Merchants Bancorp Profitability Analysis

MBIN
 Stock
  

USD 27.78  0.03  0.11%   

For Merchants Bancorp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Merchants Bancorp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Merchants Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Merchants Bancorp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Merchants Bancorp over time as well as its relative position and ranking within its peers. Additionally, see Stocks Correlation.
  
Return on Sales is expected to rise to 0.76 this year, although the value of Price to Sales Ratio will most likely fall to 3.11. Merchants Bancorp Consolidated Income is quite stable at the moment as compared to the past year. The company's current value of Consolidated Income is estimated at 245.03 Million. Net Income is expected to rise to about 245 M this year, although the value of Accumulated Other Comprehensive Income will most likely fall to (1.5 M).

Merchants Bancorp Revenues

464.29 Million

Is Merchants Bancorp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merchants Bancorp. If investors know Merchants will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merchants Bancorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Merchants Bancorp is measured differently than its book value, which is the value of Merchants that is recorded on the company's balance sheet. Investors also form their own opinion of Merchants Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Merchants Bancorp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merchants Bancorp's market value can be influenced by many factors that don't directly affect Merchants Bancorp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Merchants Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine Merchants Bancorp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merchants Bancorp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Merchants Bancorp EBITDA vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Merchants Bancorp's current stock value. Our valuation model uses many indicators to compare Merchants Bancorp value to that of its competitors to determine the firm's financial worth.
Merchants Bancorp is considered to be number one stock in operating margin category among related companies. It is considered to be number one stock in ebitda category among related companies totaling about  963,652  of EBITDA per Operating Margin. Merchants Bancorp Earnings Before Interest Taxes and Depreciation Amortization EBITDA are quite stable at the moment as compared to the past year. The company's current value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA is estimated at 331.37 Million. Comparative valuation analysis is a catch-all model that can be used if you cannot value Merchants Bancorp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Merchants Bancorp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Merchants Bancorp's earnings, one of the primary drivers of an investment's value.

Merchants EBITDA vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Merchants Bancorp 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
69.55 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Merchants Bancorp 
EBITDA 
 = 
Revenue 
-  
Basic Expenses 
67.02 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Merchants Bancorp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Merchants Bancorp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Merchants Bancorp will eventually generate negative long term returns. The profitability progress is the general direction of Merchants Bancorp's change in net profit over the period of time. It can combine multiple indicators of Merchants Bancorp, 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 ReportedProjected for 2022
Accumulated Other Comprehensive Income-1.5 M-1.5 M
Consolidated Income227.1 M245 M
Net Income227.1 M245 M
Net Income Common Stock206.2 M222.5 M
Operating Income304.9 M329 M
Preferred Dividends Income Statement Impact20.9 M22.5 M
Income Tax Expense77.8 M61.6 M
Net Income Per Employee472.1 K381 K
Merchants Bancorp operates as the diversified bank holding company in the United States. Merchants Bancorp was founded in 1990 and is headquartered in Carmel, Indiana. Merchants Bancorp operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 481 people.

Merchants Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Merchants Bancorp. 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 Merchants Bancorp 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 Merchants Bancorp's important profitability drivers and their relationship over time.

Merchants Bancorp Profitability Trends

Merchants Bancorp profitability trend refers to the progression of profit or loss within a business. An upward trend means that Merchants Bancorp's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Merchants Bancorp's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Merchants Bancorp Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Merchants Bancorp different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Merchants Bancorp in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Merchants Bancorp's future profitability.

Use Merchants Bancorp 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 Merchants Bancorp 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 Merchants Bancorp will appreciate offsetting losses from the drop in the long position's value.

Merchants Bancorp Pair Trading

Merchants Bancorp Pair Trading Analysis

The ability to find closely correlated positions to Merchants Bancorp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Merchants Bancorp 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 Merchants Bancorp - 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 Merchants Bancorp to buy it.
The correlation of Merchants Bancorp is a statistical measure of how it moves in relation to other equities. 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 Merchants Bancorp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Merchants Bancorp 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 Merchants Bancorp 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Merchants Bancorp position

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Additionally, see Stocks Correlation. Note that the Merchants Bancorp information on this page should be used as a complementary analysis to other Merchants Bancorp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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To fully project Merchants Bancorp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Merchants Bancorp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Merchants Bancorp's income statement, its balance sheet, and the statement of cash flows.
Potential Merchants Bancorp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Merchants Bancorp investors may work on each financial statement separately, they are all related. The changes in Merchants Bancorp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Merchants Bancorp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.