Definitive Analysis | Institutional-Grade Financial Research
Definitive Analysis
Get Full Access
See Pricing Start Free Trial

First Merchants Corporation (FRME)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$94.94 - $253.45$145.46
Multi-Stage$65.71 - $71.74$68.67
Blended Fair Value$107.06
Current Price$37.70
Upside183.99%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS9.74%22.54%1.411.381.261.060.980.890.720.550.380.27
YoY Growth--1.95%10.05%18.81%8.29%10.27%23.08%30.92%43.31%41.84%46.38%
Dividend Yield--3.48%4.05%3.81%2.54%2.10%3.34%1.91%1.32%0.97%1.15%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)233.29
(-) Cash Dividends Paid (M)82.57
(=) Cash Retained (M)150.72
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)46.6629.1617.50
Cash Retained (M)150.72150.72150.72
(-) Cash Required (M)-46.66-29.16-17.50
(=) Excess Retained (M)104.06121.56133.22
(/) Shares Outstanding (M)57.9357.9357.93
(=) Excess Retained per Share1.802.102.30
LTM Dividend per Share1.431.431.43
(+) Excess Retained per Share1.802.102.30
(=) Adjusted Dividend3.223.523.73
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$94.94$145.46$253.45
Upside / Downside151.84%285.83%572.29%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)233.29248.45264.60281.80300.11319.62329.21
Payout Ratio35.39%46.32%57.24%68.16%79.08%90.00%92.50%
Projected Dividends (M)82.57115.07151.45192.07237.33287.66304.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)104.50105.49106.48
Year 2 PV (M)124.90127.28129.68
Year 3 PV (M)143.85147.98152.19
Year 4 PV (M)161.43167.64174.02
Year 5 PV (M)177.69186.27195.18
PV of Terminal Value (M)3,093.853,243.283,398.43
Equity Value (M)3,806.223,977.954,156.00
Shares Outstanding (M)57.9357.9357.93
Fair Value$65.71$68.67$71.74
Upside / Downside74.29%82.15%90.30%

High-Yield Dividend Screener

« Prev Page 6 of 30 Next »
Ticker Company Dividend Yield % Dividend Per Share Payout Ratio %
FFord Motor Company5.53%$0.7463.45%
LCNBLCNB Corp.5.48%$0.8953.03%
PPBIPacific Premier Bancorp, Inc.5.48%$1.3492.42%
VGRVector Group Ltd.5.48%$0.8263.35%
DLXDeluxe Corporation5.43%$1.2166.43%
BAFNBayFirst Financial Corp.5.41%$0.4321.50%
IPGThe Interpublic Group of Companies, Inc.5.41%$1.3388.72%
PEBOPeoples Bancorp Inc.5.39%$1.6256.40%
OKEONEOK, Inc.5.38%$4.0075.29%
BUSEFirst Busey Corporation5.37%$1.2875.92%
OASOasis Petroleum Inc.5.37%$5.8765.40%
EIXEdison International5.36%$3.2639.45%
0R1X.LGeneral Mills, Inc.5.35%$2.4545.62%
FIBKFirst Interstate BancSystem, Inc.5.35%$1.8979.54%
FNCBFNCB Bancorp, Inc.5.33%$0.3651.41%
DHILDiamond Hill Investment Group, Inc.5.31%$9.0552.46%
SLRCSLR Investment Corp.5.31%$0.8249.67%
EPSNEpsilon Energy Ltd.5.30%$0.2491.92%
UVVUniversal Corporation5.28%$2.7862.64%
FLICThe First of Long Island Corporation5.27%$0.6386.64%
AUBAtlantic Union Bankshares Corporation5.22%$1.8576.04%
SAFESafehold Inc.5.20%$0.7145.17%
GAB-PGThe Gabelli Equity Trust Inc. PFD-G5.19%$1.0881.70%
HPQHP Inc.5.19%$1.1543.02%
SOISolaris Oilfield Infrastructure, Inc.5.18%$0.7025.64%
MBINOMerchants Bancorp5.17%$1.2924.09%
0JXQ.LMain Street Capital Corporation5.13%$3.1752.63%
EMNEastman Chemical Company5.12%$3.2954.36%
EMBCEmbecta Corp.5.10%$0.5936.96%
AMAntero Midstream Corporation5.09%$0.9193.18%
CZNCCitizens & Northern Corporation5.09%$1.0257.64%
FMNBFarmers National Banc Corp.5.09%$0.6846.83%
0J66.LHost Hotels & Resorts, Inc.5.08%$0.9084.69%
GLPIGaming and Leisure Properties, Inc.5.07%$2.2582.42%
PFISPeoples Financial Services Corp.5.07%$2.4446.22%
TBBAT&T Inc. 5.35% GLB NTS 665.07%$1.1436.88%
KFRCKforce Inc.5.02%$1.5768.10%
TTPTortoise Pipeline & Energy Fund, Inc.5.02%$2.3920.11%
STAR-PGiStar Inc.4.94%$1.2434.23%
PFSProvident Financial Services, Inc.4.93%$0.9761.13%
UBFOUnited Security Bancshares4.92%$0.4873.45%
DDTDillards Capital Trust I CAP SECS 7.5%4.90%$1.293.46%
SGUStar Group, L.P.4.89%$0.5836.90%
AGRAvangrid, Inc.4.88%$1.7660.70%
KMBKimberly-Clark Corporation4.88%$4.9583.80%
OCFCOceanFirst Financial Corp.4.86%$0.8761.98%
0I0J.LThe Clorox Company4.85%$4.8976.11%
FNLCThe First Bancorp, Inc.4.83%$1.2845.40%
RILYZB. Riley Financial, Inc. 5.25% Senior Notes due 20284.83%$0.5856.91%
BSETBassett Furniture Industries, Incorporated4.82%$0.8089.43%