Farmers & Merchants Bancorp (FMAO) AI Stock Analysis

• Market Cap: $332.92M
• Dividend Yield: 3.37%
• Average Volume (3M): 21.38K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.10
• Revenue Growth: 11.91%
• EPS Growth: 25.59%
• Country: US
• Employees: 473
• Sector: Financial
• Sector Strength: 88
• Industry: Banks - Regional
• EPS (TTM): 1.99
• Shares Outstanding: 13,700,311
• 10 Day Avg. Volume: 23,281
• 30 Day Avg. Volume: 21,375
• PEG Ratio: 0.48
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.68
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $27.50
• Price Target Upside: 5.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Farmers & Merchants Bancorp's overall score reflects its strong financial health and attractive valuation. The robust balance sheet with zero debt and consistent equity growth are significant strengths. While the technical indicators suggest caution due to recent price trends, the stock's valuation and dividend yield provide a compelling investment case, balancing the risks highlighted by the moderate technical analysis score.

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 the traditional banking model of collecting deposits and providing loans. Interest income from loans, including personal, commercial, and agricultural loans, constitutes the largest portion of the company's revenue. Additionally, the bank earns money through interest on securities it holds as investments. Non-interest income, which includes fees generated from services such as wealth management, mortgage banking, and transaction fees, also contributes to its earnings. The bank's profitability is influenced by interest rate fluctuations, credit risk management, and its ability to attract deposits and provide competitive loan products.

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

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

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

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
98.90M	95.69M	100.37M	84.83M	74.87M
	Gross Profit
98.90M	95.69M	100.37M	84.83M	74.87M
	EBIT
-116.61M	28.35M	58.71M	29.50M	25.21M
	EBITDA
0.00	0.00	44.49M	34.49M	29.50M
	Net Income Common Stockholders
25.94M	22.79M	32.52M	23.50M	20.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
601.41M	499.39M	478.32M	576.33M	410.74M
	Total Assets
3.36B	3.28B	3.02B	2.64B	1.91B
	Total Debt
280.87M	300.45M	172.07M	98.54M	17.86M
	Net Debt
103.54M	156.79M	84.54M	-47.86M	-85.07M
	Total Liabilities
3.03B	2.97B	2.72B	98.54M	17.86M
	Stockholders Equity
335.21M	316.54M	298.14M	297.17M	249.16M
Cash Flow		Free Cash Flow
30.60M	11.22M	38.07M	32.78M	24.16M
	Operating Cash Flow
32.47M	22.15M	40.67M	34.74M	27.38M
	Investing Cash Flow
-44.36M	-194.09M	-389.90M	-265.69M	-177.72M
	Financing Cash Flow
46.04M	229.73M	252.82M	236.07M	274.75M

Farmers & Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: 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 26.17 is above the 20-day moving average (MA) of 22.86, above the 50-day MA of 23.66, and below the 200-day MA of 26.48, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 71.20 is Negative, neither overbought nor oversold. The STOCH value of 90.38 is Negative, 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
FSBW	76 Outperform	$303.26M	8.99	11.87%	2.75%	7.52%	-4.22%
NECB	76 Outperform	$319.17M	6.50	15.25%	2.15%	11.43%	10.33%
CIVB	75 Outperform	$348.44M	9.92	9.07%	2.89%	9.51%	-2.12%
PBFS	70 Outperform	$290.07M	15.50	6.20%	―	27.04%	6.52%
FMAO	68 Neutral	$332.92M	12.22	8.20%	3.37%	11.91%	25.59%
Sector *	63 Neutral	$12.46B	9.56	8.14%	17044.64%	12.63%	-4.25%
CWBC	57 Neutral	$333.57M	27.20	4.21%	2.74%	69.35%	-65.75%

Farmers & Merchants Bancorp Corporate Events

Farmers & Merchants Bancorp Board Member Retirement

Eugene N. Burkholder retired from the Board of Directors of Farmers & Merchants Bancorp and its subsidiary, Farmers & Merchants State Bank, effective December 17, 2024, due to mandatory retirement provisions. His departure leads to the reduction of the Board members to eleven, reflecting a strategic decision by the Board.