Merchants Bancorp Profit Margin vs. Net Income
| MBINM Stock | USD 26.25 0.21 0.81% |
Merchants Bancorp Net Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Net Profit Margin | 0.38 | 0.5344 |
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| Operating Profit Margin | 0.75 | 0.6658 |
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| Pretax Profit Margin | 0.54 | 0.6658 |
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| Return On Assets | 0.0126 | 0.0165 |
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| Return On Equity | 0.14 | 0.1642 |
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For Merchants Bancorp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Merchants Bancorp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Merchants Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Merchants Bancorp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Merchants Bancorp over time as well as its relative position and ranking within its peers.
Merchants |
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merchants Bancorp. If investors know Merchants will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merchants Bancorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.30) | Dividend Share 0.35 | Revenue Per Share 13.735 | Quarterly Revenue Growth (0.05) | Return On Assets 0.0172 |
The market value of Merchants Bancorp is measured differently than its book value, which is the value of Merchants that is recorded on the company's balance sheet. Investors also form their own opinion of Merchants Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Merchants Bancorp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merchants Bancorp's market value can be influenced by many factors that don't directly affect Merchants Bancorp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Merchants Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Merchants Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merchants Bancorp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Merchants Bancorp Net Income vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Merchants Bancorp's current stock value. Our valuation model uses many indicators to compare Merchants Bancorp value to that of its competitors to determine the firm's financial worth. Merchants Bancorp is considered to be number one stock in profit margin category among its peers. It also is considered to be number one stock in net income category among its peers making up about 561,274,372 of Net Income per Profit Margin. At this time, Merchants Bancorp's Net Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Merchants Bancorp by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Merchants Net Income vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Merchants Bancorp |
| = | 0.50 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Merchants Bancorp |
| = | 279.23 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Merchants Net Income Comparison
Merchants Bancorp is currently under evaluation in net income category among its peers.
Merchants Bancorp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Merchants Bancorp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Merchants Bancorp will eventually generate negative long term returns. The profitability progress is the general direction of Merchants Bancorp's change in net profit over the period of time. It can combine multiple indicators of Merchants Bancorp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -2.5 M | -2.6 M | |
| Operating Income | 347.9 M | 192.1 M | |
| Income Before Tax | 347.9 M | 189.8 M | |
| Total Other Income Expense Net | -38 M | -36.1 M | |
| Net Income | 279.2 M | 142.1 M | |
| Income Tax Expense | 68.7 M | 47.6 M | |
| Net Interest Income | 419.2 M | 266.2 M | |
| Interest Income | 947.5 M | 994.9 M | |
| Net Income From Continuing Ops | 258.9 M | 188.2 M | |
| Net Income Applicable To Common Shares | 222.8 M | 152.6 M | |
| Change To Netincome | 393.5 M | 413.1 M | |
| Net Income Per Share | 6.46 | 6.78 | |
| Income Quality | (1.28) | (1.34) | |
| Net Income Per E B T | 0.80 | 0.58 |
Merchants Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Merchants Bancorp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Merchants Bancorp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Merchants Bancorp's important profitability drivers and their relationship over time.
Use Merchants Bancorp in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Merchants Bancorp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Merchants Bancorp will appreciate offsetting losses from the drop in the long position's value.Merchants Bancorp Pair Trading
Merchants Bancorp Pair Trading Analysis
The ability to find closely correlated positions to Merchants Bancorp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Merchants Bancorp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Merchants Bancorp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Merchants Bancorp to buy it.
The correlation of Merchants Bancorp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Merchants Bancorp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Merchants Bancorp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Merchants Bancorp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Merchants Bancorp position
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Check out Correlation Analysis. To learn how to invest in Merchants Stock, please use our How to Invest in Merchants Bancorp guide.You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
To fully project Merchants Bancorp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Merchants Bancorp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Merchants Bancorp's income statement, its balance sheet, and the statement of cash flows.