Merchants Bancorp (MBIN) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: 1.25%
• Average Volume (3M): 164.84K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.14
• Revenue Growth: -3.01%
• 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: 3.43
• Enterprise Value/Revenue: 3.51
• Enterprise Value/Gross Profit: 8.25
• Enterprise Value/Ebitda: 14.52
• 1Y Price Target: $40.50
• Price Target Upside: 29.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: $34.00 ▲(9.01% Upside)

Merchants Bancorp's overall stock score is driven by strong profitability and an attractive valuation. However, the stock faces challenges with declining revenue, negative cash flows, and high leverage. The technical indicators suggest a bearish trend, which also impacts the overall score.

Positive Factors

Profitability

Strong profitability margins indicate efficient operations and the ability to generate significant earnings from revenue, supporting long-term sustainability.

Capital Efficiency

An increase in tangible book value per share reflects effective capital management and enhances shareholder value, indicating robust financial health.

Risk Management

Effective risk management through credit risk transfers strengthens the company's financial stability and ability to withstand economic fluctuations.

Negative Factors

Revenue Decline

A significant revenue decline challenges the company's ability to maintain growth and could impact long-term financial performance if not addressed.

High Leverage

High leverage can limit financial flexibility and increase vulnerability to interest rate changes, potentially impacting long-term stability.

Negative Cash Flows

Negative cash flows indicate potential issues in generating cash from operations, which could constrain investment and growth opportunities.

Merchants Bancorp Business Overview & Revenue Model

Company Description

Merchants Bancorp (MBIN) is a financial institution based in the United States that operates primarily through its banking subsidiary, Merchants Bank of Indiana. The company offers a range of banking and financial services, including commercial and residential mortgage lending, retail banking, and asset management. Merchants Bancorp focuses on serving the needs of small to mid-sized businesses and individual consumers, providing tailored solutions in the competitive banking landscape.

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 healthy 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. The high debt-to-equity ratio of 1.83 presents a risk, though the return on equity remains solid at 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	337.64M	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: Negative
• Last Price: 31.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBIN, the sentiment is Negative. The current price of 31.19 is below the 20-day moving average (MA) of 31.90, below the 50-day MA of 32.09, and below the 200-day MA of 34.25, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 20.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MBIN.

Merchants Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STBA	―	$1.40B	10.58	9.35%	3.71%	-1.47%	―
GABC	―	$1.44B	13.49	10.75%	2.91%	30.49%	3.13%
NBHC	―	$1.35B	11.28	9.06%	3.19%	-2.46%	-1.98%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TCBK	―	$1.44B	12.47	9.20%	3.05%	0.93%	5.65%
TFIN	―	$1.29B	191.96	1.11%	―	2.04%	-64.17%
MBIN	―	$1.43B	7.17	11.84%	1.25%	-3.01%	-28.20%

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.

Merchants Bancorp Reports Q2 2025 Earnings Decline

Merchants Bancorp is a diversified bank holding company based in Carmel, Indiana, primarily operating in the multi-family mortgage banking, mortgage warehousing, and traditional banking sectors. The company is known for its focus on multi-family housing and healthcare facility financing, as well as its mortgage warehouse financing services.