Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

First Merchants Corporation (FRME)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$108.46 - $353.20$175.88
Multi-Stage$71.30 - $77.88$74.53
Blended Fair Value$125.20
Current Price$37.70
Upside232.10%
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 Rate8.63%8.63%8.63%
Growth Rate5.50%6.50%7.50%
Fair Value$108.46$175.88$353.20
Upside / Downside187.70%366.52%836.88%

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 Rate8.63%8.63%8.63%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)104.93105.92106.92
Year 2 PV (M)125.93128.33130.75
Year 3 PV (M)145.63149.82154.07
Year 4 PV (M)164.10170.41176.90
Year 5 PV (M)181.37190.13199.23
PV of Terminal Value (M)3,408.033,572.643,743.55
Equity Value (M)4,130.004,317.254,511.42
Shares Outstanding (M)57.9357.9357.93
Fair Value$71.30$74.53$77.88
Upside / Downside89.11%97.69%106.58%

High-Yield Dividend Screener

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