First MerchantsFRME +1.96%60 Net Margin % is 17.92% as of Mar. 2026, which is 48% below its 10-year median of 34.24. 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 1,527 Banks companies, First Merchants ranks better than 60.9% on this metric.
Net margin is calculated as Net Income divided by its Revenue. First Merchants's Net Income for the
three
months ended in Mar. 2026 was $28.2 Mil. First Merchants's Revenue for the
three
months ended in Mar. 2026 was $157.1 Mil. Therefore, First Merchants's net margin for the quarter that ended in Mar. 2026 was 17.92%.
The historical rank and industry rank for First Merchants's Net Margin % or its related term are showing as below:
FRME'
s Net Margin % Range Over the Past 10 Years
Min: 27.58 Med: 34.24 Max: 39.52
Current: 30.14
FRME's Net Margin % is ranked better than 60.9% of 1527
companies
in the Banks industry
Industry Median: 26.95
vs FRME: 30.14
First Merchants (NAS:FRME) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
First Merchants Net Margin % Related Terms
First Merchants Net Margin % Historical Data
* Premium members only.
The historical data trend for First Merchants's Net Margin % 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 Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Banks Industry
For the Banks industry and Financial Services sector, First Merchants's Net Margin % distribution charts can be found below:
* The bar in red indicates where First Merchants's Net Margin % 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 Net Margin % of 17.92% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on First Merchants and its competitors. This is 48% below median its historical median of 34.24. Over the past decade, First Merchants' Net Margin % has ranged from 27.58 to 39.52. According to the industry distribution chart, First Merchants ranks #597 out of 1527 companies in the Banks industry, placing it in the top 39.1%.
Is First Merchants' Net Margin % too high?
First Merchants' current Net Margin % of 17.92% is 48% below median its 10-year median of 34.24. Over the past 10 years, this metric has ranged from a low of 27.58 to a high of 39.52. The Banks industry median Net Margin % is 26.95. First Merchants' value of 17.92% is 33.5% below this industry median. Based on the distribution chart, First Merchants ranks #597 out of 1527 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' Net Margin % compare to CUBI and TRMK?
According to the Banks industry distribution chart, First Merchants ranks #597 out of 1527 companies for Net Margin %. This puts First Merchants in the upper half of its industry. The industry median Net Margin % is 26.95. First Merchants' value of 17.92% is 33.5% below this benchmark. Historically, First Merchants' own Net Margin % has ranged from 27.58 to 39.52 over the past decade. While the company's 10-year median is 34.24 vs. the industry median of 26.95, First Merchants has consistently been below 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 Net Margin % for a Banks company?
The median Net Margin % among Banks companies is 26.95, based on 1,527 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Merchants's current Net Margin % of 17.92% is 33.5% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on First Merchants and its competitors. For the Banks industry, the median Net Margin % is 26.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Merchants's current Net Margin % is 17.92%, which is 48% below median its own 10-year median of 34.24. 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 $42.73 — trading 7.4% above its estimated fair value. The current Net Margin % is 17.92%, which is 48% below median its 10-year median of 34.24 and 33.5% below the Banks industry median of 26.95. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For First Merchants (FRME), the current Net Margin % is 17.92% as of Mar. 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 $42.73 is trading 7.4% above its estimated GF Value™ of $39.78.
GuruFocus considers First Merchants to be Fairly Valued.
Key valuation signals for FRME:
Net Margin %: 17.92% (48% below median its 10-year median of 34.24)
GF Value™: $39.78 vs. price of $42.73 (7.4% above fair value)
Industry Position: 33.5% below the Banks median (#597 of 1527)
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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