MFGI (Merchants Financial Group) Moat Score: 3/10 (As of Jul. 31, 2026)

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MFGI Merchants Financial Group Inc MFGI
49 GF Score
Price $41.40
GF Value $28.33
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Merchants Financial Group Moat Score?

Merchants Financial Group MFGI +0.12% 49 Moat Score is 3 as of Jul. 31, 2026. GuruFocus rates MFGI with a GF Score™ of 49/100 and a GF Value™ of $28.33 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,609 Banks companies, Merchants Financial Group ranks better than 74.64% on this metric.

Merchants Financial Group has the Moat Score of 3, which implies that the company might have No Moat - Very weak/transient advantages.

Merchants Financial Group has No Moat: Merchants Financial Group Inc lacks significant market leadership or unique competitive advantages. It operates in a highly competitive financial services sector with low switching costs and minimal brand differentiation. The company does not exhibit strong pricing power or significant regulatory barriers that would provide a durable competitive edge.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Merchants Financial Group might have No Moat - Very weak/transient advantages.

Merchants Financial Group  (OTCPK:MFGI) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Merchants Financial Group Moat Score Related Terms

MFGI vs BFCC, TSBK, MSBC: Moat Score Comparison

For the Banks - Regional subindustry, Merchants Financial Group's Moat Score, along with its competitors' market caps and Moat Score 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.

Merchants Financial Group Moat Score vs Banks Industry

For the Banks industry and Financial Services sector, Merchants Financial Group's Moat Score distribution charts can be found below:

* The bar in red indicates where Merchants Financial Group's Moat Score falls into.


MFGI
49GF Score
Merchants Financial Group Inc MFGI
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 3 mean?
Merchants Financial Group (MFGI) has a Moat Score of 3 as of Jul. 31, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Merchants Financial Group ranks #408 out of 1609 companies in the Banks industry, placing it in the top 25.4%.
Is Merchants Financial Group's Moat Score too high?
Merchants Financial Group's current Moat Score is 3. Based on the distribution chart, Merchants Financial Group ranks #408 out of 1609 companies in the Banks industry, which is above the industry midpoint. Overall, Merchants Financial Group has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Merchants Financial Group's Moat Score compare to BFCC and TSBK?
According to the Banks industry distribution chart, Merchants Financial Group ranks #408 out of 1609 companies for Moat Score. This puts Merchants Financial Group in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Banks company?
A good Moat Score depends on the Banks industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Merchants Financial Group's current Moat Score is 3. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merchants Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Merchants Financial Group (MFGI) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.33, compared to a current price of $41.40 — trading 46.1% above its estimated fair value. The current Moat Score is 3. Merchants Financial Group's overall GF Score™ is 49/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Merchants Financial Group (MFGI), the current Moat Score is 3 as of Jul. 31, 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 Merchants Financial Group (MFGI) Overvalued in 2026?

Based on GuruFocus' analysis, Merchants Financial Group stock appears to be overvalued. The current stock price of $41.40 is trading 46.1% above its estimated GF Value™ of $28.33. GuruFocus considers Merchants Financial Group to be Significantly Overvalued.

Key valuation signals for MFGI:

  • Moat Score: 3
  • GF Value™: $28.33 vs. price of $41.40 (46.1% above fair value)
  • GF Score™: 49/100 with 4 warning signs

No single metric tells the full story. See the MFGI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Merchants Financial Group Business Description

Address 102 E. Third Street, Winona, MN, USA, 55987
Merchants Financial Group Inc is a bank holding company. Through its banking subsidiary, it provides retail, commercial loans, and deposit services to individual as well as business customers. The various products and services offered by the Group include business credit cards, treasury management services, online and mobile banking services, different types of loans, checking accounts, saving accounts, digital wallet, military banking services, mortgage loans, etc. These services are offered through a network of branch offices and a leasing division across Winona, Goodview, Rushford, Lanesboro, St. Charles, Rochester, La Crescent, Caledonia, Spring Grove, and other locations in the USA.
49GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$41.40
Price
$28.33
GF Value