Merchants Bancorp (MBIN) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: 1.21%
• Average Volume (3M): 154.41K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 1.04
• Revenue Growth: 3.49%
• EPS Growth: -30.76%
• Country: US
• Employees: 663
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.60
• Shares Outstanding: 45,885,460
• 10 Day Avg. Volume: 129,211
• 30 Day Avg. Volume: 154,410
• 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: 4.11
• Enterprise Value/Revenue: 4.34
• Enterprise Value/Gross Profit: 10.22
• Enterprise Value/Ebitda: 18.03
• 1Y Price Target: $40.00
• Price Target Upside: 24.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: $34.00 ▲(5.69% Upside)

Merchants Bancorp's overall score is driven by strong profitability and an attractive valuation, despite challenges with declining revenue and negative cash flows. The technical analysis indicates a lack of momentum, which tempers the stock's potential upside. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Profitability

Strong profitability margins indicate efficient operations and the ability to generate profits, which supports long-term financial health and shareholder value.

Return on Equity

A solid return on equity reflects effective use of shareholders' investments to generate earnings, indicating strong management performance and potential for sustainable growth.

Cash Flow Efficiency

A free cash flow to net income ratio above 1 suggests the company generates sufficient cash relative to its net income, ensuring liquidity and financial flexibility for future investments.

Negative Factors

Revenue Decline

A substantial decline in revenue can indicate weakening demand or competitive pressures, potentially impacting long-term growth prospects and market position.

High Debt Levels

Elevated debt levels increase financial risk, especially in rising interest rate environments, potentially constraining the company's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows from operations suggest challenges in generating cash from core activities, which could affect the company's ability to sustain operations and fund future growth.

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 with a net profit margin of 18.1% and an EBIT margin of 23.9%. However, the company faces challenges with a significant revenue decline of -34.9% and negative cash flows. High leverage with a debt-to-equity ratio of 1.83 adds risk, despite a solid return on equity of 11.9%.

Income Statement

Merchants Bancorp's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is negative at -34.9%, indicating a significant decline in revenue. However, the company maintains a healthy net profit margin of 18.1% and an EBIT margin of 23.9%, which suggests strong operational efficiency despite the revenue drop. The gross profit margin has decreased slightly from previous years, reflecting some pressure on profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.83, which indicates significant leverage and potential risk if interest rates rise. However, the return on equity remains solid at 11.9%, showcasing effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

Cash flow analysis highlights challenges, with negative operating and free cash flows in the TTM period. Despite this, the free cash flow to net income ratio is above 1, indicating that the company is generating sufficient cash relative to its net income. The operating cash flow to net income ratio is negative, pointing to potential issues in cash generation from core operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.45B	1.19B	602.07M	461.56M	401.18M
Gross Profit	594.32M	642.69M	519.10M	422.49M	422.66M	330.70M
EBITDA	336.87M	425.66M	350.76M	293.63M	307.12M	245.25M
Net Income	253.16M	320.39M	279.23M	219.72M	227.10M	180.53M
Balance Sheet
Total Assets	19.14B	18.81B	16.95B	12.62B	11.28B	9.65B
Cash, Cash Equivalents and Short-Term Investments	1.32B	568.17M	1.70B	549.50M	1.34B	449.53M
Total Debt	3.83B	4.34B	964.13M	940.39M	1.17B	1.24B
Total Liabilities	16.96B	16.56B	15.25B	11.16B	10.12B	8.83B
Stockholders Equity	2.18B	2.24B	1.70B	1.46B	1.16B	810.62M
Cash Flow
Free Cash Flow	-497.97M	-853.67M	-363.93M	966.96M	-52.86M	-878.51M
Operating Cash Flow	-475.74M	-835.28M	-356.40M	975.77M	-49.22M	-874.89M
Investing Cash Flow	110.67M	-874.27M	-3.26B	-2.86B	-474.26M	-2.53B
Financing Cash Flow	471.35M	1.60B	3.97B	1.08B	1.38B	3.08B

Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.17
• 50DMA: Positive
• 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 Positive. The current price of 32.17 is above the 20-day moving average (MA) of 32.04, above the 50-day MA of 31.95, and below the 200-day MA of 34.66, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 51.16 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
TCBK	76 Outperform	$1.43B	13.01	9.17%	3.07%	1.15%	-0.39%
STBA	74 Outperform	$1.43B	10.99	9.47%	3.64%	-0.57%	-3.92%
NBHC	72 Outperform	$1.45B	12.35	9.15%	3.08%	0.60%	-6.31%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TFIN	67 Neutral	$1.16B	111.82	1.52%	―	2.02%	-60.54%
MBIN	63 Neutral	$1.48B	7.08	12.43%	1.21%	3.49%	-30.76%
GABC	61 Neutral	$1.47B	14.87	9.80%	2.91%	22.42%	-5.59%

Merchants Bancorp Corporate Events

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.