Latest Ratios: P/E Ratio 12.7x · EV/EBITDA 22.6x · 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 | $2.2B | $1.6B | $1.6B | $1.8B | $1.1B | $1.4B | $795M | $567M | $573M | $444M | — |
| Enterprise Value | $6.0B | $5.4B | $5.5B | $2.2B | $1.8B | $1.5B | $1.9B | $241M | $432M | $141M | — |
| P/E Ratio → | 12.67 | 9.01 | 5.79 | 7.55 | 5.44 | 6.63 | 4.78 | 8.32 | 9.64 | 8.63 | — |
| P/S Ratio | 1.61 | 1.15 | 1.13 | 1.55 | 1.75 | 2.96 | 1.98 | 2.23 | 3.09 | 3.22 | — |
| P/B Ratio | 0.96 | 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 | — | 3.95 | 3.80 | 1.87 | 2.94 | 3.27 | 4.62 | 0.95 | 2.33 | 1.02 | — |
| EV / EBITDA | 22.55 | 20.17 | 12.92 | 6.34 | 6.02 | 4.91 | 7.55 | 2.34 | 5.12 | 1.82 | — |
| EV / EBIT | 22.85 | 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 | 2.7% | 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 | 7.9% | 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 | 2.7% | 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 |
Mortgage market liquidity volatility
Based on recent market data, MBIN trades at a P/B ratio of 1.01, which suggests that investors are pricing the bank as a commodity balance sheet rather than a premium franchise, likely reflecting concerns over the sustainability of its specialized mortgage-heavy earnings model in the current interest rate environment.
The current P/B multiple near parity indicates that the market assigns little to no premium for the bank's specialized HUD-lending expertise. This valuation suggests that investors are discounting the potential for future ROTCE expansion, viewing the bank's earnings as highly cyclical and vulnerable to further mortgage market contraction.
As reported in financial statements, the bank's ROE has compressed to 2.9% in 2026Q1, a trend driven by a stagnant 0.6% NIM and a deteriorating efficiency ratio, which collectively highlight the structural challenges in maintaining profitability within the bank's specialized mortgage banking and warehousing business segments.
The DuPont decomposition reveals that the bank's profitability is currently constrained by both thin net interest margins and a rising efficiency ratio, which has climbed to 23.9%. This combination suggests that the bank is struggling to generate sufficient operating leverage, as non-interest expenses increasingly weigh on the bottom line.
According to quarterly filings, the efficiency ratio has deteriorated from 13.5% in 2024Q1 to 23.9% in 2026Q1, indicating that the bank is losing its ability to control costs relative to revenue, while the NIM remains stubbornly fixed at 0.6% to 0.7% throughout the observed period.
The lack of movement in the NIM suggests that the bank's funding costs are rising in lockstep with asset yields, preventing any margin expansion. The upward trend in the efficiency ratio warrants further investigation, as it may indicate that the bank's variable cost structure is not adjusting quickly enough to the current revenue contraction.
Based on reported figures, the equity-to-assets ratio has remained consistently low, hovering between 0.10 and 0.12 over the last ten quarters, which implies a highly leveraged capital structure that leaves the bank with limited room for error during periods of significant credit or liquidity stress.
This thin capital base suggests that the bank is operating with minimal excess capacity, which may restrict its ability to absorb unexpected losses or pursue growth opportunities. Investors should monitor whether this leverage profile is sustainable if the bank's specialized lending segments experience further credit deterioration.
The P/E ratio is frequently misapplied to MBIN, as it obscures the extreme volatility of gain-on-sale income and MSR valuation adjustments, which can lead to a distorted view of the bank's core earnings power and its true underlying profitability during cyclical mortgage market downturns.
Analysts should instead focus on P/TBV and normalized ROTCE, as these metrics better account for the bank's capital-intensive warehousing operations and the lumpy nature of its fee-based revenue. Relying on P/E may lead to an inaccurate assessment of the bank's valuation, as it fails to capture the impact of non-cash accounting adjustments on reported net income.
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 12.7x. The historical average is 7.3x. This places it at the 100th percentile of its historical range.
Merchants Bancorp's current EV/EBITDA is 22.6x. 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 12.7x. 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 2.70% 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.