Farmers & Merchants Bancorp (FMAO) AI Stock Analysis

• Market Cap: $328.00M
• Dividend Yield: 3.87%
• Average Volume (3M): 22.27K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.13
• 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: 13,724,036
• 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: 1.54
• Enterprise Value/Revenue: 2.78
• Enterprise Value/Gross Profit: 4.76
• Enterprise Value/Ebitda: 11.64
• 1Y Price Target: $26.50
• Price Target Upside: 15.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $27.00 ▲(17.34% Upside)

Farmers & Merchants Bancorp's overall stock score reflects its solid financial performance and reasonable valuation. The company's consistent revenue growth and stable profitability margins are significant strengths. However, the technical analysis indicates a neutral to slightly bearish trend, which tempers the overall score. The attractive dividend yield adds to the stock's appeal, but careful management of costs and debt remains crucial for sustained performance.

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 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 demonstrates solid financial health with consistent revenue growth and stable profitability margins. The balance sheet shows improved leverage management, though past high debt levels warrant caution. Cash flow generation is strong, but the recent decline in free cash flow growth needs attention to maintain liquidity.

Income Statement

Farmers & Merchants Bancorp has shown consistent revenue growth with a TTM revenue growth rate of 1.38%. The gross profit margin is healthy at 58.42%, and the net profit margin is solid at 16.24%. EBIT and EBITDA margins are stable at 20.38% and 23.88%, respectively, indicating efficient operations. However, the decline in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.72 in the TTM, indicating better leverage management compared to previous years. Return on equity is moderate at 8.66%, reflecting decent profitability. The equity ratio stands at 10.48%, suggesting a stable capital structure. However, the relatively high debt levels in prior years pose a risk if not managed carefully.

Cash Flow

Operating cash flow and free cash flow are positive, with a free cash flow to net income ratio of 93.44%, indicating strong cash generation relative to earnings. However, the free cash flow growth rate has declined by 21.94% in the TTM, which could impact future liquidity if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	181.97M	176.56M	152.05M	113.66M	92.17M	85.26M
Gross Profit	106.30M	98.63M	91.89M	94.70M	81.38M	67.89M
EBITDA	43.46M	38.95M	34.13M	44.49M	34.49M	29.50M
Net Income	29.56M	25.94M	22.79M	32.52M	23.50M	20.09M
Balance Sheet
Total Assets	3.35B	3.36B	3.28B	3.02B	2.64B	1.91B
Cash, Cash Equivalents and Short-Term Investments	518.70M	601.41M	503.42M	478.32M	576.33M	410.74M
Total Debt	250.88M	308.09M	328.67M	226.28M	127.80M	48.10M
Total Liabilities	2.99B	3.03B	2.97B	2.72B	2.34B	1.66B
Stockholders Equity	350.79M	335.21M	316.54M	298.14M	297.17M	249.16M
Cash Flow
Free Cash Flow	31.20M	30.60M	11.22M	38.07M	32.78M	24.16M
Operating Cash Flow	33.39M	32.47M	22.15M	40.67M	34.74M	27.38M
Investing Cash Flow	-117.82M	-44.36M	-194.09M	-389.90M	-265.69M	-177.72M
Financing Cash Flow	-20.41M	46.04M	229.73M	252.82M	236.07M	274.75M

Farmers & Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMAO, the sentiment is Negative. The current price of 23.01 is below the 20-day moving average (MA) of 24.27, below the 50-day MA of 25.17, and below the 200-day MA of 24.61, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 33.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FMAO.

Farmers & Merchants Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USCB	―	$350.57M	11.53	14.96%	2.00%	15.45%	52.68%
WTBA	―	$361.18M	11.40	13.14%	5.04%	4.47%	49.09%
BWFG	―	$338.79M	12.18	10.08%	1.82%	2.52%	86.70%
FMAO	―	$328.00M	10.40	9.01%	3.87%	6.52%	36.77%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFST	―	$358.89M	13.61	7.65%	―	4.74%	86.27%
PDLB	―	$340.82M	15.99	4.16%	―	16.03%	145.10%

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.

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.

Farmers & Merchants Bancorp Faces Challenges in Quantitative Model Reliance for Risk Management

Farmers & Merchants Bancorp, Inc. faces significant risks due to its reliance on quantitative modeling for critical business decisions. These models, while essential for estimating financial values and managing risks, have inherent limitations stemming from their dependence on assumptions and historical data that may not fully capture current market conditions. The rapid evolution of markets and potential errors in data or model design can lead to inaccurate results, adversely affecting risk management and capital planning. Consequently, the company may provide misleading information to the public or regulators, highlighting the need for robust strategies to manage these modeling risks effectively.

Farmers & Merchants Bancorp Reports Strong Q2 2025 Results

Farmers & Merchants Bancorp, Inc. is a community bank providing commercial and retail banking services across Ohio, Indiana, and Michigan. The company has reported a strong financial performance for the second quarter of 2025, marking 89 consecutive quarters of profitability. Key highlights include a 35.7% increase in net income to $7.7 million and a net interest margin expansion to 3.22%. Total loans and deposits both saw a 2.6% increase, while asset quality remained robust with nonperforming loans at $3.7 million. The company’s efficiency ratio improved significantly, reflecting better cost management.