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FRMEP

NEUTRAL
$26.15 Live
First Merchants Corporation · NASDAQ
$25.0 52W Range $27.09

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AI Analysis

AI-powered fundamental assessment

Confidence
85%
FRMEP presents a classic deep-value profile with a stable Piotroski F-Score of 4/9 and a significant discount to its Graham Number ($60.62) and Book Value (P/B 0.61). While the valuation metrics are highly attractive with a P/E of 6.86, these are offset by negative year-over-year earnings growth (-10.90%) and a completely bearish technical trend (0/100). The stock is currently trading very close to its growth-based intrinsic value of $26.67, suggesting that the market has priced in the current growth stagnation. The high dividend yield of 7.17% provides a floor, but the lack of momentum and declining fundamentals prevent a bullish rating.

Key Strengths

Deeply undervalued relative to book value (P/B 0.61)
Very low P/E ratio (6.86) compared to sector averages
High dividend yield of 7.17%
Stable financial health as indicated by Piotroski F-Score (4/9)
Strong long-term price appreciation (5Y Change +39.6%)

Key Risks

Negative YoY earnings growth (-10.90%)
Negative YoY revenue growth (-4.60%)
Bearish technical trend (0/100 score)
Weak insider sentiment (40/100)
Regional banking sector sensitivity to interest rate volatility
AI Fair Value Estimate
Based on comprehensive analysis
$28.5
+9.0% above current price

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