Latest Ratios: P/E Ratio 13.8x · EV/EBITDA 23.3x · ROE 9.7%. (2015–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.4B | $1.6B | $1.6B | $1.8B | $1.1B | $1.4B | $795M | $567M | $573M | $444M | — |
| Enterprise Value | $6.2B | $5.4B | $5.5B | $2.2B | $1.8B | $1.5B | $1.9B | $241M | $432M | $141M | — |
| P/E Ratio → | 13.82 | 9.01 | 5.79 | 7.55 | 5.44 | 6.63 | 4.78 | 8.32 | 9.64 | 8.63 | — |
| P/S Ratio | 3.52 | 2.30 | 2.46 | 3.30 | 2.40 | 3.20 | 2.32 | 3.44 | 4.25 | 4.03 | — |
| P/B Ratio | 1.05 | 0.69 | 0.73 | 1.08 | 0.72 | 1.18 | 0.98 | 0.87 | 1.36 | 1.21 | — |
| P/FCF | — | — | — | — | 1.09 | — | — | — | 3.04 | — | — |
| P/OCF | — | — | — | — | 1.08 | — | — | — | 2.81 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.91 | 8.25 | 3.98 | 4.02 | 3.53 | 5.41 | 1.46 | 3.20 | 1.28 | — |
| EV / EBITDA | 23.30 | 20.17 | 12.92 | 6.34 | 6.02 | 4.91 | 7.55 | 2.34 | 5.12 | 1.82 | — |
| EV / EBIT | 23.60 | 20.44 | 13.02 | 6.40 | 6.07 | 4.95 | 7.61 | 2.36 | 5.15 | 1.83 | — |
| EV / FCF | — | — | — | — | 1.83 | — | — | — | 2.29 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 41.3% | 41.3% | 44.4% | 43.7% | 70.2% | 91.6% | 82.4% | 63.2% | 70.2% | 78.1% | 79.5% |
| Operating Margin | 19.3% | 19.3% | 29.2% | 29.3% | 48.4% | 66.1% | 60.7% | 40.1% | 45.3% | 55.9% | 56.4% |
| Net Profit Margin | 16.0% | 16.0% | 22.1% | 23.5% | 36.5% | 49.2% | 45.0% | 30.4% | 33.9% | 39.6% | 34.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.7% | 9.7% | 16.2% | 17.7% | 16.8% | 23.1% | 24.7% | 14.4% | 15.9% | 19.1% | 18.7% |
| ROA | 1.1% | 1.1% | 1.8% | 1.9% | 1.8% | 2.2% | 2.3% | 1.5% | 1.7% | 1.8% | 1.3% |
| ROIC | 3.1% | 3.1% | 6.9% | 10.3% | 9.2% | 10.5% | 12.7% | 10.6% | 12.1% | 16.8% | 17.5% |
| ROCE | 2.3% | 2.3% | 8.6% | 12.9% | 12.9% | 14.4% | 15.6% | 13.6% | 16.1% | 22.4% | 23.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.68 | 1.68 | 1.93 | 0.57 | 0.64 | 1.02 | 1.52 | 0.28 | 0.46 | 0.15 | 0.28 |
| Debt / EBITDA | 14.38 | 14.38 | 10.19 | 2.75 | 3.20 | 3.82 | 5.04 | 1.76 | 2.31 | 0.73 | 1.04 |
| Net Debt / Equity | — | 1.68 | 1.72 | 0.22 | 0.49 | 0.12 | 1.30 | -0.50 | -0.33 | -0.82 | -1.88 |
| Net Debt / EBITDA | 14.32 | 14.32 | 9.07 | 1.08 | 2.43 | 0.46 | 4.31 | -3.16 | -1.67 | -3.91 | -7.06 |
| Debt / FCF | — | — | — | — | 0.74 | — | — | — | -0.75 | — | — |
| Interest Coverage | 0.39 | 0.39 | 0.54 | 0.55 | 1.79 | 9.00 | 4.15 | 1.14 | 1.66 | 2.78 | 2.89 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.17 | 3.17 | 0.05 | 0.13 | 0.06 | 0.15 | 0.06 | 0.15 | 0.21 | 0.26 | 0.32 |
| Quick Ratio | 3.17 | 3.17 | 0.05 | 0.13 | 0.06 | 0.15 | 0.06 | 0.15 | 0.21 | 0.26 | 0.32 |
| Cash Ratio | 0.00 | 0.00 | 0.04 | 0.04 | 0.02 | 0.11 | 0.02 | 0.09 | 0.10 | 0.12 | 0.18 |
| Asset Turnover | — | 0.07 | 0.08 | 0.07 | 0.05 | 0.04 | 0.04 | 0.04 | 0.05 | 0.04 | 0.04 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 3.8% | 3.1% | 2.6% | 3.6% | 2.3% | 3.0% | 3.0% | 1.8% | 1.8% | — |
| Payout Ratio | 27.2% | 27.2% | 16.0% | 17.4% | 17.3% | 13.8% | 13.1% | 22.3% | 16.2% | 14.5% | 18.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.2% | 11.1% | 17.3% | 13.2% | 18.4% | 15.1% | 20.9% | 12.0% | 10.4% | 11.6% | — |
| FCF Yield | — | — | — | — | 91.8% | — | — | — | 32.9% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.4% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | — |
| Total Shareholder Yield | 2.5% | 3.8% | 3.1% | 2.6% | 4.0% | 2.3% | 3.0% | 3.0% | 1.9% | 1.8% | — |
| Shares Outstanding | — | $46M | $45M | $43M | $43M | $43M | $43M | $43M | $43M | $34M | $32M |
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying MBIN stock.
Merchants Bancorp's current P/E ratio is 13.8x. The historical average is 7.3x. This places it at the 100th percentile of its historical range.
Merchants Bancorp's current EV/EBITDA is 23.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.5x.
Merchants Bancorp's return on equity (ROE) is 9.7%. The historical average is 17.8%.
Based on historical data, Merchants Bancorp is trading at a P/E of 13.8x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Merchants Bancorp's current dividend yield is 2.48% with a payout ratio of 27.2%.
Merchants Bancorp has 41.3% gross margin and 19.3% operating margin. Operating margin between 10-20% is typical for established companies.
Merchants Bancorp's Debt/EBITDA ratio is 14.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Revenue contraction and fee volatility
Metrics are mathematically derived from official filings.
Premium Franchise or Commodity Balance Sheet?
MBIN trades at 1.10x book and 14.47x trailing earnings, per market data, implying the market prices its specialized HUD lending franchise at a modest premium to peers, though below its historical highs.
The P/B of 1.10x sits between the peer range of 0.97x (WAFD) and 1.54x (IBCP), suggesting investors recognize MBIN's niche but remain cautious given revenue contraction. The forward P/E of 9.70x implies the market expects earnings normalization, but the lack of a PEG ratio and volatile fee income complicates valuation. The market appears to value MBIN as a hybrid—part bank (book value) and part mortgage originator (earnings power)—which may explain the moderate multiple.
ROE Recovery Tempered by Low Leverage
ROE improved to 3.3% in Q2 2026 from 1.7% a year earlier, per company data, but remains well below peer averages, reflecting a thin NIM of 0.6% and a conservative equity-to-assets ratio of 11%.
DuPont decomposition shows ROE is driven primarily by asset utilization (ROA of 0.4%) and leverage (11% equity-to-assets), with NIM contributing minimally. The efficiency ratio of 28.0% is strong, but the low NIM and fee income volatility (fee income swung from 14.7% of revenue in Q1 to zero in Q2) cap profitability. The record tangible book value per share of $39.93 suggests capital accumulation, but the low ROE indicates the balance sheet is not yet generating returns commensurate with its risk profile.
NIM Stuck at 0.6% Despite Efficiency Gains
Net interest margin held at 0.6% in Q2 2026, unchanged from Q1, as reported in financial statements, while the efficiency ratio improved to 28.0%, indicating cost discipline but persistent asset yield pressure.
The NIM of 0.6% is exceptionally low, likely reflecting the high proportion of low-yielding investment securities (which grew to $20.1B) and the cost of funding warehouse lines. The efficiency ratio improvement from 23.9% to 28.0% suggests better cost control, but the absolute level remains above historical lows (13.5% in Q1 2024), indicating that revenue contraction is outpacing cost savings. The bank's ability to maintain NIM will depend on deposit beta and loan repricing, which are not fully disclosed.
Capital Ratios Stable but Thin
Equity-to-assets held at 11% in Q2 2026, with tangible book value per share reaching a record $39.93, per company data, indicating steady capital accumulation despite asset growth of 11.2% YoY.
The 11% equity-to-assets ratio is below the peer average (e.g., WAFD at 0.60 D/E implies higher equity), suggesting MBIN operates with a thinner capital cushion relative to its asset base. However, the record TBVPS and zero provision in Q2 suggest capital is being built through retained earnings. The low debt-to-equity ratio of 1.68% indicates conservative corporate-level leverage, but off-balance-sheet commitments in mortgage warehousing may understate true leverage. Investors should monitor CET1 ratios, which are not disclosed here, to assess capacity for capital return.
Credit Cycle Turns Favorable
Provision expense fell to zero in Q2 2026 from $15.3M in Q1, and criticized loans hit their lowest level since mid-2024, per the earnings release, marking a fifth consecutive quarter of improving credit quality.
The decline in nonperforming loans, delinquencies, and charge-offs suggests the credit cycle is turning in MBIN's favor, which could support lower future credit costs and potentially drive earnings upside. However, the sustainability of this trend is uncertain given the bank's exposure to commercial real estate and healthcare niches. The zero provision in Q2 may be opportunistic, and investors should watch for any deterioration in the bridge loan portfolio before HUD conversion.
P/E Misleads Due to Provision Volatility
The trailing P/E of 14.47x is distorted by volatile provisions and fee income, as evidenced by Q2 2026 net income boosted by zero provision and zero non-interest income, per financial statements, obscuring underlying earnings power.
For a bank like MBIN, P/E is often misapplied because earnings are subject to lumpy gain-on-sale revenues and credit costs that can swing dramatically quarter to quarter. The forward P/E of 9.70x may better reflect normalized earnings, but it still relies on assumptions about fee income recovery. Instead, investors should use P/TBV (which is not directly provided but implied by TBVPS of $39.93 and price of $54.69, implying ~1.37x) and ROTCE to assess franchise value, as these metrics are less volatile and better capture the bank's capital efficiency.