Recent News
On August 21, 2025 Merchants Bancorp announced quarterly cash dividends: $0.10 per common share (payable October 1, 2025; record/ex-dividend date September 15, 2025), along with proportional payments on preferred depositary series. No other non-earnings corporate headlines qualified in the 13-week window ending October 23, 2025.
Technical Analysis
Directional indicators (ADX / DI+ / DI-): ADX at 10.52 indicates no established trend, while DI+ at 19.14 shows an increasing pattern that favors upside and DI- at 16.83 registered a peak & reversal, which also signals bullish directional readings; low ADX tempers conviction but directional indicators bias toward upside into the near term.
MACD: MACD at -0.08 shows a dip & reversal and sits above the signal line (-0.10), which constitutes a bullish momentum signal; the crossover supports the view that short-term momentum turned positive after a recent trough.
MRO (Momentum/Regression Oscillator): MRO at -19.12 with a dip & reversal indicates price trades below the regression target and carries potential for catch-up gains; the negative oscillator points to upward pressure if momentum sustains.
RSI: RSI at 49.7 with a peak & reversal indicates a recent loss of upward momentum and short-term weakness in relative strength; this introduces a countervailing force against purely bullish momentum signals.
Price Versus Moving Averages and Bands: Price close at $32.44 sits above the 20-day average ($31.88) and roughly at short-term EMA levels (12-day EMA trend: dip & reversal), which supports a near-term lift; price remains below the 200-day average ($34.38), signaling longer-term underperformance relative to the multi-month trend. Bollinger band placement near the upper 1x band suggests limited immediate volatility expansion.
Ichimoku & Support: Tenkan-Sen ($31.69) and Kijun-Sen ($31.79) lie below the close, and the supertrend lower support at $30.55 provides a nearby downside reference; these levels align with short-term technical support if momentum stalls.
Fundamental Analysis
Earnings And Revenue: Reported EPS of $0.60 missed the $1.12 estimate, an EPS surprise of -46.43%. Forward EPS stands at $1.39 and forward P/E at 23.86. Total revenue listed at $178,057,000; reported net income at $37,981,000. QoQ earnings growth registered -18.96% while earnings growth year-over-year measured +106.04%.
Valuation Multiples: Trailing P/E at 56.60 and P/B at 0.92 present a mixed picture: P/B sits below the industry peer mean (industry peer mean P/B = 1.19) while trailing P/E stands above the industry peer mean (industry peer mean P/E = 37.79). WMDST values the stock as over-valued and notes an EVR of 29.997 supporting that assessment.
Profitability & Returns: Return on assets at 0.20% and return on equity at 2.33% reflect low cash-on-assets and modest equity returns; both QoQ and YoY return-on-equity measures declined (QoQ -35.76%, YoY -56.22%), indicating compression of near-term profitability against last year’s levels.
Cash Flow & Dividends: Operating cash flow shows a negative $121,152,000 while ending cash equals $647,165,000; free cash flow stood at -$125,721,000 with a free cash flow yield of -8.34%. Dividend payout ratio equals 39.11% with dividend coverage of 2.56 and a dividend yield near 0.99% based on reported dividend metrics; the August dividend declaration confirms ongoing shareholder distributions despite negative near-term free cash flow.
Capital Structure & Leverage: Debt-to-assets at 20.03% increased sharply YoY (YoY change +50.50%) with debt-to-equity at 2.35 (YoY +46.71%); the company carries net debt of $3,187,309,000 versus market cap $1,506,709,582. Cost of debt stands near 3.487% and interest expense at $175,680,000, pressures that weigh on net margins and free cash flow.
Growth Trends: YoY revenue change measured -5.46% and QoQ revenue change registered -191.44% as reported; asset growth rate modest at 1.83%. Receivables turnover improved QoQ and YoY by +23.48% and +22.87% respectively, indicating faster collections versus recent periods.
Valuation Summary: Fundamentals combine an EPS miss, compressed short-term profitability, negative free cash flow, and elevated leverage with mixed multiples (low P/B but high trailing P/E). WMDST’s over-valued determination reflects these drivers alongside expected forward earnings and enterprise metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-28 |
| NEXT REPORT DATE: | 2025-10-27 |
| CASH FLOW | Begin Period Cash Flow | $ 521.3 M |
| Operating Cash Flow | $ -121.15 M | |
| Capital Expenditures | $ -4.57 M | |
| Change In Working Capital | $ -24.36 M | |
| Dividends Paid | $ -14.85 M | |
| Cash Flow Delta | $ 125.9 M | |
| End Period Cash Flow | $ 647.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 178.1 M | |
| Forward Revenue | $ 74.8 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 770.0 K | |
| Depreciation and Amortization | $ 770.0 K | |
| Research and Development | — | |
| Total Operating Expenses | — | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | — | |
| Operating Income | — | |
| Interest Income | $ 304.4 M | |
| Interest Expense | $ 175.7 M | |
| Net Interest Income | $ 128.7 M | |
| Income Before Tax | $ 48.8 M | |
| Tax Provision | $ 10.9 M | |
| Tax Rate | 22.2 % | |
| Net Income | $ 38.0 M | |
| Net Income From Continuing Operations | $ 38.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.12 | |
| EPS Actual | $ 0.60 | |
| EPS Difference | $ -0.52 | |
| EPS Surprise | -46.429 % | |
| Forward EPS | $ 1.39 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 19.1 B | |
| Intangible Assets | $ 201.1 M | |
| Net Tangible Assets | $ 2.0 B | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | — | |
| Cash | $ 647.2 M | |
| Net Receivables | $ 82.4 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | — | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | $ 3.2 B | |
| Total Debt | $ 3.8 B | |
| Total Liabilities | $ 17.0 B | |
| EQUITY | ||
| Total Equity | $ 1.6 B | |
| Retained Earnings | $ 1.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 35.60 | |
| Shares Outstanding | 45.885 M | |
| Revenue Per-Share | $ 3.88 | |
| VALUATION | Market Capitalization | $ 1.5 B |
| Enterprise Value | $ 5.3 B | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 29.997 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 11.719 | |
| Asset To Liability | 1.129 | |
| Debt To Capital | 0.701 | |
| Debt To Assets | 0.2 | |
| Debt To Assets QoQ | -5.895 % | |
| Debt To Assets YoY | 5049.871 % | |
| Debt To Assets IPRWA | high: 0.346 MBIN: 0.2 mean: 0.097 median: 0.074 low: 0.003 |
|
| Debt To Equity | 2.348 | |
| Debt To Equity QoQ | -5.582 % | |
| Debt To Equity YoY | 4670.636 % | |
| Debt To Equity IPRWA | high: 4.593 MBIN: 2.348 mean: 1.043 median: 0.63 low: -1.21 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.922 | |
| Price To Book QoQ | -11.364 % | |
| Price To Book YoY | -32.708 % | |
| Price To Book IPRWA | high: 2.214 mean: 1.192 median: 1.025 MBIN: 0.922 low: 0.433 |
|
| Price To Earnings (P/E) | 56.597 | |
| Price To Earnings QoQ | 61.23 % | |
| Price To Earnings YoY | 95.645 % | |
| Price To Earnings IPRWA | high: 93.007 MBIN: 56.597 mean: 37.79 median: 37.51 low: -19.014 |
|
| PE/G Ratio | -1.595 | |
| Price To Sales (P/S) | 8.462 | |
| Price To Sales QoQ | -26.702 % | |
| Price To Sales YoY | -32.007 % | |
| Price To Sales IPRWA | high: 26.993 mean: 11.095 median: 10.707 MBIN: 8.462 low: 1.333 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 23.864 | |
| Forward PE/G | -0.673 | |
| Forward P/S | 20.156 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.009 | |
| Asset Turnover Ratio QoQ | 21.632 % | |
| Asset Turnover Ratio YoY | 6.705 % | |
| Asset Turnover Ratio IPRWA | high: 0.035 mean: 0.014 median: 0.012 MBIN: 0.009 low: 0.003 |
|
| Receivables Turnover | 2.156 | |
| Receivables Turnover Ratio QoQ | 23.477 % | |
| Receivables Turnover Ratio YoY | 22.871 % | |
| Receivables Turnover Ratio IPRWA | high: 5.751 median: 2.477 mean: 2.367 MBIN: 2.156 low: 0.682 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 42.331 | |
| 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 | -0.026 | |
| CapEx To Depreciation | -5.934 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 6.0 B | |
| Net Invested Capital | $ 5.5 B | |
| Invested Capital | $ 5.5 B | |
| Net Tangible Assets | $ 2.0 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 | 3.487 % | |
| 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 | 2.557 | |
| Dividend Payout Ratio | 0.391 | |
| Dividend Rate | $ 0.32 | |
| Dividend Yield | 0.01 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.827 % | |
| Revenue Growth | 22.721 % | |
| Revenue Growth QoQ | -191.436 % | |
| Revenue Growth YoY | -546.473 % | |
| Revenue Growth IPRWA | high: 30.085 % MBIN: 22.721 % mean: 8.792 % median: 3.74 % low: -12.916 % |
|
| Earnings Growth | -35.484 % | |
| Earnings Growth QoQ | -18.957 % | |
| Earnings Growth YoY | 106.039 % | |
| Earnings Growth IPRWA | high: 133.333 % mean: 13.407 % median: 7.843 % MBIN: -35.484 % low: -81.818 % |
|
| 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) | $ -125.72 M | |
| Free Cash Flow Yield | -8.344 % | |
| Free Cash Flow Yield QoQ | -199.003 % | |
| Free Cash Flow Yield YoY | -459.036 % | |
| Free Cash Flow Yield IPRWA | high: 11.343 % median: 2.247 % mean: 0.619 % MBIN: -8.344 % low: -15.511 % |
|
| Free Cash Growth | -189.051 % | |
| Free Cash Growth QoQ | -80.484 % | |
| Free Cash Growth YoY | 68.989 % | |
| Free Cash Growth IPRWA | high: 562.614 % median: -14.706 % mean: -38.206 % MBIN: -189.051 % low: -637.309 % |
|
| Free Cash To Net Income | -3.31 | |
| Cash Flow Margin | 21.999 % | |
| Cash Flow To Earnings | 1.031 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.2 % | |
| Return On Assets QoQ | -35.484 % | |
| Return On Assets YoY | -52.83 % | |
| Return On Assets IPRWA | high: 0.656 % mean: 0.309 % median: 0.295 % MBIN: 0.2 % low: -0.212 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.023 | |
| Return On Equity QoQ | -35.756 % | |
| Return On Equity YoY | -56.215 % | |
| Return On Equity IPRWA | high: 0.07 median: 0.033 mean: 0.032 MBIN: 0.023 low: -0.011 |
|
| DuPont ROE | 2.343 % | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |