Farmers & Merchants Bancorp (FMAO) AI Stock Analysis

• Market Cap: $347.80M
• Dividend Yield: 3.18%
• Average Volume (3M): 22.27K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.94
• Revenue Growth: 6.52%
• EPS Growth: 36.77%
• Country: US
• Employees: 482
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.64
• Shares Outstanding: 13,749,944
• 10 Day Avg. Volume: 19,130
• 30 Day Avg. Volume: 22,273
• PEG Ratio: 1.13
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 13.16
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 2.74
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 10.78
• 1Y Price Target: $26.50
• Price Target Upside: 4.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $27.00 ▲(6.72% Upside)

Farmers & Merchants Bancorp's overall score reflects strong financial performance and attractive valuation, offset by bearish technical indicators. The company's solid revenue growth and efficient operations are significant strengths, while the bearish trend in technical analysis suggests caution. The stock's undervaluation and high dividend yield are appealing, but investors should monitor the technical trends closely.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and enhance its product offerings, supporting long-term business sustainability.

Management Quality

The appointment of a seasoned executive to enhance marketing and customer experience demonstrates a strategic focus on strengthening customer relationships and brand value.

Net Interest Margin Improvement

Improved net interest margin reflects efficient asset-liability management, enhancing profitability and providing a buffer against interest rate fluctuations.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth could limit the company's ability to invest in growth opportunities or return capital to shareholders, affecting long-term financial flexibility.

Past High Debt Levels

Previous high debt levels may pose risks if economic conditions change, potentially impacting the company's ability to manage its financial obligations effectively.

Unusually High Net Profit Margin

An unusually high net profit margin suggests potential one-time gains or accounting adjustments, which may not be sustainable, impacting future profitability assessments.

Farmers & Merchants Bancorp Business Overview & Revenue Model

Company Description

Farmers & Merchants Bancorp, Inc. operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking services to individuals and small businesses in northwest Ohio and northeast Indiana. The company offers checking, savings, and time deposit accounts; certificates of deposit; and custodial services for individual retirement and health savings accounts. It also provides commercial, agricultural, and residential mortgage, as well as consumer and credit card lending products; loans for farmland, farm equipment, and livestock; operating loans for seeds, fertilizers, and feeds; home improvement loans; and loans for autos, trucks, recreational vehicles, and motorcycles. In addition, the company offers commercial real estate loans, such as lines of credit and machinery purchase loans. Further, it provides automated teller machine or interactive teller machine services; and online and mobile banking, remote deposit capture or electronic deposit processing, and merchant credit card services. It also offers electronic transaction origination, such as wire and automated clearing house file transmittal services. Farmers & Merchants Bancorp, Inc. was founded in 1897 and is headquartered in Archbold, Ohio.

How the Company Makes Money

Farmers & Merchants Bancorp generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. Key revenue streams include interest income from commercial and consumer loans, residential mortgages, and investment securities. Additionally, the bank earns non-interest income through fees for services such as account maintenance, transaction fees, and wealth management services. The company's financial health is bolstered by its relationships with local businesses and community organizations, which contribute to its deposit base and loan demand. Overall, FMAO's earnings are influenced by interest rate trends, loan growth, and efficient management of operating expenses.

Farmers & Merchants Bancorp Financial Statement Overview

Summary

Farmers & Merchants Bancorp demonstrates solid financial health with strong revenue growth and efficient operations. The balance sheet shows improved leverage, though past high debt levels warrant caution. Cash flow generation is robust, but recent declines in free cash flow growth should be monitored.

Income Statement

Farmers & Merchants Bancorp shows a strong revenue growth trajectory with a TTM revenue growth rate of 1.71%. The gross profit margin is healthy at 57.5%, indicating efficient cost management. However, the net profit margin of 70.4% appears unusually high, suggesting potential one-time gains or accounting adjustments. EBIT and EBITDA margins are solid, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.68 in the TTM, indicating a reduction in leverage compared to previous years. Return on equity is moderate at 9.16%, showing decent profitability. The equity ratio is stable, suggesting a balanced capital structure. However, the high leverage in past years poses a potential risk if not managed carefully.

Cash Flow

Operating cash flow is strong, with a high free cash flow to net income ratio of 93.4%, indicating efficient cash generation. However, the free cash flow growth rate is negative at -19.2%, which could be a concern if it persists. The operating cash flow to net income ratio is not available, limiting a complete assessment of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	184.64M	176.56M	152.05M	113.66M	92.17M	85.26M
Gross Profit	111.42M	98.63M	91.89M	94.70M	81.38M	67.89M
EBITDA	46.91M	38.95M	34.13M	44.49M	34.49M	29.50M
Net Income	31.90M	25.94M	22.79M	32.52M	23.50M	20.09M
Balance Sheet
Total Assets	3.39B	3.36B	3.28B	3.02B	2.64B	1.91B
Cash, Cash Equivalents and Short-Term Investments	273.62M	601.41M	502.13M	478.32M	576.33M	410.74M
Total Debt	245.53M	308.09M	328.67M	226.28M	127.80M	48.10M
Total Liabilities	3.03B	3.03B	2.97B	2.72B	2.34B	1.66B
Stockholders Equity	361.78M	335.21M	316.54M	298.14M	297.17M	249.16M
Cash Flow
Free Cash Flow	23.61M	30.60M	11.22M	38.07M	32.78M	24.16M
Operating Cash Flow	25.92M	32.47M	22.15M	40.67M	34.74M	27.38M
Investing Cash Flow	-129.39M	-44.36M	-194.09M	-389.90M	-265.69M	-177.72M
Financing Cash Flow	-25.01M	46.04M	229.73M	252.82M	236.07M	274.75M

Farmers & Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 25.3 is below the 20-day moving average (MA) of 25.34, above the 50-day MA of 25.07, and above the 200-day MA of 24.49, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 50.94 is Neutral, neither overbought nor oversold. The STOCH value of 71.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMAO.

Farmers & Merchants Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USCB	78 Outperform	$352.07M	12.36	14.96%	2.10%	15.45%	52.68%
WTBA	76 Outperform	$384.89M	11.98	13.14%	4.39%	4.47%	49.09%
SFST	75 Outperform	$456.14M	17.27	7.65%	―	4.74%	86.27%
BWFG	74 Outperform	$376.15M	13.24	10.04%	1.66%	2.52%	85.94%
PDLB	73 Outperform	$394.82M	18.54	4.16%	―	16.03%	145.10%
FMAO	68 Neutral	$347.80M	10.98	8.98%	3.18%	6.52%	36.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%