Farmers & Merchants Bancorp Inc (FMAO)
NASDAQ:FMAO
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Farmers & Merchants Bancorp
(NASDAQ:FMAO)
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Rating:70Outperform
Price Target:
$29.00
▲(8.29% Upside)
Action:UpgradedDate:04/30/26
Overall score reflects improving financial performance (strong TTM growth, better leverage, rising ROE) and an attractive valuation (low P/E and solid dividend yield). Technicals are supportive but largely neutral, limiting upside to the score, while margin compression versus prior peaks and uneven free-cash-flow trends remain key risks.
Positive Factors
Strong revenue and earnings growth
Very strong TTM top-line expansion (+177%) with net income rising to ~$35.9M and improving ROE indicates durable franchise momentum. Sustained revenue growth increases scale, supports reinvestment, and provides a multi-quarter runway for margin recovery and earnings stability.
Negative Factors
Margin compression vs prior peaks
Profitability remains meaningfully below earlier cycle highs; net margin compression versus 2021–2022 reduces earnings power per dollar of revenue. If margins do not recover structurally, the bank’s ability to translate revenue growth into proportional profit and returns will be constrained long term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and earnings growth
Very strong TTM top-line expansion (+177%) with net income rising to ~$35.9M and improving ROE indicates durable franchise momentum. Sustained revenue growth increases scale, supports reinvestment, and provides a multi-quarter runway for margin recovery and earnings stability.
Read all positive factors
Farmers & Merchants Bancorp (FMAO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$375.18M
Dividend Yield3.18%
Average Volume (3M)22.27K
Price to Earnings (P/E)9.2
Beta (1Y)0.93
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 Ratio0.13
Price to Book (P/B)0.92
Price to Sales (P/S)1.79
P/FCF Ratio9.80
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue2.46
Enterprise Value/Gross Profit3.88
Enterprise Value/Ebitda9.45
Forecast
1Y Price Target
$28.50Price Target Upside6.42% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.82
Revenue Forecast (FY)$133.95M
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...
How the Company Makes Money
Farmers & Merchants Bancorp primarily earns money through (1) net interest income and (2) noninterest income. Net interest income is generated by earning interest and fees on loans (e.g., commercial, real estate, and consumer lending) and on secur...
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 | 49.82M | 42.52M | 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
26.16
Positive
25.82
Positive
25.21
Positive
Market Momentum
0.43
Negative
65.37
Neutral
43.58
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 above the 20-day moving average (MA) of 25.94, above the 50-day MA of 26.16, and above the 200-day MA of 25.21, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 65.37 is Neutral, neither overbought nor oversold. The STOCH value of 43.58 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $408.84M | 9.53 | 13.67% | 4.39% | 0.02% | 34.44% | |
74 Outperform | $335.02M | 9.09 | 12.69% | 2.10% | 4.89% | 3.63% | |
70 Outperform | $375.18M | 9.21 | 9.85% | 3.18% | 6.00% | 31.08% | |
69 Neutral | $528.20M | 11.25 | 9.65% | ― | 6.94% | 90.92% | |
68 Neutral | $425.16M | 11.14 | 5.85% | ― | 13.13% | 119.50% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $415.88M | 8.31 | 13.31% | 1.66% | 7.75% | 220.19% |
* Financial Sector Average
FMAO
Farmers & Merchants Bancorp
27.25
3.01
12.43%
SFST
Southern First Bancshares
56.81
20.44
56.20%
WTBA
West Bancorporation
24.01
5.05
26.66%
BWFG
Bankwell Financial Group
52.16
19.03
57.44%
PDLB
Ponce Financial Group Inc
17.60
4.22
31.54%
USCB
USCB Financial Holdings, Inc. Class A
18.35
2.04
12.50%
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.