First Merchants Price To Earning vs. Net Income
Can Regional Banks industry sustain growth momentum? Does First have expansion opportunities? Factors like these will boost the valuation of First Merchants. Market participants price First higher when confident in its future expansion prospects. Determining accurate worth demands scrutiny of both present operating results and projected expansion capacity. Evaluating First Merchants demands reviewing these metrics collectively while recognizing certain factors exert disproportionate influence.
Quarterly Earnings Growth (0.11) | Dividend Share 1.43 | Earnings Share 3.81 | Revenue Per Share | Quarterly Revenue Growth (0.05) |
Investors evaluate First Merchants using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating First Merchants' intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Market participants employ diverse analytical approaches to determine fair value and identify buying opportunities when prices dip below calculated worth. External factors like market trends, sector rotation, and investor psychology can cause First Merchants' market price to deviate significantly from intrinsic value.
Please note, there is a significant difference between First Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine if First Merchants is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Conversely, First Merchants' market price signifies the transaction level at which participants voluntarily complete trades.
First Merchants Net Income vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining First Merchants's current stock value. Our valuation model uses many indicators to compare First Merchants value to that of its competitors to determine the firm's financial worth. First Merchants is rated below average in price to earning category among its peers. It is rated # 4 in net income category among its peers making up about 34,139,124 of Net Income per Price To Earning. At this time, First Merchants' Net Income is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value First Merchants by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.First Net Income vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
First Merchants |
| = | 6.62 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
First Merchants |
| = | 226 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
First Net Income Comparison
First Merchants is currently under evaluation in net income category among its peers.
First Merchants Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in First Merchants, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Merchants will eventually generate negative long term returns. The profitability progress is the general direction of First Merchants' change in net profit over the period of time. It can combine multiple indicators of First Merchants, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -130.1 M | -123.6 M | |
| Operating Income | 259.1 M | 272.1 M | |
| Net Income | 226 M | 237.3 M | |
| Income Tax Expense | 33.1 M | 34.8 M | |
| Income Before Tax | 259.1 M | 272.1 M | |
| Total Other Income Expense Net | -638 M | -606.1 M | |
| Net Interest Income | 599.3 M | 486.2 M | |
| Interest Income | 1.1 B | 655.2 M | |
| Net Income From Continuing Ops | 231.6 M | 212.7 M | |
| Net Income Applicable To Common Shares | 253.8 M | 197.7 M | |
| Change To Netincome | 54.4 M | 28.4 M | |
| Net Income Per Share | 3.92 | 4.11 | |
| Income Quality | 1.26 | 1.35 | |
| Net Income Per E B T | 0.87 | 0.61 |
First Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on First Merchants. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of First Merchants position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the First Merchants' important profitability drivers and their relationship over time.
First Merchants Earnings per Share Projection vs Actual
Use First Merchants in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if First Merchants position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First Merchants will appreciate offsetting losses from the drop in the long position's value.First Merchants Pair Trading
First Merchants Pair Trading Analysis
The ability to find closely correlated positions to First Merchants could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Merchants when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First Merchants - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First Merchants to buy it.
The correlation of First Merchants is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Merchants moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Merchants moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for First Merchants can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your First Merchants position
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Additional Tools for First Stock Analysis
When running First Merchants' price analysis, check to measure First Merchants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Merchants is operating at the current time. Most of First Merchants' value examination focuses on studying past and present price action to predict the probability of First Merchants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Merchants' price. Additionally, you may evaluate how the addition of First Merchants to your portfolios can decrease your overall portfolio volatility.