Merchants Bancorp (MBIN) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: 1.16%
• Average Volume (3M): 168.72K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.93
• Revenue Growth: 9.73%
• EPS Growth: -14.72%
• Country: US
• Employees: 663
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.93
• Shares Outstanding: 45,881,706
• 10 Day Avg. Volume: 250,898
• 30 Day Avg. Volume: 168,722
• PEG Ratio: 0.44
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.92
• Enterprise Value/Market Cap: 3.47
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 3.36
• 1Y Price Target: $41.00
• Price Target Upside: 16.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: $35.00 ▼(-0.68%Downside)

Merchants Bancorp's overall stock score is driven by strong financial performance in terms of profitability and valuation attractiveness, with a low P/E ratio and reasonable dividend yield. However, technical analysis indicates limited momentum, and cash flow management challenges pose potential risks. Positive corporate events further support the stock's appeal, reflecting a commitment to shareholder value.

Positive Factors

Earnings

Reported EPS of $1.85 beat consensus estimates of $1.27, driven by higher fees and NII.

Fee Performance

Core fees of $46M exceeded expectations due to higher gain on sale, syndication, and asset management fees.

Negative Factors

Credit Quality

Credit trends remain negative with non-performing loans rising for the fifth consecutive quarter.

Loan Growth

Loan growth was weaker, with average loans down and investment banking deposits decreasing.

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 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

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	1.17B	1.45B	522.51M	427.19M	430.31M	339.78M
Gross Profit	1.22B	666.97M	519.10M	427.19M	430.31M	339.78M
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	6.37B	18.81B	16.95B	12.62B	11.28B	9.65B
Cash, Cash Equivalents and Short-Term Investments	796.95M	568.17M	584.42M	552.97M	1.03B	449.53M
Total Debt	181.44M	4.34B	964.13M	940.39M	1.03B	1.24B
Total Liabilities	5.72B	16.56B	15.25B	11.16B	10.12B	8.83B
Stockholders Equity	653.73M	2.24B	1.70B	1.46B	1.16B	810.62M
Cash Flow
Free Cash Flow	-643.64M	-853.67M	-363.93M	966.96M	-52.86M	-878.51M
Operating Cash Flow	-719.35M	-835.28M	-356.40M	975.77M	-49.22M	-874.89M
Investing Cash Flow	-81.51M	-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: 35.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 35.24 is above the 20-day moving average (MA) of 32.44, above the 50-day MA of 32.13, and below the 200-day MA of 37.65, indicating a neutral trend. The MACD of 0.51 indicates Negative momentum. The RSI at 66.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.34 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
NIC	78 Outperform	$1.96B	15.68	11.47%	0.98%	10.78%	28.31%
CASH	76 Outperform	$1.94B	11.02	22.88%	0.24%	3.25%	11.22%
OFG	76 Outperform	$1.97B	10.49	15.46%	2.74%	7.61%	6.82%
CHCO	75 Outperform	$1.83B	15.81	16.25%	2.51%	8.80%	0.22%
FBNC	74 Outperform	$1.89B	21.57	6.03%	2.02%	-2.00%	-23.83%
MBIN	68 Neutral	$1.58B	6.35	14.81%	1.16%	9.73%	-14.72%
Sector *	67 Neutral	¥712.50B	10.83	7.42%	3.37%	7.74%	16.12%

Merchants Bancorp Corporate Events

Merchants Bancorp Announces Shareholder Meeting Decisions

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.