Farmers & Merchants Bancorp (FMAO) AI Stock Analysis

• Market Cap: $367.23M
• Dividend Yield: 3.31%
• Average Volume (3M): 24.85K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.15
• Revenue Growth: 11.91%
• EPS Growth: 25.60%
• Country: US
• Employees: 482
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Regional
• EPS (TTM): 0.51
• Shares Outstanding: 13,718,086
• 10 Day Avg. Volume: 35,599
• 30 Day Avg. Volume: 24,849
• PEG Ratio: 0.49
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.35
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 2.46
• Enterprise Value/Ebitda: 2.76
• 1Y Price Target: $26.50
• Price Target Upside: -1.01% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $31.00 ▲(15.80%Upside)

Farmers & Merchants Bancorp demonstrates strong financial performance with consistent revenue growth and healthy profit margins. The technical analysis indicates a bullish trend, but caution is advised due to overbought signals. The valuation appears reasonable with a balanced P/E ratio and attractive dividend yield. Overall, the stock is well-positioned but requires monitoring of potential overvaluation risks.

Farmers & Merchants Bancorp Business Overview & Revenue Model

Company Description

Farmers & Merchants Bancorp (FMAO) is a financial holding company that operates primarily through its subsidiary, Farmers & Merchants State Bank. The company is headquartered in Archbold, Ohio, and serves a variety of communities across Ohio, Indiana, and Michigan. FMAO provides a broad range of banking services to individuals and businesses, including commercial, agricultural, and residential lending, as well as various deposit products and wealth management services.

How the Company Makes Money

Farmers & Merchants Bancorp generates revenue primarily through the interest income earned on loans and investment securities. The bank collects interest from its portfolio of loans, which includes commercial, agricultural, and residential real estate loans. Additionally, FMAO earns income from the fees associated with its various banking services, such as account maintenance fees, transaction fees, and fees for wealth management services. The bank also benefits from non-interest income sources, including service charges on deposit accounts and gains from the sale of loans or investment securities. Strategic partnerships and community relationships help the company maintain its customer base and expand its market presence, contributing to its overall earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	139.74M	98.90M	95.69M	100.37M	84.83M	74.87M
Gross Profit	123.13M	98.63M	95.69M	100.37M	84.83M	74.87M
EBITDA	35.65M	38.95M	34.13M	40.48M	30.24M	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	611.18M	601.41M	503.42M	478.32M	180.82M	410.74M
Total Debt	307.58M	308.09M	328.67M	226.28M	127.80M	17.86M
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	38.87M	30.60M	11.22M	38.07M	32.78M	24.16M
Operating Cash Flow	42.90M	32.47M	22.15M	40.67M	34.74M	27.38M
Investing Cash Flow	-109.90M	-45.85M	-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: 26.77
• 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 26.77 is above the 20-day moving average (MA) of 26.02, above the 50-day MA of 24.90, and above the 200-day MA of 26.13, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 79.05 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
CWBC	76 Outperform	$401.81M	15.19	7.23%	2.85%	48.19%	36.25%
NECB	75 Outperform	$322.54M	6.57	15.25%	3.70%	11.43%	10.33%
PBFS	73 Outperform	$326.01M	18.00	6.04%	―	16.29%	-12.22%
FSBW	73 Outperform	$320.52M	9.89	11.35%	2.64%	5.13%	-6.84%
FMAO	72 Outperform	$367.23M	13.46	8.18%	3.31%	11.91%	25.60%
CIVB	72 Outperform	$402.60M	9.45	9.07%	3.83%	9.51%	-2.12%
Sector *	65 Neutral	€12.74B	12.55	6.83%	3.82%	15.23%	6.82%

Farmers & Merchants Bancorp Corporate Events

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.

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.

Jo Ellen Hornish Resigns from Farmers & Merchants Bancorp Board

On May 20, 2025, Jo Ellen Hornish resigned from the Board of Directors of Farmers & Merchants Bancorp, Inc. and its wholly-owned subsidiary, The Farmers & Merchants State Bank. Mrs. Hornish, who has been a board member since 2013 and served on the Audit and Corporate Governance and Nominating Committees, announced her resignation following the board meeting on the same day.

The most recent analyst rating on (FMAO) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Farmers & Merchants Bancorp stock, see the FMAO Stock Forecast page.