Merchants Bancorp (MBIN) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: 1.14%
• Average Volume (3M): 157.50K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.93
• Revenue Growth: 9.73%
• EPS Growth: -14.72%
• Country: US
• Employees: 663
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.93
• Shares Outstanding: 45,881,706
• 10 Day Avg. Volume: 118,042
• 30 Day Avg. Volume: 157,505
• PEG Ratio: -0.30
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.91
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 0.99
• Enterprise Value/Ebitda: 1.18
• 1Y Price Target: $42.00
• Price Target Upside: 29.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $35.00 ▲(7.73%Upside)

Merchants Bancorp's strong valuation and positive corporate events are offset by technical indicators suggesting potential bearish trends. Financial performance is solid but hindered by cash flow challenges, impacting overall attractiveness.

Positive Factors

Earnings

Reported EPS of $1.85 beat MS/consensus estimates of $1.34/$1.27 on higher fees/NII and lower provision partially offset by higher expenses.

Financial Performance

Core fees of $46M beat consensus estimates of $27M driven by higher gain on sale/syndication & asset management fees.

Negative Factors

Credit Quality

Credit trends were still negative with NPLs up for 5th straight quarter.

Loan Growth

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

Merchants Bancorp Business Overview & Revenue Model

Company Description

Merchants 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 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 revenue growth and stable profitability with a high net profit margin. The balance sheet is robust, featuring no debt and rising equity, though the return on equity has decreased. However, significant cash flow challenges are present, with negative operating and free cash flows suggesting liquidity risks. Improvements in cash flow management are necessary for sustained growth.

Income Statement

Merchants Bancorp has demonstrated strong revenue growth, with a significant increase in total revenue from 2019 to 2024. The gross profit margin remains high due to the absence of cost of goods sold, typical for banks. Net profit margin has slightly improved from 46.7% in 2019 to 24.6% in 2024, indicating stable profitability. The EBIT margin is consistently high, reflecting efficient operations. However, EBITDA data is missing for 2024, limiting some analysis.

Balance Sheet

The company's balance sheet shows strong equity growth with stockholders' equity increasing from $653.7 million in 2019 to $2.24 billion in 2024. Debt-to-equity ratio has improved significantly with total debt eliminated by 2024, showcasing strong financial management. The equity ratio has increased, indicating robust capitalization. However, the return on equity has decreased from 11.8% in 2019 to 14.3% in 2024, suggesting potential efficiency issues in using equity to generate profits.

Cash Flow

Merchants Bancorp's cash flow statement reveals challenges, with negative operating cash flow in recent years. Free cash flow remains negative, indicating potential liquidity issues. The operating cash flow to net income ratio and free cash flow to net income ratio are concerning, reflecting issues in converting income into cash. Despite improvements in financing activities, the overall cash flow position suggests caution.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.30B	522.51M	427.19M	430.31M	339.78M
	Gross Profit
666.97M	522.51M	427.19M	430.31M	339.78M
	EBIT
1.29B	347.91M	294.61M	307.62M	249.16M
	EBITDA
0.00	0.00	293.63M	307.12M	245.25M
	Net Income Common Stockholders
320.39M	279.23M	219.72M	227.10M	180.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.46B	584.42M	345.51M	1.34B	449.53M
	Total Assets
18.81B	16.95B	12.62B	11.28B	9.65B
	Total Debt
4.34B	964.13M	960.39M	1.03B	1.35B
	Net Debt
3.86B	379.70M	734.23M	1.34M	1.17B
	Total Liabilities
16.56B	15.25B	11.16B	10.12B	1.37B
	Stockholders Equity
2.24B	1.70B	1.46B	1.16B	810.62M
Cash Flow		Free Cash Flow
-853.67M	-363.93M	966.96M	-52.86M	-878.51M
	Operating Cash Flow
-835.28M	-356.40M	975.77M	-49.22M	-874.89M
	Investing Cash Flow
-874.27M	-3.26B	-2.86B	-474.26M	-2.53B
	Financing Cash Flow
1.60B	3.97B	1.08B	1.38B	3.08B

Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.49
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 32.49 is above the 20-day moving average (MA) of 32.32, below the 50-day MA of 32.69, and below the 200-day MA of 38.73, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 51.19 is Neutral, neither overbought nor oversold. The STOCH value of 43.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MBIN.

Merchants Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFG	79 Outperform	$1.88B	10.01	15.46%	2.51%	7.84%	6.82%
NIC	78 Outperform	$1.78B	14.23	11.47%	0.95%	10.78%	28.31%
CASH	75 Outperform	$1.86B	10.51	22.88%	0.26%	3.25%	11.22%
CHCO	70 Outperform	$1.71B	14.79	16.25%	2.62%	8.80%	0.22%
FBNC	69 Neutral	$1.72B	19.71	6.03%	2.11%	-2.00%	-23.84%
MBIN	68 Neutral	$1.49B	5.97	14.81%	1.14%	9.73%	-14.72%
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%

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.

Merchants Bancorp Appoints New Chief Accounting Officer

On March 17, 2025, Merchants Bancorp appointed Darin Thomas as its Chief Accounting Officer, taking over the principal accounting officer responsibilities from the current CFO, Sean A. Sievers. Mr. Thomas, previously a Controller at Barclays’ United States Consumer Bank, brings extensive experience in financial processes, which could enhance the company’s financial management and reporting capabilities.