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FRME (First Merchants) Earnings Yield % : 6.91% (As of Dec. 12, 2024)


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What is First Merchants Earnings Yield %?

The earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

As of today (2024-12-12), the stock price of First Merchants is $43.82. First Merchants's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was $3.03. Therefore, First Merchants's earnings yield of today is 6.91%.

The earnings yield does not consider the growth of the business. A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. First Merchants's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2024 was 14.22%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


First Merchants Earnings Yield % Calculation

Earnings yield is the reciprocal of the P/E Ratio.

First Merchants's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=3.030/43.82
=6.91 %

First Merchants's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.030 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

Earnings Yield=Net Income /Market Cap

The earnings in the calculation is the Trailing Twelve Months earnings.


First Merchants  (NAS:FRME) Earnings Yield % Explanation

If the P/E ratio is an indication of how many years it takes for the company to earn back the stock price shareholders pay to buy the shares, the earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

If a company loses money, the earnings yield is negative. This gives a more straightforward indication that the company is losing money. This is an advantage of using earnings yield instead of the P/E ratio in valuation. For valuation purposes, the P/B Ratio and the P/S Ratio should be used for companies that are losing money.

Like the P/E ratio, the earnings yield can be used to compare investments in different industries. It can even be used to compare the attractiveness of different asset classes such as bonds and cash. Of course, the earnings yield should not be the only factor in deciding which asset classes to invest.

Also similar to the P/E ratio, the earnings yield does not consider the growth of the business. A growing company with the same earnings yield should be more attractive than a company that has the same earnings yield but does not grow.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %.

Be Aware

Just like the P/E Ratio, non-recurring items such as selling part of the business, selling a previous investment, etc., can affect earnings yield dramatically. The earning yield is also a poor indication for cyclical companies. When a cyclical stock has a high earnings yield it is usually at the peak of its cycle.


First Merchants Earnings Yield % Related Terms

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First Merchants Business Description

Traded in Other Exchanges
N/A
Address
200 East Jackson Street, P.O. Box 792, Muncie, IN, USA, 47305-2814
First Merchants Corp, through its subsidiaries, provides its customers with financial services delivered locally by bankers. It offers personal banking, business banking, real estate mortgage lending, cash management services, brokerage, wealth management, and insurance. The company reports in only one segment which is community banking.
Executives
Patrick J. Fehring director 32991 HAMILTON COURT, FARMINGTON HILLS MI 48334
Mark K Hardwick officer: Senior Vice President, other: Chief Financial Officer POST OFFICE BOX 792, MUNICE IN 47308-0792
Michael J Stewart officer: Executive Vice President, other: Chief Banking Officer 200 EAST JACKSON STREET, MUNCIE IN 47305
Stephan Fluhler officer: Chief Information Officer, other: Senior Vice President 200 EAST JACKSON STREET, MUNCIE IN 47305
Michael C Rechin officer: Executive Vice President, other: Chief Operating Officer 13831 COLDWATER DRIVE, CARMEL IN 46032
Michael J Fisher director 200 EAST JACKSON STREET, MUNCIE IN 47305
Jason R Sondhi director 200 E JACKSON ST, MUNCIE IN 47305
Kellogg Clark C Jr director 200 EAST JACKSON STREET, MUNCIE IN 47305
Gary Lehman director 200 EAST JACKSON STREET, MUNCIE IN 47305
Mung Chiang director 200 E JACKSON ST, MUNCIE IN 47305
Charles E Schalliol director 300 NORTH MERIDIAN STREET, SUITE 950, INDIANAPOLIS IN 46204
Kevin D Johnson director 200 E JACKSON ST, MUNCIE IN 47305
Patrick A Sherman director 609 TREYBOURNE DRIVE, SUITE A, GREENWOOD IN 46142
Chad Kimball officer: Chief Risk Officer 200 EAST JACKSON STREET, MUNCIE IN 47305
Michael R Becher director 200 E. JACKSON ST., MUNCIE IN 47305