IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
© 2026 Blank Capital Research. All rights reserved. System Version: Aegis V8 (God Mode).
Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2794
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Banking
$1.5B
Michael F. Petrie
Merchants Bancorp operates as diversified bank holding company in the United States. The company operates through Multi-family Mortgage Banking, Mortgage Warehousing, and Banking segments. The Banking segment offers a range of financial products and services to consumers and businesses.
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Dates updated upon official exchange announcement.
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = MBIN ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$MBIN Merchants Bancorp | 45 | 31 | 53 | 56 | 9.8x | 7.7x | 9.5% | 1.1% | 0.0% | 22.0% | 17.2% | -8.1% | 1.2% | 770.0x | $1.5B | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
Merchants Bancorp (MBIN) receives a "Reduce" rating with a composite score of 45.0/100. It ranks #2794 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
Sign in to join the discussion.
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for MBIN.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 31 | 42 | -11DRAG |
| MOMENTUM | 56 | 60 | -4NEUTRAL |
| VALUATION | 53 | 74 | -21DRAG |
| INVESTMENT | 27 | 31 | -4NEUTRAL |
| STABILITY | 27 | 18 | +9ALPHA |
| SHORT INT | 36 | 29 | +7ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 1.8% vs WACC 6.8% (spread -5.1%)
GM 0% vs sector 78%, OM 22% vs sector 18%
Capital turnover 0.10x
Rev growth -8%, 9yr history
Interest coverage 0.4x, Net debt/EBITDA 44.8x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Merchants Bancorp (MBIN) as a Reduce with a composite score of 45.0/100 at a current price of $42.64. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Merchants Bancorp holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 45.0/100 places it at rank #2794 in our full universe.
No Moat
High
Poor
Fair Value
Stable competitive position in a defensive sector.
Leverage of 770% D/E amplifies downside risk.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
Merchants Bancorp represents a reduce based on multi-factor quantitative performance.
Merchants Bancorp receives a Reduce rating from our analysis, with a composite score of 45.0/100 and 2 out of 5 stars, ranking #2794 out of 7,333 stocks. MBIN's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
MBIN's quality score of 31/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 9.5% (sector avg: 9.0%), gross margins of 0.0% (sector avg: 77.7%), net margins of 17.2% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
MBIN's value score of 53/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 9.80x, an EV/EBITDA of 7.67x, a P/B ratio of 0.93x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
Merchants Bancorp's investment score of 27/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -8.1% vs. a sector average of 10.7% and a return on assets of 1.1% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
MBIN demonstrates moderate momentum with a score of 56/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at -8.1% year-over-year, while a beta of 0.91 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
MBIN's stability score of 27/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 0.91 and a debt-to-equity ratio of 770.00x (sector avg: 0.5x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
Merchants Bancorp's short interest score of 36/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 770.00x), small-cap liquidity risk. At $1.5B (small-cap), MBIN carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
MBIN offers a modest dividend yield of 1.2%. This compares to a sector average dividend yield of 2.0%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
Merchants Bancorp is a small-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2794 of 7,333 overall (62nd percentile). Key comparisons include ROE of 9.5% exceeding the 9.0% sector median and operating margins of 22.0% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While MBIN currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
Upgrade catalyst
Improvement in Investment (27) would have the largest impact on the composite score.
EV/EBITDA IN LINE WITH SECTOR BENCHMARKS
ROE 6% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 100% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how regional banks stocks fared in Q4, starting with Old National Bank (NASDAQ:ONB).
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how regional banks stocks fared in Q4, starting with BancFirst (NASDAQ:BANF).
Merchants Bancorp (NasdaqCM:MBIN) has been added to multiple major S&P indices, increasing its visibility to index funds and institutional investors. The company has authorized a substantial multi year stock repurchase program, signaling a shift in capital allocation priorities. Management reports improved asset quality and record tangible book value, pointing to changes in the balance sheet profile. These developments arrive alongside insider selling activity, raising fresh questions about...
In early February 2026, S&P Dow Jones Indices added Merchants Bancorp to the S&P SmallCap 600, S&P 1000, S&P Composite 1500, and S&P 600 Financials indices, expanding its presence across key U.S. equity benchmarks. This series of index inclusions could broaden the bank’s institutional shareholder base and reinforce its profile within the listed regional banking universe. We’ll now explore how this broad S&P index inclusion shapes Merchants Bancorp’s investment narrative, including its...
Let’s dig into the relative performance of 1st Source (NASDAQ:SRCE) and its peers as we unravel the now-completed Q4 regional banks earnings season.