Recent News
On April 22, First Merchants published first-quarter 2026 results showing adjusted EPS of $1.03 and headline charges tied to integration and a mortgage mark‑to‑market loss; the company highlighted $151.3M of net interest income and $21.1B in total assets at quarter‑end. On April 23, the earnings call transcript detailed acquisition-related items, tangible‑book dilution and an estimated 2.4‑year earn‑back for the First Savings deal. In mid‑February, commentary noted a $0.36 per‑share cash dividend and an expanded board following the acquisition integration steps.
Technical Analysis
ADX at 12.16 indicates no established trend strength; that lack of trend lowers conviction for strong directional moves until momentum or directional indicators strengthen.
DI+ equals 25.15 and shows a decreasing trend, a bearish directional signal; DI‑ equals 21.60 and shows a peak‑and‑reversal (declining DI‑), which generates a bullish directional signal. The coexistence of a weakening DI+ and a peak‑and‑reversal in DI‑ produces a mixed directional profile that favors range trading while integration-related headlines resolve.
MACD displays a dip‑and‑reversal, which signals bullish momentum development; however, MACD (0.27) sits just below its signal line (0.31), so a bullish crossover has not yet occurred and momentum requires confirmation via a line crossover to strengthen the near‑term upside case.
MRO reads 24.12 (positive), indicating price currently sits above the model target and therefore carries measurable mean‑reversion pressure; this technical suggests the current price may face downside reversion against fundamental valuation unless momentum confirms further gains.
RSI at 53.65 provides a neutral momentum backdrop; the recent dip‑and‑reversal in RSI implies a mild upward tilt but not overbought conditions, aligning with a cautious, short‑term constructive bias.
Price sits near short‑term averages: close $40.51 versus 12‑day EMA $40.36 (increasing), 20‑day average $40.32, 50‑day average $39.17 and 200‑day average $38.67. Bollinger bands remain tight (upper band ~$40.80, lower band ~$39.84), so expect compressed volatility to expand when a decisive technical trigger—MACD crossover or directional indicator alignment—arrives. Volume on the day (255,095) trails 10‑day and 50‑/200‑day averages, supporting the view that current moves carry lower conviction until participation rises.
Fundamental Analysis
Reported EPS equaled $1.03 against an estimate of $0.97, producing an EPS surprise of about 6.2%, and adjusted EPS also landed at $1.03 after excluding non‑core charges; that adjusted result signals operating resilience despite integration costs. Net interest income registered $151.3M for the quarter, supporting margin expansion narratives cited by management. Net income for the quarter totaled $28.2M.
Valuation multiples show a mixed picture: trailing PE stands at 38.15 while forward PE equals 34.02, indicating some near‑term improvement priced into forward estimates. Price‑to‑book reads 0.93, below the industry peer mean of 1.29441 and below the industry peer median of 1.27776, placing the stock beneath peer book valuations while remaining inside the industry peer range. Price‑to‑sales measures at 15.63 sit slightly above the industry peer mean of 14.51319. WMDST values the stock as under‑valued based on the firm’s model and current price relative to book and forward earnings.
Profitability and capital metrics reflect modest returns and continued loan growth from the acquisition: return on assets equals 0.14% and return on equity equals 1.06%, metrics that remained below the industry peer mean and median levels. Revenue growth shows large year‑over‑year expansion at 78.72% and quarter‑over‑quarter change at 226.55% (both figures reflect acquisition contributions and base‑effects). Loan and deposit balances expanded meaningfully during the trailing twelve months, and allowance for credit losses rose to reflect acquired loan mix and prudent reserve adjustments. Dividend yield equals 0.95% with a payout ratio of 82.71% and dividend coverage near 1.21x, reflecting ongoing capital return while maintaining coverage.
Balance‑sheet strength appears intact: total assets equal $21.07B as of 2026‑03‑31, cash sits at $273.4M, tangible equity near $1.85B, and debt metrics remain moderate (debt‑to‑equity ~0.52; debt‑to‑assets ~6.58%). Integration produced recorded goodwill and intangible assets consistent with a sizable acquisition; management reported acquisition‑related costs that depressed GAAP net income for the quarter but also noted adjusted operating earnings above prior year levels.
Valuation summary: WMDST’s current valuation labels the stock under‑valued, supported by a sub‑book multiple (P/B < industry peer mean/median) and a forward PE below the industry peer mean; near‑term profit metrics remain affected by acquisition accounting and mortgage mark‑to‑market items that should unwind as integration progresses and loan mix normalizes.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-22 |
| NEXT REPORT DATE: | 2026-07-22 |
| CASH FLOW | Begin Period Cash Flow | $ 84.2 M |
| Operating Cash Flow | $ 34.2 M | |
| Capital Expenditures | — | |
| Change In Working Capital | $ -17.39 M | |
| Dividends Paid | $ -23.29 M | |
| Cash Flow Delta | $ 13.9 M | |
| End Period Cash Flow | $ 98.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 157.1 M | |
| Forward Revenue | $ 99.3 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 6.7 M | |
| Depreciation and Amortization | $ 9.0 M | |
| Research and Development | — | |
| Total Operating Expenses | — | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | — | |
| Operating Income | — | |
| Interest Income | $ 248.6 M | |
| Interest Expense | $ 97.3 M | |
| Net Interest Income | $ 151.3 M | |
| Income Before Tax | $ 27.1 M | |
| Tax Provision | $ -1.07 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ 28.2 M | |
| Net Income From Continuing Operations | $ 28.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.97 | |
| EPS Actual | $ 1.03 | |
| EPS Difference | $ 0.06 | |
| EPS Surprise | 6.186 % | |
| Forward EPS | $ 1.14 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 21.1 B | |
| Intangible Assets | $ 824.5 M | |
| Net Tangible Assets | $ 1.8 B | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | — | |
| Cash | $ 273.4 M | |
| Net Receivables | $ 97.0 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 18.9 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | $ 1.1 B | |
| Total Debt | $ 1.4 B | |
| Total Liabilities | $ 18.4 B | |
| EQUITY | ||
| Total Equity | $ 2.6 B | |
| Retained Earnings | $ 1.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 42.35 | |
| Shares Outstanding | 62.508 M | |
| Revenue Per-Share | $ 2.51 | |
| VALUATION | Market Capitalization | $ 2.5 B |
| Enterprise Value | $ 3.8 B | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 24.449 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 7.96 | |
| Asset To Liability | 1.145 | |
| Debt To Capital | 0.344 | |
| Debt To Assets | 0.066 | |
| Debt To Assets QoQ | 46.111 % | |
| Debt To Assets YoY | 17.139 % | |
| Debt To Assets IPRWA | high: 0.102 median: 0.082 mean: 0.066 FRME: 0.066 low: 0.001 |
|
| Debt To Equity | 0.523 | |
| Debt To Equity QoQ | 49.243 % | |
| Debt To Equity YoY | 16.647 % | |
| Debt To Equity IPRWA | high: 1.386 median: 0.743 mean: 0.622 FRME: 0.523 low: 0.011 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.928 | |
| Price To Book QoQ | 5.055 % | |
| Price To Book YoY | -5.407 % | |
| Price To Book IPRWA | high: 2.268 mean: 1.294 median: 1.278 FRME: 0.928 low: 0.287 |
|
| Price To Earnings (P/E) | 38.148 | |
| Price To Earnings QoQ | -1.25 % | |
| Price To Earnings YoY | -8.382 % | |
| Price To Earnings IPRWA | high: 85.229 mean: 50.411 median: 38.233 FRME: 38.148 low: 28.296 |
|
| PE/G Ratio | 7.477 | |
| Price To Sales (P/S) | 15.631 | |
| Price To Sales QoQ | 24.816 % | |
| Price To Sales YoY | 10.749 % | |
| Price To Sales IPRWA | high: 21.108 FRME: 15.631 mean: 14.513 median: 14.264 low: 2.931 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 34.021 | |
| Forward PE/G | 6.668 | |
| Forward P/S | 24.732 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.008 | |
| Asset Turnover Ratio QoQ | -13.846 % | |
| Asset Turnover Ratio YoY | -10.092 % | |
| Asset Turnover Ratio IPRWA | high: 0.015 mean: 0.01 median: 0.01 FRME: 0.008 low: 0.007 |
|
| Receivables Turnover | 1.651 | |
| Receivables Turnover Ratio QoQ | -12.532 % | |
| Receivables Turnover Ratio YoY | -7.247 % | |
| Receivables Turnover Ratio IPRWA | high: 3.508 mean: 2.632 median: 2.467 low: 1.678 FRME: 1.651 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 55.285 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 4.1 B | |
| Net Invested Capital | $ 4.0 B | |
| Invested Capital | $ 4.0 B | |
| Net Tangible Assets | $ 1.8 B | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 10.011 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 1.209 | |
| Dividend Payout Ratio | 0.827 | |
| Dividend Rate | $ 0.37 | |
| Dividend Yield | 0.009 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 10.762 % | |
| Revenue Growth | 3.628 % | |
| Revenue Growth QoQ | 226.553 % | |
| Revenue Growth YoY | 78.719 % | |
| Revenue Growth IPRWA | high: 23.196 % mean: 5.621 % FRME: 3.628 % median: -2.054 % low: -18.912 % |
|
| Earnings Growth | 5.102 % | |
| Earnings Growth QoQ | -605.149 % | |
| Earnings Growth YoY | -78.458 % | |
| Earnings Growth IPRWA | high: 41.86 % FRME: 5.102 % mean: -3.306 % median: -12.502 % low: -43.519 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | — | |
| EBIT Margin QoQ | — | |
| EBIT Margin YoY | — | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 58.6 M | |
| Free Cash Flow Yield | 2.386 % | |
| Free Cash Flow Yield QoQ | -36.254 % | |
| Free Cash Flow Yield YoY | -12.505 % | |
| Free Cash Flow Yield IPRWA | high: 6.259 % FRME: 2.386 % median: 1.193 % mean: 1.098 % low: -2.878 % |
|
| Free Cash Growth | -27.407 % | |
| Free Cash Growth QoQ | 250.473 % | |
| Free Cash Growth YoY | 218.76 % | |
| Free Cash Growth IPRWA | high: 274.28 % FRME: -27.407 % median: -50.617 % mean: -63.881 % low: -309.536 % |
|
| Free Cash To Net Income | 2.081 | |
| Cash Flow Margin | 21.736 % | |
| Cash Flow To Earnings | 1.213 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.05 | |
| Return On Assets (ROA) | 0.14 % | |
| Return On Assets QoQ | -53.642 % | |
| Return On Assets YoY | -53.488 % | |
| Return On Assets IPRWA | high: 0.513 % mean: 0.225 % median: 0.205 % FRME: 0.14 % low: 0.065 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.011 | |
| Return On Equity QoQ | -54.472 % | |
| Return On Equity YoY | -55.648 % | |
| Return On Equity IPRWA | high: 0.041 mean: 0.02 median: 0.018 FRME: 0.011 low: 0.005 |
|
| DuPont ROE | 1.107 % | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |