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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Merchants Financial Group has the Financial Strength Rank of 4.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Merchants Financial Group's interest coverage with the available data.
Merchants Financial Group's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.22.
Altman Z-Score does not apply to banks and insurance companies.
Merchants Financial Group (OTCPK:MFGI) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Merchants Financial Group has the Financial Strength Rank of 4.
Merchants Financial Group Financial Strength Related Terms
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Merchants Financial Group Inc has enough cash to cover all of its debt. Its financial situation is stable.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* 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 (MFGI) has a Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Merchants Financial Group and its competitors. This is near median its historical median of 4.00. Over the past decade, Merchants Financial Group's Financial Strength has ranged from 3.00 to 5.00.
Is Merchants Financial Group's Financial Strength too high?
Merchants Financial Group's current Financial Strength of 4 is near median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 5.00. 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 Financial Strength compare to BFCC and TSBK?
Merchants Financial Group's Financial Strength of 4 can be compared against companies in the Banks industry. Historically, Merchants Financial Group's own Financial Strength has ranged from 3.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Banks company?
A good Financial Strength depends on the Banks industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Merchants Financial Group and its competitors. Merchants Financial Group's current Financial Strength is 4, which is near median its own 10-year median of 4.00. 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 $29.30, compared to a current price of $43.00 — trading 46.8% above its estimated fair value. The current Financial Strength is 4, which is near median its 10-year median of 4.00. Merchants Financial Group's overall GF Score™ is 49/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Merchants Financial Group (MFGI), the current Financial Strength is 4 as of Jun. 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 $43.00 is trading 46.8% above its estimated GF Value™ of $29.30.
GuruFocus considers Merchants Financial Group to be Significantly Overvalued.
Key valuation signals for MFGI:
Financial Strength: 4 (near median its 10-year median of 4.00)
GF Value™: $29.30 vs. price of $43.00 (46.8% above fair value)
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
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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