Merchants Bancorp
$45.56
-1.6%Merchants Bancorp operates as the diversified bank holding company in the United States. The company operates through Multi-family Mortgage Banking, Mortgage Warehousing, and Banking segments. The Multi-family Mortgage Banking segment originates and services government sponsored mortgages for multi-family and healthcare facilities. This segment also offers customized loan products for independent living, assisted living, memory care, and skilled nursing projects; and operates as a syndicator of low-income housing tax credit and debt funds. The Mortgage Warehousing segment funds agency eligible residential loans, including origination, purchase, and sale in the secondary market, as well as commercial loans to non-depository financial institutions. The Banking segment offers a range of financial products and services to consumers and businesses, such as various types of deposit products, as well as multi-family construction and bridge, commercial real estate, commercial and industrial, agricultural, residential mortgage, and consumer loan products. This segment also provides single-family mortgage lending; construction, bridge, and lot financing; first-lien home equity lines of credit; and small business administration lending products and services. Merchants Bancorp was founded in 1990 and is headquartered in Carmel, Indiana.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 12.1).
Valuation inputs: P/E 12.1, earnings yield +8.3%, momentum -1.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +9.6%, ROIC +1.8%).
Profitability stack: net margin +16.0%, ROE +9.6%, ROIC +1.8%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +88.3%, momentum -1.6%, net margin +16.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Merchants Bancorp Market vs Earnings Trajectory
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Merchants Bancorp Fair Value Envelope
Merchants Bancorp Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
Merchants Bancorp Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.
Merchants Bancorp Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Merchants Bancorp Street Expectations Map
Wall Street analysts project that MBIN stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 54.50, with estimates ranging from a low of 51.00 to a high of 58.00.
The consensus 1-year price target stands at 54.50, with estimates ranging from a low of 51.00 to a high of 58.00.
Analyst Consensus Analysis
Upside Potential
Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Merchants Bancorp Insider Positioning
During the last 12 months, insiders have purchased $640K and sold $3.88M worth of MBIN shares, resulting in $3.24M of net selling activity.
3 Months
0
0.00
28.3K
1.33M
-1.3M
-$1.33M
3-6 Months
0
0.00
76.8K
2.03M
-2.0M
-$2.03M
6-9 Months
18.5K
565.03K
26.8K
517.82K
+47K
+$47K
9-12 Months
2.3K
74.70K
0
0.00
+75K
+$75K
Top Buyers
Dury Michael R.
Officer: Ceo Of Merchants Capital
$490K
Thomas Darin L.
Officer: Chief Accounting Officer
$75K
Sievers Sean A.
Officer: Chief Financial Officer
$75K
Top Sellers
Petrie Michael F.
Director, 10 Percent Owner, Officer: Chairman And Ceo
$3.62M
Schroeter Martin A
Officer: President-Warehouse Lending
$253K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $3.24M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
3 insider buyers vs. 2 sellers. More insiders buying than selling indicates positive sentiment.
Insider Activity Insight
Persistent selling pressure: Consistent insider selling with weak buy/sell ratio suggests insiders may be capitalizing on current valuation. Exercise caution and review recent earnings quality and management commentary.
mbin Dividend History
Learning Layer
Related Guides
Build conviction on MBIN by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.