Merchants Bancorp Depositary Shares Each Representing a 1/40th Interest in a Share of 8.25% Fixed-Rate Reset Series D Non-Cumulative Perpetual Preferred Stock (MBINM)
Slow GrowerFairStock Score: 44/100 — MIXED
Key Financials
| Current Price | $25.58 |
| Market Cap | — |
| P/E Ratio | — |
| ROE | 10.17% |
| Dividend Yield | 8.05% |
| Sector | Financial Services |
Strengths
- Solid return on equity of 10.2% above cost of capital
- Attractive 8.0% dividend yield providing steady income returns
Concerns
- Revenue declining at 4.5% year-over-year signals potential demand weakness or market share loss
- Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
AI Analysis
Merchants Bancorp Depositary Shares Each Representing a 1/40th Interest in a Share of 8.25% Fixed-Rate Reset Series D Non-Cumulative Perpetual Preferred Stock is a micro-cap financial services company. The business generates $585 million in annual revenue with a 10.0% net margin. From a quality standpoint, Merchants shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and adequate 10% ROE. Growth dynamics show revenue growing at -4.5% and profit growth of -29.1%. The 8.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 44/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer