First MerchantsFRME +1.65%60 Pretax Margin % is 17.24% as of Mar. 2026, which is 56% below its 10-year median of 39.46. 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 worse than 52.91% on this metric.
The historical rank and industry rank for First Merchants's Pretax Margin % or its related term are showing as below:
FRME'
s Pretax Margin % Range Over the Past 10 Years
Min: 33.8 Med: 39.46 Max: 46.31
Current: 33.8
FRME's Pretax Margin % is ranked worse than 52.91% of 1527
companies
in the Banks industry
Industry Median: 34.88
vs FRME: 33.80
First Merchants (NAS:FRME) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
First Merchants Pretax Margin % Related Terms
First Merchants Pretax Margin % Historical Data
* Premium members only.
The historical data trend for First Merchants's Pretax 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.
FRME vs CUBI, TRMK, WAFD: Pretax Margin % Comparison
For the Banks - Regional subindustry, First Merchants's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, First Merchants's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where First Merchants's Pretax 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 Pretax Margin % of 17.24% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on First Merchants and its competitors. This is 56% below median its historical median of 39.46. Over the past decade, First Merchants' Pretax Margin % has ranged from 33.80 to 46.31. According to the industry distribution chart, First Merchants ranks #808 out of 1527 companies in the Banks industry, placing it in the top 52.9%.
Is First Merchants' Pretax Margin % too high?
First Merchants' current Pretax Margin % of 17.24% is 56% below median its 10-year median of 39.46. Over the past 10 years, this metric has ranged from a low of 33.80 to a high of 46.31. The Banks industry median Pretax Margin % is 34.88. First Merchants' value of 17.24% is 50.6% below this industry median. Based on the distribution chart, First Merchants ranks #808 out of 1527 companies in the Banks industry, which is below 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' Pretax Margin % compare to CUBI and TRMK?
According to the Banks industry distribution chart, First Merchants ranks #808 out of 1527 companies for Pretax Margin %. This places First Merchants in the lower half of its industry. The industry median Pretax Margin % is 34.88. First Merchants' value of 17.24% is 50.6% below this benchmark. Historically, First Merchants' own Pretax Margin % has ranged from 33.80 to 46.31 over the past decade. While the company's 10-year median is 39.46 vs. the industry median of 34.88, 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 Pretax Margin % for a Banks company?
The median Pretax Margin % among Banks companies is 34.88, based on 1,527 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Merchants's current Pretax Margin % of 17.24% is 50.6% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on First Merchants and its competitors. For the Banks industry, the median Pretax Margin % is 34.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Merchants's current Pretax Margin % is 17.24%, which is 56% below median its own 10-year median of 39.46. 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 Pretax Margin % is 17.24%, which is 56% below median its 10-year median of 39.46 and 50.6% below the Banks industry median of 34.88. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For First Merchants (FRME), the current Pretax Margin % is 17.24% 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 $42.60 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:
Pretax Margin %: 17.24% (56% below median its 10-year median of 39.46)
GF Value™: $39.78 vs. price of $42.60 (7.1% above fair value)
Industry Position: 50.6% below the Banks median (#808 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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