Recent News
May 19, 2026 — Board approved a quarterly common dividend raised to $0.37 per share, payable June 19 to holders of record June 5. April 16, 2026 — Board declared a quarterly cash dividend on the company’s Series A preferred shares. March 31, 2026 — First Merchants announced a strategic partnership with a consumer-facing savings platform to power personalized savings and community-giving features through its retail banking channels.
Technical Analysis
ADX at 14.3 indicates no trend strength, suggesting limited directional conviction across the near term; this weak trend strength increases sensitivity to momentum signals when they emerge.
Directional indicators present conflicting signals: DI+ declined, a bearish sign that momentum toward higher prices weakened, while DI- shows a peak-and-reverse pattern, a bullish sign linked to a recent retreat in selling pressure. Together, these readings imply a tug-of-war with sellers holding a slight short-term edge but sellers’ intensity losing momentum.
MACD registers at -0.03 and trends downward below its 0.11 signal line, signaling bearish momentum and lowering the near-term probability of a sustained rally until MACD crosses back above the signal.
MRO sits at 21.95 (positive), which indicates the current price lies above the model target and therefore carries a higher statistical tendency to correct downward toward fair-value levels; this supports the immediate risk of price pullback against the valuation signal.
RSI at 51.16 and trending down shows neutral-to-weak momentum, consistent with potential consolidation or a modest pullback rather than a sharp sell-off.
Price mechanics: closing price at $39.60 sits marginally below the 20-day average ($40.03) and above the 200-day average ($38.70). Short-term EMAs and the 12-day EMA show a decreasing trend, reinforcing near-term downside bias, while the 200-day average provides structural support just below current levels.
Fundamental Analysis
Reported adjusted EPS for Q1 at $1.03 beat consensus estimates of $0.97, producing an EPS surprise of approximately 6.2%; adjusted results reflect exclusion of non-core charges disclosed in the quarter. Forward EPS stands at $1.1388 with a forward PE near 34.02.
Profitability and efficiency: trailing PE reads 38.15, which falls below the industry peer mean PE of 47.69 and below the industry peer median PE of 45.37; WMDST valuation places the stock as under-valued. Price-to-book at 0.93 sits below the industry peer mean book multiple of 1.25 and below the industry peer median of 1.22, indicating the market values tangible equity conservatively relative to peers.
Return metrics remain muted: return on assets equals 0.14% and return on equity equals 1.06%, each down sharply QoQ and YoY (ROA down ~53.6% QoQ, ROE down ~54.5% QoQ), reflecting earnings compression versus capital. Net interest income of $151.3M and interest income of $248.6M sustained core revenue generation; revenue grew about 3.63% overall, with YoY revenue growth at roughly 78.72% (reflecting period-over-period changes tied to balance sheet expansion and transaction items).
Balance sheet and capital: total assets reached $21.07B at period end; debt-to-assets stands at 6.58% and debt-to-equity at 0.523, both up QoQ, consistent with recent acquisition-related funding and balance-sheet growth. Tangible book value per share registers at $42.35, while market capitalization sits near $2.456B and enterprise value near $3.842B, leaving EV/Revenue and cash-flow metrics that support the WMDST under-valued assessment.
Cash flow and shareholder returns: operating cash flow and free cash flow each roughly $58.6M; free cash flow yield equals about 2.39%, above the industry peer mean free cash flow yield of 1.68%. Dividend coverage sits at 1.21 and the payout ratio runs near 82.7%, indicating a sizeable portion of earnings channels to dividends while coverage remains just over one time.
Valuation summary: WMDST values the stock as under-valued based on the combination of conservative market multiples relative to peer averages, positive adjusted EPS surprise, and positive free cash generation; however, low profitability ratios and elevated payout fraction constrain the margin for error.
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 | $ 58.6 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: 0.145 FRME: 0.066 median: 0.065 mean: 0.057 low: -0.0 |
|
| Debt To Equity | 0.523 | |
| Debt To Equity QoQ | 49.243 % | |
| Debt To Equity YoY | 16.647 % | |
| Debt To Equity IPRWA | high: 1.682 median: 0.612 mean: 0.547 FRME: 0.523 low: -0.002 |
|
| 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: 1.989 mean: 1.253 median: 1.216 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: 47.686 median: 45.368 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: 26.967 FRME: 15.631 mean: 14.397 median: 13.314 low: 0.11 |
|
| 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: 0.016 mean: 0.01 median: 0.01 FRME: 0.008 low: 0.005 |
|
| Receivables Turnover | 1.651 | |
| Receivables Turnover Ratio QoQ | -12.532 % | |
| Receivables Turnover Ratio YoY | -7.247 % | |
| Receivables Turnover Ratio IPRWA | high: 4.518 mean: 2.644 median: 2.475 FRME: 1.651 low: 0.805 |
|
| 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: 25.765 % mean: 4.819 % FRME: 3.628 % median: 0.992 % 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: -2.33 % median: -2.963 % 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: 9.54 % FRME: 2.386 % mean: 1.684 % median: 1.587 % low: -3.189 % |
|
| Free Cash Growth | -27.407 % | |
| Free Cash Growth QoQ | 250.473 % | |
| Free Cash Growth YoY | 218.76 % | |
| Free Cash Growth IPRWA | high: 299.762 % FRME: -27.407 % median: -50.617 % mean: -59.823 % low: -368.012 % |
|
| 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: 0.612 % median: 0.255 % mean: 0.253 % 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: 0.043 median: 0.023 mean: 0.022 FRME: 0.011 low: 0.001 |
|
| DuPont ROE | 1.107 % | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |