Merchants Bancorp (MBIN) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: 1.25%
• Average Volume (3M): 164.84K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.14
• 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: 45,885,460
• 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: 3.39
• Enterprise Value/Revenue: 3.53
• Enterprise Value/Gross Profit: 8.26
• Enterprise Value/Ebitda: 15.28
• 1Y Price Target: $41.00
• Price Target Upside: 24.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $34.00 ▲(3.60% Upside)

Merchants Bancorp's overall stock score is driven by its strong profitability margins and attractive valuation, with a low P/E ratio suggesting potential undervaluation. However, the mixed financial performance, particularly the challenges in revenue growth and cash flow generation, along with neutral technical indicators, weigh on the score.

Positive Factors

Profitability Margins

Strong profitability margins indicate efficient operations and the ability to generate significant income relative to expenses, supporting long-term financial health.

Leverage Management

Improved leverage management suggests better financial discipline, reducing risk and enhancing the company's ability to invest in growth opportunities.

Cash Generation

Positive cash generation relative to net income indicates the company's ability to convert profits into cash, essential for sustaining operations and funding growth.

Negative Factors

Revenue Growth Challenges

Declining revenue growth may signal difficulties in market expansion or competitive pressures, potentially impacting long-term earnings potential.

Cash Flow Issues

A sharp decline in free cash flow growth indicates potential liquidity challenges, which could limit the company's ability to invest in future growth or manage debt.

Gross Profit Margin Decline

A declining gross profit margin suggests increased costs or pricing pressures, which could erode profitability if not addressed, impacting long-term financial performance.

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 margins with a healthy net profit margin of 17.76% and EBIT margin of 35.40%. However, the decline in revenue growth and significant challenges in cash flow generation, such as a 108.11% decline in free cash flow growth, are concerning. Improved leverage management is a positive, but overall financial performance is mixed.

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	40.40M	-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: 32.82
• 50DMA: Positive
• 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 31.63, above the 50-day MA of 31.86, and below the 200-day MA of 33.44, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.38 is Neutral, neither overbought nor oversold. The STOCH value of 76.01 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
STBA	79 Outperform	$1.43B	10.74	9.35%	3.50%	-1.48%	-1.58%
TCBK	79 Outperform	$1.45B	12.52	9.20%	2.76%	0.93%	5.65%
NBHC	71 Outperform	$1.36B	11.35	9.06%	3.22%	-2.46%	-1.98%
GABC	68 Neutral	$1.47B	13.68	10.75%	2.92%	30.45%	3.13%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MBIN	63 Neutral	$1.44B	7.24	11.84%	1.25%	-2.45%	-28.20%
TFIN	57 Neutral	$1.29B	191.08	1.11%	―	2.04%	-64.17%

Merchants Bancorp Corporate Events

Merchants Bancorp Reports Mixed Q3 2025 Earnings

Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana, operating in the financial services sector with a focus on multi-family mortgage banking, mortgage warehousing, and traditional banking services. The company reported its financial results for the third quarter of 2025, highlighting a net income of $54.7 million, which represents a decrease compared to the same period in 2024 but an increase from the second quarter of 2025. The earnings per share also reflected similar trends, with a decrease year-over-year but a significant increase quarter-over-quarter. The company’s financial performance was supported by a decrease in credit loss provisions and an increase in gains from loan sales. Total assets reached a record high of $19.4 billion, with core deposits showing substantial growth. Despite a decline in net interest income compared to the previous year, Merchants Bancorp’s strategic initiatives, including credit risk transfers and core deposit growth, have positioned the company for sustainable performance. Looking ahead, the management remains confident in its ability to capitalize on market opportunities and deliver long-term shareholder value.

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.

The most recent analyst rating on (MBIN) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Merchants Bancorp stock, see the MBIN Stock Forecast page.