Stock fact sheet · data as of
Merchants Bancorp (MBIN): fair value, margin of safety and Wheel Score
Ticker symbol MBIN · Financial Services · Banks - Regional · United States · Value
Is MBIN undervalued?
At 53.43 (close of 5 Nov 2026), MBIN trades 53% below the GLS average fair value of 114.03. That average comes from 7 models run on the latest filings, and 5 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 Merchants Bancorp the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 7 models disagree widely: DDM gives 6.33 while DCF gives 351.19. 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.
Ranked against every other company we cover, MBIN is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 79, growth score 31, out of 100).
Nine valuation models for MBIN
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 | 351.19 | +557% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 91.91 | +72% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 122.16 | +129% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 32.95 | -38% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 116.49 | +118% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 6.33 | -88% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 77.17 | +44% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -114.37 | -314% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 67.00 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - MBIN passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 8.8 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are thin or negative - ROIC 3.6%, ROE 9.6%, ROA 1.1% - with debt at 1.68 times equity and negative free cash flow.
The dividend yield is 0.80% with a payout ratio of 19% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Mortgage Warehousing 100% (fiscal year FY2017).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 3.6% |
|---|---|---|---|
| GLS Moat | 8.8 / 10 | ROE | 9.6% |
| Debt / equity | 1.68 | ROA | 1.1% |
| Free-cash-flow yield | -23.2% | Payout ratio | 19% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 52: Fair
MBIN scores 52 out of 100 on the Wheel Score (Fair band, 50-69) because it fails filter 1, options that actually trade - options too quiet (340 open interest, 86 a day); and filter 4, financially healthy - Piotroski 5/9 (under 6). A stock must pass all 9 Wheel Trade Filters to reach 70. Otherwise the parts read: value strong, premium strong, moat strong, health fair, red flags strong, option trading weak, stability fair.
Implied volatility is 35% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is thin - 340 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 156k shares a day on a market cap of $2.5B, with a beta of 1.18; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (340 open interest, 86 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 53% below fair value | |
| Premium | Strong | implied volatility 35% | |
| Moat | Strong | moat 8.8/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Strong | Red Flags score 100/100 | |
| Option trading | Weak | 86 contracts a day, 340 open interest | |
| Stability | Fair | beta 1.18, $2.5B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 27 Jan 2027, 83 days away - outside the window of a 30-45-day put sold today.
No analyst upgrades or downgrades were recorded in the last 30 days.
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 Merchants Bancorp 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 |
|---|---|---|---|---|---|
| MBINL Merchants Bancorp | 23.35 | 85.98 | +73% | 33No options | $2.5B |
| MBINN Merchants Bancorp | 18.80 | 81.74 | +77% | 34No options | $2.5B |
| BUSE First Busey Corporation | 29.37 | 34.23 | +14% | 36Weak | $2.4B |
| CLBK Columbia Financial, Inc. | 11.16 | 4.37 | -156% | 20Weak | $2.5B |
| FRMEP First Merchants Corporation | 24.92 | 57.11 | +56% | 35No options | $2.5B |
| MBINM Merchants Bancorp | 25.06 | 87.58 | +71% | 34No options | $2.4B |
| SYBT Stock Yards Bancorp, Inc. | 81.53 | 84.45 | +3% | 38Weak | $2.5B |
| NWBI Northwest Bancshares, Inc. | 15.84 | 15.06 | -5% | 37Weak | $2.3B |
| EFSCP Enterprise Financial Services Corp | 16.34 | 33.30 | +51% | 35No options | $2.3B |
| FRME First Merchants Corporation | 41.89 | 71.06 | +41% | 50Fair | $2.6B |
| BBT Beacon Financial Corp. | 31.34 | 50.55 | +38% | 72Good | $2.6B |
| BANR Banner Corporation | 71.91 | 59.98 | -20% | 30Weak | $2.6B |
⚖ Compare MBIN with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about MBIN
Is MBIN undervalued right now?
By the GLS models, yes: at 53.43 the stock is 53% below the average fair value of 114.03 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of MBIN and what does it mean?
MBIN scores 52 out of 100 (Fair) - it fails Wheel Trade Filters 1, 4. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for MBIN?
114.03 per share as of 5 Nov 2026 - the simple average of the 7 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 Merchants Bancorp report earnings next?
The next earnings report is due on 27 Jan 2027, 83 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does MBIN have listed options, and how liquid are they?
Yes. The nightly snapshot found 32 listed contracts with 340 open interest across all expiries and implied volatility of 35% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.