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Farmers & Merchants Bancorp
(NASDAQ:FMAO)
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Rating:71Outperform
Price Target:
$34.00
▲(26.96% Upside)
Action:Reiterated
Date:07/08/26
The score is driven primarily by improving financial fundamentals (strong recent revenue and profit trends with better leverage) and supportive technical momentum (price above key moving averages with positive MACD). Valuation is also constructive with a reasonable P/E and ~3% dividend yield. The main constraints are prior margin compression and variable cash-flow/FCF consistency, while the recent corporate event is positive but limited in impact.
Positive Factors
Revenue and Profit Momentum
Sharp TTM revenue growth alongside rising net income demonstrates the bank's ability to expand earning assets or fee streams and convert that growth into profits. Sustained higher top-line and improved earnings increase internal capital generation, supporting lending capacity, reserves, and strategic investments over the medium term.
Negative Factors
Margin Compression from Prior Peaks
Material erosion from prior peak margins indicates persistent pressure on profitability, whether from narrower net interest margins, higher funding costs, or mix shifts. Lower sustainable margins reduce return on capital and limit the bank's ability to generate excess earnings during normal cycles without structural improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profit Momentum
Sharp TTM revenue growth alongside rising net income demonstrates the bank's ability to expand earning assets or fee streams and convert that growth into profits. Sustained higher top-line and improved earnings increase internal capital generation, supporting lending capacity, reserves, and strategic investments over the medium term.
Read all positive factors
Farmers & Merchants Bancorp (FMAO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$424.61M
Dividend Yield3.18%
Average Volume (3M)22.27K
Price to Earnings (P/E)11.6
Beta (1Y)0.88
Revenue Growth6.00%
EPS Growth31.08%
CountryUS
Employees482
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.61
Shares Outstanding13,768,188
10 Day Avg. Volume19,130
30 Day Avg. Volume22,273
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.92
Price to Sales (P/S)1.79
P/FCF Ratio9.80
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue2.55
Enterprise Value/Gross Profit4.02
Enterprise Value/Ebitda9.14
Forecast
1Y Price Target
$32.00Price Target Upside19.49% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.84
Revenue Forecast (FY)$133.95M
Farmers & Merchants Bancorp Business Overview & Revenue Model
Company Description
Farmers & Merchants Bancorp, Inc. functions as the holding company for The Farmers & Merchants State Bank, offering a broad spectrum of commercial banking solutions. The bank serves individual customers and small businesses throughout northwest Oh...
How the Company Makes Money
FMAO makes money primarily through its banking subsidiary by (1) earning net interest income and (2) generating noninterest income, while managing operating costs and credit risk.
1) Net interest income (core earnings driver): The bank gathers fu...
Farmers & Merchants Bancorp Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 191.30M | 189.09M | 176.56M | 152.05M | 113.66M | 92.17M |
| Gross Profit | 121.44M | 117.75M | 98.63M | 91.89M | 94.70M | 81.38M |
| EBITDA | 53.34M | 49.51M | 38.95M | 34.13M | 44.49M | 34.49M |
| Net Income | 35.94M | 33.31M | 25.94M | 22.79M | 32.52M | 23.50M |
Balance Sheet | ||||||
| Total Assets | 3.49B | 3.43B | 3.36B | 3.28B | 3.02B | 2.64B |
| Cash, Cash Equivalents and Short-Term Investments | 357.22M | 309.46M | 601.41M | 502.13M | 478.32M | 576.33M |
| Total Debt | 268.71M | 300.03M | 308.09M | 328.67M | 226.28M | 127.80M |
| Total Liabilities | 3.11B | 3.06B | 3.03B | 2.97B | 2.72B | 2.34B |
| Stockholders Equity | 375.95M | 370.86M | 335.21M | 316.54M | 298.14M | 297.17M |
Cash Flow | ||||||
| Free Cash Flow | 31.96M | 34.62M | 30.60M | 11.22M | 38.07M | 32.78M |
| Operating Cash Flow | 34.01M | 36.39M | 32.47M | 22.15M | 40.67M | 34.74M |
| Investing Cash Flow | -91.34M | -138.35M | -44.36M | -194.09M | -389.90M | -265.69M |
| Financing Cash Flow | 57.77M | 23.33M | 46.04M | 229.73M | 252.82M | 236.07M |
Farmers & Merchants Bancorp Technical Analysis
Positive
26.78
Price Trends
28.19
Positive
27.14
Positive
26.03
Positive
Market Momentum
0.80
Negative
60.10
Neutral
55.92
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 26.78 is below the 20-day moving average (MA) of 29.46, below the 50-day MA of 28.19, and above the 200-day MA of 26.03, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 60.10 is Neutral, neither overbought nor oversold. The STOCH value of 55.92 is Neutral, 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 35 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $465.95M | 11.34 | 13.31% | 1.66% | 7.75% | 217.94% | |
74 Outperform | $459.08M | 12.74 | 13.67% | 4.39% | 0.02% | 34.44% | |
74 Outperform | $372.58M | 13.90 | 12.69% | 2.10% | 4.89% | 3.63% | |
71 Outperform | $424.61M | 11.61 | 9.85% | 3.18% | 6.00% | 31.08% | |
69 Neutral | $579.03M | 14.15 | 9.65% | ― | 6.94% | 90.91% | |
69 Neutral | $487.87M | 15.20 | 5.85% | ― | 13.13% | 119.50% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FMAO
Farmers & Merchants Bancorp
30.30
4.60
17.88%
SFST
Southern First Bancshares
61.12
21.53
54.38%
WTBA
West Bancorporation
26.50
6.66
33.58%
BWFG
Bankwell Financial Group
57.40
20.33
54.86%
PDLB
Ponce Financial Group Inc
20.06
5.70
39.69%
USCB
USCB Financial Holdings, Inc. Class A
20.23
3.57
21.39%
Farmers & Merchants Bancorp Corporate Events
Business Operations and StrategyExecutive/Board Changes
Farmers & Merchants Bancorp Appoints New Board Director
Positive
Jul 7, 2026
On June 30, 2026, Farmers Merchants Bancorp, Inc. appointed Gregory R. Allen to fill a vacancy on its Board of Directors, with his first board meeting scheduled for September 29, 2026. His appointment reflects the company’s ongoing efforts ...
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.