Merchants Bancorp cash flow to debt ratio of -3.89% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Merchants Bancorp's free cash flow has increased -80.05% from $-853.67M last year to $-170.30M, signaling increasing performance

Merchants Bancorp's debt to equity ratio is 1.79, which means that the company's assets are unhealthy financed, signaling financial risk.

Merchants Bancorp's debt has decreased relative to shareholder equity from 1.93 last year to 1.79 today, signaling strengthened financials

Merchants Bancorp has a net debt to EBITDA ratio of 11.08x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Merchants Bancorp earns at least as much interest as it pays. Interest obligations are fully covered.

Merchants Bancorp's profit margin has decreased (7.35%) in the last year from 22.14% to 20.51%, signaling decreasing performance

Merchants Bancorp's short-term assets of $11.91B exceed its short-term liabilities of $3.76B

Merchants Bancorp's return on assets of 1.27% is lower than the 5.00% threshold, indicating inefficient asset utilization

Merchants Bancorp's return on equity of 11.64%, is lower than 15.00%, indicating bad performance

Merchants Bancorp's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Merchants Bancorp had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Merchants Bancorp has negative free cash flow, indicating the company is burning cash rather than generating it

Merchants Bancorp has negative free cash flow, indicating cash burn

Merchants Bancorp's yearly earnings has decreased 31.72% since last year from $320.39M to $218.77M, signaling decreasing performance

Merchants Bancorp's yearly revenue has decreased 5.65% since last year from $1.45B to $1.37B, signaling decreasing performance

ROIC 1.09% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Merchants Bancorp's 3-year revenue CAGR of 31.38% is positive, indicating growing revenue over the past 3 years

Merchants Bancorp had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Merchants Bancorp had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Merchants Bancorp has insufficient data to evaluate this check.

Merchants Bancorp has an earnings yield of 10.83%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Merchants Bancorp is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Merchants Bancorp has an EV/EBITDA ratio of 20.36x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Merchants Bancorp is undervalued relative to its fair value price of 161.48 based on Earnings Fair Value model

Merchants Bancorp's earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

Merchants Bancorp has a price-to-book ratio of 1.04x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Merchants Bancorp has a price-to-sales ratio of 1.89x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue