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Merchants Financial GroupMFGI +0.12%49 Owner Earnings per Share (TTM) is 2.93 as of Dec. 2025, which is 69% below its 10-year median of 9.56. 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 1,035 Banks companies, Merchants Financial Group ranks worse than 68.79% on this metric.
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
Merchants Financial Group's Owner Earnings per Share (TTM) ended in Dec. 2025 was $2.93. It's Price-to-Owner-Earnings ratio for today is 14.13.
The historical rank and industry rank for Merchants Financial Group's Owner Earnings per Share (TTM) or its related term are showing as below:
MFGI'
s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 8.19 Med: 9.56 Max: 14.15
Current: 14.15
Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.
Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.
Merchants Financial Group Owner Earnings per Share (TTM) Related Terms
Merchants Financial Group Owner Earnings per Share (TTM) Historical Data
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The historical data trend for Merchants Financial Group's Owner Earnings per Share (TTM) 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.
Merchants Financial Group Owner Earnings per Share (TTM) Chart
MFGI vs BFCC, TSBK, MSBC: Owner Earnings per Share (TTM) Comparison
For the Banks - Regional subindustry, Merchants Financial Group's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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 Price-to-Owner-Earnings vs Banks Industry
For the Banks industry and Financial Services sector, Merchants Financial Group's Price-to-Owner-Earnings distribution charts can be found below:
* The bar in red indicates where Merchants Financial Group's Price-to-Owner-Earnings falls into.
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income.
Merchants Financial Group's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2025 was $0.1 Mil.
4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $2.0 Mil
It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.
The following shows how to get maintenance capital expenditure.
First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.
Merchants Financial Group's 5-Year Average Maintenance Capital Expenditure = $2.0 Mil
5. "Change In Working Capital" is from cashflow statement. Merchants Financial Group's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2025 was $-12.9 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.
* 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.
What does a Owner Earnings per Share (TTM) of 2.93 mean?
Merchants Financial Group (MFGI) has a Owner Earnings per Share (TTM) of 2.93 as of Dec. 2025. Warren Buffett defined owner earnings as reported earnings plus depreciation less average maintenance capital expenditure. View historical data on Merchants Financial Group. This is 69% below median its historical median of 9.56. Over the past decade, Merchants Financial Group's Owner Earnings per Share (TTM) has ranged from 8.19 to 14.15. According to the industry distribution chart, Merchants Financial Group ranks #712 out of 1035 companies in the Banks industry, placing it in the top 68.8%.
Is Merchants Financial Group's Owner Earnings per Share (TTM) too high?
Merchants Financial Group's current Owner Earnings per Share (TTM) of 2.93 is 69% below median its 10-year median of 9.56. Over the past 10 years, this metric has ranged from a low of 8.19 to a high of 14.15. The Banks industry median Owner Earnings per Share (TTM) is 10.60. Merchants Financial Group's value of 2.93 is 72.4% below this industry median. Based on the distribution chart, Merchants Financial Group ranks #712 out of 1035 companies in the Banks industry, which is below 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 Owner Earnings per Share (TTM) compare to BFCC and TSBK?
According to the Banks industry distribution chart, Merchants Financial Group ranks #712 out of 1035 companies for Owner Earnings per Share (TTM). This places Merchants Financial Group in the lower half of its industry. The industry median Owner Earnings per Share (TTM) is 10.60. Merchants Financial Group's value of 2.93 is 72.4% below this benchmark. Historically, Merchants Financial Group's own Owner Earnings per Share (TTM) has ranged from 8.19 to 14.15 over the past decade. While the company's 10-year median is 9.56 vs. the industry median of 10.60, Merchants Financial Group 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 Owner Earnings per Share (TTM) for a Banks company?
The median Owner Earnings per Share (TTM) among Banks companies is 10.60, based on 1,035 companies in the industry. Companies in the top quartile (top 25%) have a Owner Earnings per Share (TTM) significantly above this median, while those in the bottom quartile fall well below. However, Owner Earnings per Share (TTM) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merchants Financial Group's current Owner Earnings per Share (TTM) of 2.93 is 72.4% 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 Owner Earnings per Share (TTM) mean?
A high Owner Earnings per Share (TTM) can signal that a stock is expensive relative to its fundamentals. Warren Buffett defined owner earnings as reported earnings plus depreciation less average maintenance capital expenditure. View historical data on Merchants Financial Group. For the Banks industry, the median Owner Earnings per Share (TTM) is 10.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merchants Financial Group's current Owner Earnings per Share (TTM) is 2.93, which is 69% below median its own 10-year median of 9.56. 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 Owner Earnings per Share (TTM) is 2.93, which is 69% below median its 10-year median of 9.56 and 72.4% below the Banks industry median of 10.60. 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 Owner Earnings per Share (TTM) calculated?
Owner Earnings per Share (TTM) is calculated from a company's financial statements. For Merchants Financial Group (MFGI), the current Owner Earnings per Share (TTM) is 2.93 as of Dec. 2025. 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:
Owner Earnings per Share (TTM): 2.93 (69% below median its 10-year median of 9.56)
GF Value™: $28.33 vs. price of $41.40 (46.1% above fair value)
Industry Position: 72.4% below the Banks median (#712 of 1035)
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 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
Get the complete analysis for MFGI
Owner Earnings per Share (TTM) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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