developing and acquiring housing projects, which provides both interest and non-interest income. Furthermore, the company leverages strategic partnerships with real estate developers and financial institutions to enhance its service offerings and expand its customer base, contributing to its overall earnings.

Merchants Bancorp Financial Statement Overview

Summary
Merchants Bancorp demonstrates strong profitability and effective cost management, with high margins. However, challenges in cash flow management and moderate leverage on the balance sheet pose potential risks.
Income Statement
75
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.17B1.45B522.51M427.19M430.31M339.78M
Gross Profit1.22B666.97M519.10M427.19M430.31M339.78M
EBITDA387.91M425.66M350.76M293.63M307.12M245.25M
Net Income291.57M320.39M279.23M219.72M227.10M180.53M
Balance Sheet
Total Assets6.37B18.81B16.95B12.62B11.28B9.65B
Cash, Cash Equivalents and Short-Term Investments796.95M568.17M584.42M552.97M1.03B449.53M
Total Debt181.44M4.34B964.13M940.39M1.03B1.24B
Total Liabilities5.72B16.56B15.25B11.16B10.12B8.83B
Stockholders Equity653.73M2.24B1.70B1.46B1.16B810.62M
Cash Flow
Free Cash Flow-643.64M-853.67M-363.93M966.96M-52.86M-878.51M
Operating Cash Flow-719.35M-835.28M-356.40M975.77M-49.22M-874.89M
Investing Cash Flow-81.51M-874.27M-3.26B-2.86B-474.26M-2.53B
Financing Cash Flow496.17M1.60B3.97B1.08B1.38B3.08B

Merchants Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price34.84
Price Trends
50DMA
33.08
Positive
100DMA
34.06
Positive
200DMA
37.03
Negative
Market Momentum
MACD
0.57
Positive
RSI
54.97
Neutral
STOCH
61.11
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 34.84 is above the 20-day moving average (MA) of 34.55, above the 50-day MA of 33.08, and below the 200-day MA of 37.03, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 54.97 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MBIN.

Merchants Bancorp Risk Analysis

Merchants Bancorp disclosed 42 risk factors in its most recent earnings report. Merchants Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Merchants Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$2.00B10.4915.20%2.47%4.15%4.39%
79
Outperform
$2.07B15.7511.89%0.84%8.38%26.81%
76
Outperform
$1.86B15.5216.70%2.45%8.28%6.96%
76
Outperform
$1.92B10.9022.88%0.25%3.25%11.22%
76
Outperform
$1.60B6.4114.81%1.09%9.73%-14.72%
74
Outperform
$1.94B19.996.55%1.90%-2.03%-14.86%
68
Neutral
$16.93B11.679.79%3.89%11.83%-7.56%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MBIN
Merchants Bancorp
35.52
-15.19
-29.95%
CHCO
City Holding Company
133.58
14.38
12.06%
FBNC
First Bancorp
46.90
3.67
8.49%
CASH
Meta Financial Group
80.70
12.68
18.64%
OFG
OFG Bancorp
44.52
-0.44
-0.98%
NIC
Nicolet Bankshares
137.31
36.34
35.99%

Merchants Bancorp Corporate Events

Executive/Board ChangesShareholder MeetingsDividends
Merchants Bancorp Announces Shareholder Meeting Decisions
Positive
May 15, 2025

On May 15, 2025, Merchants Bancorp held its Annual Meeting of Shareholders where key decisions were made including the election of eleven directors to the board, a non-binding advisory vote on executive compensation, and the ratification of Forvis Mazars, LLP as the independent accounting firm for 2025. Additionally, the company announced quarterly cash dividends for its common and preferred stock, payable on July 1, 2025, to shareholders of record on June 13, 2025, reflecting a continued commitment to returning value to its shareholders.

The most recent analyst rating on (MBIN) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Merchants Bancorp stock, see the MBIN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025