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Merchants Financial GroupMFGI 49 5-Year Yield-on-Cost % is 3.26 as of Jul. 31, 2026, which is 23% below its 10-year median of 4.22. 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 1,251 Banks companies, Merchants Financial Group ranks worse than 60.19% on this metric.
Merchants Financial Group (OTCPK:MFGI) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Merchants Financial Group 5-Year Yield-on-Cost % Related Terms
MFGI vs BFCC, TSBK, MSBC: 5-Year Yield-on-Cost % Comparison
For the Banks - Regional subindustry, Merchants Financial Group's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Merchants Financial Group's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Merchants Financial Group's 5-Year Yield-on-Cost % falls into.
Merchants Financial Group 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Merchants Financial Group (MFGI) has a 5-Year Yield-on-Cost % of 3.26 as of Jul. 31, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Merchants Financial Group and its competitors. This is 23% below median its historical median of 4.22. Over the past decade, Merchants Financial Group's 5-Year Yield-on-Cost % has ranged from 1.53 to 4.97. According to the industry distribution chart, Merchants Financial Group ranks #753 out of 1251 companies in the Banks industry, placing it in the top 60.2%.
Is Merchants Financial Group's 5-Year Yield-on-Cost % too high?
Merchants Financial Group's current 5-Year Yield-on-Cost % of 3.26 is 23% below median its 10-year median of 4.22. Over the past 10 years, this metric has ranged from a low of 1.53 to a high of 4.97. The Banks industry median 5-Year Yield-on-Cost % is 3.84. Merchants Financial Group's value of 3.26 is 15.1% below this industry median. Based on the distribution chart, Merchants Financial Group ranks #753 out of 1251 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 5-Year Yield-on-Cost % compare to BFCC and TSBK?
According to the Banks industry distribution chart, Merchants Financial Group ranks #753 out of 1251 companies for 5-Year Yield-on-Cost %. This places Merchants Financial Group in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.84. Merchants Financial Group's value of 3.26 is 15.1% below this benchmark. Historically, Merchants Financial Group's own 5-Year Yield-on-Cost % has ranged from 1.53 to 4.97 over the past decade. While the company's 10-year median is 4.22 vs. the industry median of 3.84, 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 5-Year Yield-on-Cost % for a Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.84, based on 1,251 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merchants Financial Group's current 5-Year Yield-on-Cost % of 3.26 is 15.1% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Merchants Financial Group and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merchants Financial Group's current 5-Year Yield-on-Cost % is 3.26, which is 23% below median its own 10-year median of 4.22. 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 $41.35 — trading 46% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.26, which is 23% below median its 10-year median of 4.22 and 15.1% below the Banks industry median of 3.84. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Merchants Financial Group (MFGI), the current 5-Year Yield-on-Cost % is 3.26 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 $41.35 is trading 46% above its estimated GF Value™ of $28.33.
GuruFocus considers Merchants Financial Group to be Significantly Overvalued.
Key valuation signals for MFGI:
5-Year Yield-on-Cost %: 3.26 (23% below median its 10-year median of 4.22)
GF Value™: $28.33 vs. price of $41.35 (46% above fair value)
Industry Position: 15.1% below the Banks median (#753 of 1251)
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
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