First Merchants Corporation cash flow to debt ratio of 28.37% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

First Merchants Corporation's free cash flow has increased 6.55% from $266.21M last year to $283.65M, signaling increasing performance

First Merchants Corporation's debt to equity ratio is 0.62, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

First Merchants Corporation's debt has increased relative to shareholder equity from 0.50 last year to 0.62 today, signaling weakened financials

First Merchants Corporation has a net debt to EBITDA ratio of 3.17x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

First Merchants Corporation earns at least as much interest as it pays. Interest obligations are fully covered.

First Merchants Corporation's profit margin has decreased (-1.10%) in the last year from 19.12% to 18.90%, signaling decreasing performance

First Merchants Corporation's short-term liabilities of $7.93G exceed its short-term assets of $1.58G, signaling financial risk

First Merchants Corporation's return on assets of 0.94% is lower than the 5.00% threshold, indicating inefficient asset utilization

First Merchants Corporation's return on equity of 8.03%, is lower than 15.00%, indicating bad performance

First Merchants Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

First Merchants Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

First Merchants Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

First Merchants Corporation has a free cash flow yield of 10.30%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

First Merchants Corporation's yearly earnings has increased 12.21% since last year from $201.40M to $226.00M, signaling increasing performance

First Merchants Corporation's yearly revenue has decreased -0.32% since last year from $1.05G to $1.05G, signaling decreasing performance

ROIC 7.49% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

First Merchants Corporation's 3-year revenue CAGR of 13.78% is positive, indicating growing revenue over the past 3 years

First Merchants Corporation had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance

First Merchants Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

First Merchants Corporation is undervalued relative to its fair value price of 55.07 based on Discounted Cash Flow model

First Merchants Corporation has an earnings yield of 7.46%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

First Merchants Corporation is overvalued relative to its fair value price of 17.42 based on EBITDA multiple model

First Merchants Corporation has an EV/EBITDA ratio of 16.96x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

First Merchants Corporation is undervalued relative to its fair value price of 100.42 based on Earnings Fair Value model

First Merchants Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

First Merchants Corporation has a price-to-book ratio of 1.00x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

First Merchants Corporation has a price-to-sales ratio of 2.62x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue