Merchants Bancorp (MBIN) AI Stock Analysis

• Market Cap: $1.66B
• Dividend Yield: 1.1%
• Average Volume (3M): 164.84K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.07
• Revenue Growth: -2.45%
• EPS Growth: -28.20%
• Country: US
• Employees: 663
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.97
• Shares Outstanding: 45,889,236
• 10 Day Avg. Volume: 166,862
• 30 Day Avg. Volume: 164,845
• 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: 2.62
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 7.33
• Enterprise Value/Ebitda: 13.56
• 1Y Price Target: $41.00
• Price Target Upside: 13.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $38.00 ▲(4.97% Upside)

Merchants Bancorp's overall stock score is driven by its strong valuation and positive technical indicators. While financial performance shows profitability, concerns about declining revenue growth and cash flow challenges weigh on the score. The stock's attractive P/E ratio and positive market momentum are significant strengths.

Positive Factors

Profitability Margins

Strong profitability margins indicate efficient operations and the ability to sustain earnings, supporting long-term financial health.

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities.

Shareholder Returns

Consistent dividend payments demonstrate financial stability and a commitment to returning value to shareholders, fostering investor confidence.

Negative Factors

Revenue Growth Decline

Declining revenue growth suggests challenges in expanding market share or product offerings, potentially impacting future earnings.

Cash Flow Challenges

Challenges in cash flow generation can limit investment capacity and operational flexibility, affecting long-term growth prospects.

Gross Profit Margin Decline

A declining gross profit margin could indicate rising costs or pricing pressures, potentially eroding profitability if not addressed.

Merchants Bancorp Business Overview & Revenue Model

Company Description

Merchants Bancorp (MBIN) is a financial holding company based in the United States, primarily engaged in the banking sector through its subsidiary, Merchants Bank of Indiana. The company operates in various segments, including commercial banking, mortgage banking, and consumer banking. It offers a diverse range of financial products and services, including commercial loans, residential mortgages, consumer banking services, and treasury management solutions, catering primarily to businesses and individuals in its markets.

How the Company Makes Money

Merchants Bancorp generates revenue primarily through interest income from its loan portfolio, which includes commercial loans and residential mortgages. The company earns interest from the loans it originates and holds, as well as from the servicing fees associated with mortgage loans. Additionally, MBIN generates non-interest income through various fees related to banking services, including transaction fees, service charges, and mortgage origination fees. The company's focus on mortgage banking allows it to capitalize on the refinancing and home buying activities in the housing market. Strategic partnerships with mortgage brokers and real estate professionals further enhance its ability to generate revenue. Lastly, the bank's investment in technology and digital banking services has helped to streamline operations and reduce costs, contributing positively to its earnings.

Merchants Bancorp Financial Statement Overview

Summary

Merchants Bancorp shows strong profitability margins with a net profit margin of 17.76% and an EBIT margin of 35.40%. However, declining revenue growth and significant challenges in cash flow generation, such as a 108.11% decline in free cash flow growth, are concerns.

Income Statement

Merchants Bancorp's income statement reflects a mixed performance. The TTM data shows a decline in revenue growth rate by 3.78%, indicating potential challenges in revenue generation. However, the company maintains a healthy net profit margin of 17.76% and an EBIT margin of 35.40%, suggesting strong operational efficiency. The gross profit margin has decreased significantly from previous years, which could be a concern if not addressed.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.30 in the TTM period, which is an improvement from previous years, indicating better leverage management. The return on equity is 11.19%, which, while lower than previous years, still reflects a reasonable return for shareholders. The equity ratio stands at 11.50%, suggesting a stable capital structure but with room for improvement in equity financing.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth rate by 108.11% in the TTM period. The operating cash flow to net income ratio is zero, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio remains positive at 1.05, suggesting that the company is still generating cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.39B	1.45B	1.19B	602.07M	461.56M	401.18M
Gross Profit	593.34M	642.69M	519.10M	422.49M	422.66M	330.70M
EBITDA	320.86M	425.66M	350.76M	293.63M	307.12M	245.25M
Net Income	246.59M	320.39M	279.23M	219.72M	227.10M	180.53M
Balance Sheet
Total Assets	19.35B	18.81B	16.95B	12.62B	11.28B	9.65B
Cash, Cash Equivalents and Short-Term Investments	1.25B	566.62M	1.70B	549.50M	1.34B	449.53M
Total Debt	2.90B	4.34B	964.13M	940.39M	1.17B	1.24B
Total Liabilities	17.13B	16.56B	15.25B	11.16B	10.12B	8.83B
Stockholders Equity	2.23B	2.24B	1.70B	1.46B	1.16B	810.62M
Cash Flow
Free Cash Flow	10.33M	-853.67M	-363.93M	966.96M	-52.86M	-878.51M
Operating Cash Flow	46.67M	-835.28M	-356.40M	975.77M	-49.22M	-874.89M
Investing Cash Flow	-251.87M	-874.27M	-3.26B	-2.86B	-474.26M	-2.53B
Financing Cash Flow	201.32M	1.60B	3.97B	1.08B	1.38B	3.08B

Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 36.2 is above the 20-day moving average (MA) of 33.84, above the 50-day MA of 32.56, and above the 200-day MA of 32.91, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 70.41 is Negative, neither overbought nor oversold. The STOCH value of 82.70 is Negative, 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
STBA	80 Outperform	$1.62B	12.24	9.35%	3.27%	-1.48%	-1.58%
NBHC	79 Outperform	$1.52B	12.73	9.06%	2.98%	-2.46%	-1.98%
TCBK	78 Outperform	$1.62B	14.02	9.20%	2.74%	0.93%	5.65%
GABC	73 Outperform	$1.55B	14.47	10.75%	2.81%	30.45%	3.13%
MBIN	72 Outperform	$1.66B	8.33	11.84%	1.10%	-2.45%	-28.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TFIN	67 Neutral	$1.53B	223.26	1.11%	―	2.04%	-64.17%

Merchants Bancorp Corporate Events

Merchants Bancorp Declares Q4 2025 Cash Dividends

On November 19, 2025, Merchants Bancorp announced that its Board of Directors declared quarterly cash dividends for the fourth quarter of 2025. The dividends, payable on January 2, 2026, include $0.10 per share for common stock and varying amounts for preferred shares, reflecting the company’s ongoing commitment to returning value to its shareholders.