Stock fact sheet · data as of
First Merchants Corporation (FRMEP): fair value, margin of safety and Wheel Score
Financial Services · Banks - Regional · United States · Value
Is FRMEP undervalued?
At 25.22 (close of 16 Oct 2026), FRMEP trades 57% below the GLS average fair value of 59.08. That average comes from 9 models run on the latest filings, and 6 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns First Merchants Corporation the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 9 models disagree widely: EPV gives 21.09 while Payback Time gives 116.80. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files FRMEP under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for FRMEP
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 46.81 | +86% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 53.69 | +113% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 101.30 | +302% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 43.73 | +73% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 22.15 | -12% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 104.66 | +315% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 116.80 | +363% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 21.48 | -15% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 21.09 | -16% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -152.91 | -706% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - FRMEP passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 7.0 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 6.5%, ROE 9.2%, ROA 1.2% - with debt at 0.41 times equity and a free-cash-flow yield of 12.7%.
The dividend yield is 3.70% at a payout ratio of 48%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Fiduciary and Trust 36%, Deposit Account 35%, Credit Card 21% (quarter Q2 FY2026).
Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 6.5% |
|---|---|---|---|
| GLS Moat | 7.0 / 10 | ROE | 9.2% |
| Debt / equity | 0.41 | ROA | 1.2% |
| Free-cash-flow yield | 12.7% | Payout ratio | 48% |
| Institutions | 5 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 39: No options
FRMEP has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 1k shares a day on a market cap of $2.5B, with a beta of 0.85; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 57% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 11 / 15 | moat 7.0/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 10 / 20 | 1k shares/day, $2.5B cap, beta 0.85 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
First Merchants Corporation reports earnings on 21 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to First Merchants Corporation by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BANR Banner Corporation | 67.34 | 94.59 | +29% | 80Prime | $2.5B |
| FRME First Merchants Corporation | 39.48 | 71.94 | +45% | 79Good | $2.5B |
| FBNC First Bancorp | 60.33 | 52.51 | -15% | 59Fair | $2.5B |
| CUBI Customers Bancorp, Inc. | 74.35 | 205.44 | +64% | 78Good | $2.5B |
| CLBK Columbia Financial, Inc. | 10.82 | 4.99 | -117% | 64Fair | $2.4B |
| BUSE First Busey Corporation | 29.26 | 36.15 | +19% | 74Good | $2.4B |
| TRMK Trustmark Corporation | 44.13 | 74.55 | +41% | 87Prime | $2.6B |
| FBK FB Financial Corporation | 51.48 | 58.33 | +12% | 73Good | $2.6B |
| SYBT Stock Yards Bancorp, Inc. | 75.27 | 75.81 | +1% | 63Fair | $2.3B |
| NBTB NBT Bancorp Inc. | 50.71 | 70.30 | +28% | 84Prime | $2.6B |
| BBAR Banco BBVA Argentina S.A. | 12.94 | 110,792.88 | +100% | 84Prime | $2.6B |
| BBT Beacon Financial Corp. | 27.49 | 30.11 | +9% | 71Good | $2.3B |
⚖ Compare FRMEP with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about FRMEP
Is FRMEP undervalued right now?
By the GLS models, yes: at 25.22 the stock is 57% below the average fair value of 59.08 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of FRMEP and what does it mean?
FRMEP has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for FRMEP?
59.08 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does First Merchants Corporation report earnings next?
The next earnings report is due on 21 Oct 2026 (after the close), 5 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does FRMEP have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on FRMEP, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.