Farmers & Merchants Bancorp (FMAO) AI Stock Analysis

• Market Cap: $344.61M
• Dividend Yield: 3.5%
• Average Volume (3M): 25.70K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.15
• Revenue Growth: 8.62%
• EPS Growth: 37.01%
• Country: US
• Employees: 482
• Sector: Financial
• Sector Strength: 69
• Industry: Banks - Regional
• EPS (TTM): 0.56
• Shares Outstanding: 13,724,036
• 10 Day Avg. Volume: 25,811
• 30 Day Avg. Volume: 25,698
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 4.96
• Enterprise Value/Ebitda: 12.37
• 1Y Price Target: $26.50
• Price Target Upside: -0.93% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: $30.00 ▲(12.15% Upside)

Farmers & Merchants Bancorp demonstrates a strong financial foundation with consistent revenue growth and efficient cash flow management. The stock's technical indicators suggest bullish momentum, and its valuation is attractive with a reasonable P/E ratio and a solid dividend yield. These factors collectively contribute to a robust overall stock score.

Farmers & Merchants Bancorp Business Overview & Revenue Model

Company Description

Farmers & Merchants Bancorp (FMAO) is a financial holding company headquartered in Ohio, primarily engaged in providing a wide range of banking and financial services through its subsidiary, Farmers & Merchants State Bank. The company operates in the community banking sector, offering products and services that include personal and commercial banking, mortgage lending, investment services, and wealth management. FMAO focuses on serving local businesses and consumers, emphasizing personalized service and community engagement.

How the Company Makes Money

Farmers & Merchants Bancorp generates revenue primarily through interest income from loans and mortgages, as well as fees from various banking services. The main revenue streams include interest earned on commercial and consumer loans, residential mortgages, and investment securities. Additionally, the bank earns non-interest income through service fees, account maintenance fees, and wealth management services. The company may also benefit from strategic partnerships with local businesses and community organizations, which can enhance customer acquisition and retention, thereby contributing to its overall earnings. Overall, the bank's focus on community-based banking allows it to cultivate strong relationships with clients, leading to sustained revenue growth.

Farmers & Merchants Bancorp Financial Statement Overview

Summary

Farmers & Merchants Bancorp exhibits strong financial performance with consistent revenue growth, efficient profitability margins, and solid cash flow management. The company's financial stability is reinforced by a strong equity base and manageable leverage, though increasing debt levels and fluctuating investing cash flows warrant close monitoring.

Income Statement

Farmers & Merchants Bancorp shows a solid revenue growth with a consistent increase in total revenue over the years. The gross profit margin and net profit margin are healthy, indicating efficient cost management. The EBIT and EBITDA margins reflect strong operational performance. Overall, the company demonstrates robust income generation capabilities with steady growth, although the net profit margin saw a slight dip in the TTM period.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio, suggesting manageable leverage. The return on equity is respectable, indicating effective use of shareholder funds to generate profits. The equity ratio is relatively strong, showcasing a solid equity base supporting the total assets. However, the increase in total debt over time suggests rising financial obligations, which could be a risk factor in the future.

Cash Flow

Farmers & Merchants Bancorp demonstrates strong cash flow management, with positive free cash flow growth and a solid operating cash flow to net income ratio. These metrics indicate the company's ability to generate cash effectively from operations. The free cash flow to net income ratio is also favorable, highlighting efficient capital expenditure management. However, fluctuations in investing cash flow could pose potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	179.51M	176.56M	152.05M	113.66M	92.17M	85.26M
Gross Profit	101.93M	98.63M	91.89M	94.70M	81.38M	67.89M
EBITDA	40.88M	38.95M	34.13M	44.49M	34.49M	29.50M
Net Income	27.53M	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	365.63M	601.41M	503.42M	478.32M	576.33M	410.74M
Total Debt	307.58M	308.09M	328.67M	226.28M	127.80M	48.10M
Total Liabilities	3.04B	3.03B	2.97B	2.72B	2.34B	1.66B
Stockholders Equity	344.60M	335.21M	316.54M	298.14M	297.17M	249.16M
Cash Flow
Free Cash Flow	39.96M	30.60M	11.22M	38.07M	32.78M	24.16M
Operating Cash Flow	42.00M	32.47M	22.15M	40.67M	34.74M	27.38M
Investing Cash Flow	-110.99M	-44.36M	-194.09M	-389.90M	-265.69M	-177.72M
Financing Cash Flow	54.25M	46.04M	229.73M	252.82M	236.07M	274.75M

Farmers & Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.75
• 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 26.75 is above the 20-day moving average (MA) of 24.90, above the 50-day MA of 25.23, and above the 200-day MA of 25.97, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 62.54 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
FMAO	78 Outperform	$344.61M	11.76	8.64%	3.50%	8.62%	37.01%
CWBC	77 Outperform	$385.86M	14.52	7.23%	2.38%	48.19%	36.25%
CIVB	76 Outperform	$384.52M	7.88	10.02%	3.21%	6.20%	18.80%
NECB	75 Outperform	$302.82M	6.44	14.25%	3.88%	4.02%	-0.62%
PBFS	73 Outperform	$319.22M	15.31	6.98%	―	31.28%	23.21%
FSBW	72 Outperform	$303.09M	9.49	11.31%	3.33%	5.10%	-7.22%
Sector *	68 Neutral	$17.56B	11.61	10.34%	3.76%	9.69%	0.41%

Farmers & Merchants Bancorp Corporate Events

Farmers & Merchants Bancorp Announces Investor Meeting Plans

Farmers & Merchants Bancorp, Inc. announced that it plans to use certain materials in upcoming meetings with investors and analysts. The information is part of a Current Report on Form 8-K and is not considered filed under the Securities and Exchange Act of 1934, nor is it subject to the liabilities of that section.

Farmers & Merchants Bancorp Appoints New Board Member

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.