Merchants Bancorp Common Stock (MBIN)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Merchants Bancorp as a specialized bank holding company, not a wide-moat franchise. It runs multi-family mortgage banking, mortgage warehousing and banking, with 735 employees and a $2.2B market cap. The filed record shows volatility: in fiscal 2023, the year ended 2023-12-31, net income was $279.2M and diluted EPS $5.64; in fiscal 2024, the year ended 2024-12-31, it was $320.4M and $6.30; in fiscal 2025, the year ended 2025-12-31, it fell to $218.8M and $3.78. That is a sharp drop. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $78.3M and diluted EPS $1.48, versus fiscal Q2 2025, the quarter ended 2025-06-30, when net income was $38.0M and EPS $0.60. So the latest quarter is a strong rebound, but one quarter does not erase a slow five-year profit trend. FairStock classifies it as a SLOW GROWER, with 3.9% annual profit growth over five years, and its FairStock Score is only 42/100. At the close on 2026-10-13, FairStock calculates a P/E of 9.80 and a P/B of 1.22; ROE is 11.73%, while ROCE is 1.33%. For a bank, 1.22 times book can be reasonable if returns are durable, but 11.73% ROE is not exceptional. The 0.90% dividend yield is modest. Piotroski is 5/9, neutral. I cannot judge CET1, net interest margin, efficiency ratio, nonperforming loans, reserves, or a combined ratio because those are not in the data. D/E is also N/A. So the price looks fair rather than compelling. If credit and multifamily mortgage activity hold up, earnings could recover; if not, this slow grower’s book-value premium may compress. I would want more evidence of stable returns before calling it a margin-of-safety bargain.

In plain English: Merchants Bancorp is a small bank holding company that specializes in multifamily mortgage banking, mortgage warehousing, and banking. Its profits have been uneven: fiscal 2025 net income fell from fiscal 2024, while the quarter ended June 30, 2026 was much stronger than the same quarter a year earlier. At $48.83 on 2026-10-13, the stock looks roughly fairly priced against its earnings and book value, not a clear bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer