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Farmers & Merchants Bancorp
(NASDAQ:FMAO)
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Rating:75Outperform
Price Target:
$39.00
▲(26.01% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by solid financial performance (improving margins and strong free cash flow conversion) and supportive technical uptrend (price above all key moving averages). Valuation is also reasonable with a modest dividend. The key risk weighing on the score is the notable TTM revenue contraction, with only minor incremental impact from the board appointment event.
Positive Factors
Cash generation
Strong and growing free cash flow (TTM ~$43M, up ~34.7%) indicates durable internal funding for dividends, technology and branch investments, and loan growth without heavy reliance on external financing. FCF tracking ~94% of net income shows earnings quality and flexibility over months to years.
Negative Factors
Revenue contraction
A sharp TTM revenue decline (~-16.9%) after prior growth is a durable worry: persistent top-line weakness can erode operating leverage, limit reinvestment capacity, and make current margin gains harder to sustain. If loan volumes, fee income or securities gains don’t rebound, earnings upside may be constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Strong and growing free cash flow (TTM ~$43M, up ~34.7%) indicates durable internal funding for dividends, technology and branch investments, and loan growth without heavy reliance on external financing. FCF tracking ~94% of net income shows earnings quality and flexibility over months to years.
Read all positive factors
Farmers & Merchants Bancorp (FMAO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$459.47M
Dividend Yield2.75%
Average Volume (3M)22.27K
Price to Earnings (P/E)11.5
Beta (1Y)0.96
Revenue Growth6.49%
EPS Growth35.88%
CountryUS
Employees474
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.91
Shares Outstanding13,773,162
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$36.00Price Target Upside16.32% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.07
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
66
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 194.95M | 189.09M | 176.56M | 152.05M | 113.66M | 92.17M |
| Gross Profit | 126.51M | 117.75M | 98.63M | 91.89M | 94.70M | 81.38M |
| EBITDA | 56.74M | 49.51M | 38.95M | 34.13M | 44.49M | 34.49M |
| Net Income | 40.02M | 33.31M | 25.94M | 22.79M | 32.52M | 23.50M |
Balance Sheet | ||||||
| Total Assets | 3.50B | 3.43B | 3.36B | 3.28B | 3.02B | 2.64B |
| Cash, Cash Equivalents and Short-Term Investments | 597.13M | 309.46M | 601.41M | 502.13M | 478.32M | 576.33M |
| Total Debt | 218.21M | 300.03M | 308.09M | 328.67M | 226.28M | 127.80M |
| Total Liabilities | 3.12B | 3.06B | 3.03B | 2.97B | 2.72B | 2.34B |
| Stockholders Equity | 384.72M | 370.86M | 335.21M | 316.54M | 298.14M | 297.17M |
Cash Flow | ||||||
| Free Cash Flow | 43.04M | 34.62M | 30.60M | 11.22M | 38.07M | 32.78M |
| Operating Cash Flow | 43.70M | 36.39M | 32.47M | 22.15M | 40.67M | 34.74M |
| Investing Cash Flow | -89.04M | -138.35M | -44.36M | -194.09M | -389.90M | -265.69M |
| Financing Cash Flow | 63.06M | 23.33M | 46.04M | 229.73M | 252.82M | 236.07M |
Farmers & Merchants Bancorp Technical Analysis
Positive
30.95
Price Trends
29.94
Positive
28.05
Positive
26.59
Positive
Market Momentum
1.27
Negative
64.73
Neutral
76.71
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 30.95 is below the 20-day moving average (MA) of 31.75, above the 50-day MA of 29.94, and above the 200-day MA of 26.59, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 64.73 is Neutral, neither overbought nor oversold. The STOCH value of 76.71 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $401.26M | 14.31 | 13.09% | 2.10% | 4.72% | 3.36% | |
76 Outperform | $543.37M | 12.55 | 13.95% | 1.29% | 9.03% | 108.77% | |
75 Outperform | $459.47M | 11.46 | 10.72% | 2.96% | 6.49% | 35.88% | |
72 Outperform | $590.00M | 13.19 | 10.18% | ― | 8.92% | 74.86% | |
71 Outperform | $478.08M | 12.41 | 14.31% | 3.67% | 0.14% | 32.11% | |
70 Outperform | $488.11M | 14.21 | 6.18% | ― | 12.29% | 97.75% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FMAO
Farmers & Merchants Bancorp
34.16
10.88
46.77%
SFST
Southern First Bancshares
64.18
23.40
57.38%
WTBA
West Bancorporation
28.27
11.01
63.81%
BWFG
Bankwell Financial Group
67.22
28.28
72.61%
PDLB
Ponce Financial Group Inc
20.46
6.33
44.80%
USCB
USCB Financial Holdings, Inc. Class A
22.38
6.53
41.23%
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.