First MerchantsFRME +1.65%60 FCF Yield % is 10.45 as of Jun. 24, 2026, which is 5% above its 10-year median of 9.94. GuruFocus rates FRME with a GF Score™ of 60/100 and a GF Value™ of $39.78 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,505 Banks companies, First Merchants ranks better than 60.86% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
First Merchants FCF Yield % Related Terms
First Merchants FCF Yield % Historical Data
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The historical data trend for First Merchants's FCF Yield % can be seen below:
* 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.
For the Banks - Regional subindustry, First Merchants's FCF Yield %, along with its competitors' market caps and FCF Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First Merchants FCF Yield % vs Banks Industry
For the Banks industry and Financial Services sector, First Merchants's FCF Yield % distribution charts can be found below:
* The bar in red indicates where First Merchants's FCF Yield % falls into.
* 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.
First Merchants (FRME) has a FCF Yield % of 10.45 as of Jun. 24, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on First Merchants and its competitors. This is near median its historical median of 9.94. Over the past decade, First Merchants' FCF Yield % has ranged from 4.74 to 21.64. According to the industry distribution chart, First Merchants ranks #589 out of 1505 companies in the Banks industry, placing it in the top 39.1%.
Is First Merchants' FCF Yield % too high?
First Merchants' current FCF Yield % of 10.45 is near median its 10-year median of 9.94. Over the past 10 years, this metric has ranged from a low of 4.74 to a high of 21.64. The Banks industry median FCF Yield % is 8.26. First Merchants' value of 10.45 is 26.5% above this industry median. Based on the distribution chart, First Merchants ranks #589 out of 1505 companies in the Banks industry, which is above the industry midpoint. Overall, First Merchants has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First Merchants' FCF Yield % compare to CUBI and TRMK?
According to the Banks industry distribution chart, First Merchants ranks #589 out of 1505 companies for FCF Yield %. This puts First Merchants in the upper half of its industry. The industry median FCF Yield % is 8.26. First Merchants' value of 10.45 is 26.5% above this benchmark. Historically, First Merchants' own FCF Yield % has ranged from 4.74 to 21.64 over the past decade. While the company's 10-year median is 9.94 vs. the industry median of 8.26, First Merchants has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for a Banks company?
The median FCF Yield % among Banks companies is 8.26, based on 1,505 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Merchants's current FCF Yield % of 10.45 is 26.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on First Merchants and its competitors. For the Banks industry, the median FCF Yield % is 8.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Merchants's current FCF Yield % is 10.45, which is near median its own 10-year median of 9.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Merchants stock overvalued right now?
Based on GuruFocus' analysis, First Merchants (FRME) is currently considered Fairly Valued. The stock's GF Value™ is $39.78, compared to a current price of $42.60 — trading 7.1% above its estimated fair value. The current FCF Yield % is 10.45, which is near median its 10-year median of 9.94 and 26.5% above the Banks industry median of 8.26. First Merchants' overall GF Score™ is 60/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For First Merchants (FRME), the current FCF Yield % is 10.45 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is First Merchants (FRME) Overvalued in 2026?
Based on GuruFocus' analysis, First Merchants stock appears to be overvalued.
The current stock price of $42.60 is trading 7.1% above its estimated GF Value™ of $39.78.
GuruFocus considers First Merchants to be Fairly Valued.
Key valuation signals for FRME:
FCF Yield %: 10.45 (near median its 10-year median of 9.94)
GF Value™: $39.78 vs. price of $42.60 (7.1% above fair value)
Industry Position: 26.5% above the Banks median (#589 of 1505)
No single metric tells the full story. See the FRME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
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