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Farmers & Merchants Bancorp Inc (FMAO)
NASDAQ:FMAO
US Market

Farmers & Merchants Bancorp (FMAO) AI Stock Analysis

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Farmers & Merchants Bancorp

(NASDAQ:FMAO)

Rating:68Neutral
Price Target:
$27.00
▲(6.80%Upside)
Farmers & Merchants Bancorp's overall score reflects strong financial performance characterized by robust revenue growth and profitability margins. However, technical indicators suggest caution with weak momentum, and valuation metrics indicate the stock is reasonably priced with an attractive dividend yield. The absence of recent earnings call and corporate events data limits additional insights.

Farmers & Merchants Bancorp (FMAO) vs. SPDR S&P 500 ETF (SPY)

Farmers & Merchants Bancorp Business Overview & Revenue Model

Company DescriptionFarmers & Merchants Bancorp (FMAO) is a financial holding company that operates primarily through its subsidiary, Farmers & Merchants State Bank. The company is headquartered in Archbold, Ohio, and serves a variety of communities across Ohio, Indiana, and Michigan. FMAO provides a broad range of banking services to individuals and businesses, including commercial, agricultural, and residential lending, as well as various deposit products and wealth management services.
How the Company Makes MoneyFarmers & Merchants Bancorp generates revenue primarily through the interest income earned on loans and investment securities. The bank collects interest from its portfolio of loans, which includes commercial, agricultural, and residential real estate loans. Additionally, FMAO earns income from the fees associated with its various banking services, such as account maintenance fees, transaction fees, and fees for wealth management services. The bank also benefits from non-interest income sources, including service charges on deposit accounts and gains from the sale of loans or investment securities. Strategic partnerships and community relationships help the company maintain its customer base and expand its market presence, contributing to its overall earnings.

Farmers & Merchants Bancorp Financial Statement Overview

Summary
Farmers & Merchants Bancorp displays strong financial health with robust equity and zero debt, enhancing its stability in the banking sector. Revenue growth has been positive, although recent declines warrant attention. Cash flow management could be improved, but overall profitability and balance sheet strength position the company well for future challenges and opportunities.
Income Statement
75
Positive
The company demonstrates solid revenue growth over the years, with a noticeable increase from 2019 to 2023. Despite a drop in revenue in 2024, net income has improved, indicating better cost management or profitability. EBIT and EBITDA margins have fluctuated, suggesting potential volatility in operational efficiency. Overall, the company shows resilience in maintaining profitability despite a challenging revenue environment.
Balance Sheet
80
Positive
Farmers & Merchants Bancorp displays a strong balance sheet with zero total debt in 2024, enhancing financial stability. The equity base has grown consistently, improving the equity ratio. The company has shown the ability to maintain a healthy Return on Equity, reflecting efficient use of shareholder funds. However, the absence of debt might limit leverage opportunities for expansion.
Cash Flow
68
Positive
Cash flow from operations has been inconsistent, with fluctuations in free cash flow growth over the years. The operating cash flow to net income ratio has been positive, indicating operational profitability. However, the absence of consistent free cash flow growth could highlight challenges in cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue139.74M98.90M95.69M100.37M84.83M74.87M
Gross Profit123.13M98.63M95.69M100.37M84.83M74.87M
EBITDA35.65M38.95M34.13M40.48M30.24M29.50M
Net Income27.53M25.94M22.79M32.52M23.50M20.09M
Balance Sheet
Total Assets3.39B3.36B3.28B3.02B2.64B1.91B
Cash, Cash Equivalents and Short-Term Investments611.18M601.41M503.42M478.32M180.82M410.74M
Total Debt307.58M308.09M328.67M226.28M127.80M17.86M
Total Liabilities3.04B3.03B2.97B2.72B2.34B1.66B
Stockholders Equity344.60M335.21M316.54M298.14M297.17M249.16M
Cash Flow
Free Cash Flow38.87M30.60M11.22M38.07M32.78M24.16M
Operating Cash Flow42.90M32.47M22.15M40.67M34.74M27.38M
Investing Cash Flow-109.90M-45.85M-194.09M-389.90M-265.69M-177.72M
Financing Cash Flow54.25M46.04M229.73M252.82M236.07M274.75M

Farmers & Merchants Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.28
Price Trends
50DMA
24.29
Positive
100DMA
24.29
Positive
200DMA
26.34
Negative
Market Momentum
MACD
0.20
Negative
RSI
58.35
Neutral
STOCH
86.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMAO, the sentiment is Positive. The current price of 25.28 is above the 20-day moving average (MA) of 24.02, above the 50-day MA of 24.29, and below the 200-day MA of 26.34, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 86.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMAO.

Farmers & Merchants Bancorp Risk Analysis

Farmers & Merchants Bancorp disclosed 27 risk factors in its most recent earnings report. Farmers & Merchants Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Farmers & Merchants Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$368.11M10.479.07%2.87%9.51%-2.12%
76
Outperform
$366.36M29.874.21%2.50%69.35%-65.75%
75
Outperform
$327.31M6.6715.25%3.43%11.43%10.33%
73
Outperform
$318.77M17.606.04%16.29%-12.22%
70
Neutral
$303.63M9.0711.82%2.84%7.35%-4.60%
68
Neutral
$347.34M12.738.18%3.50%11.91%25.60%
67
Neutral
$16.67B11.469.71%3.91%11.61%-9.60%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FMAO
Farmers & Merchants Bancorp
25.28
3.20
14.49%
CWBC
Community West Bancshares
19.51
1.65
9.24%
CIVB
Civista Bancshares
23.20
8.61
59.01%
NECB
Northeast Community Bancorp
23.24
5.91
34.10%
FSBW
FS Bancorp
39.38
5.03
14.64%
PBFS
Pioneer Bancorp
12.03
1.53
14.57%

Farmers & Merchants Bancorp Corporate Events

Executive/Board Changes
Farmers & Merchants Bancorp Appoints New Board Member
Neutral
Jun 25, 2025

On June 24, 2025, Farmers & Merchants Bancorp, Inc. appointed Ahmed Alomari to its Board of Directors and that of its subsidiary, The Farmers & Merchants State Bank, effective July 29, 2025. Mr. Alomari will receive standard compensation for board service, and his committee assignments are yet to be determined. The announcement highlights the company’s practice of engaging in standard lending activities with its directors and confirms no significant transactions with Mr. Alomari or his family.

The most recent analyst rating on (FMAO) stock is a Hold with a $26.50 price target. To see the full list of analyst forecasts on Farmers & Merchants Bancorp stock, see the FMAO Stock Forecast page.

Executive/Board Changes
Jo Ellen Hornish Resigns from Farmers & Merchants Bancorp Board
Neutral
May 20, 2025

On May 20, 2025, Jo Ellen Hornish resigned from the Board of Directors of Farmers & Merchants Bancorp, Inc. and its wholly-owned subsidiary, The Farmers & Merchants State Bank. Mrs. Hornish, who has been a board member since 2013 and served on the Audit and Corporate Governance and Nominating Committees, announced her resignation following the board meeting on the same day.

The most recent analyst rating on (FMAO) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Farmers & Merchants Bancorp stock, see the FMAO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025