Farmers & Merchants Bancorp Inc (FMAO)
NASDAQ:FMAO
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Farmers & Merchants Bancorp
(NASDAQ:FMAO)
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Rating:63Neutral
Price Target:
$28.00
▲(4.32% Upside)
Action:DowngradedDate:02/28/26
The score is driven primarily by solid multi-year growth and a stable balance sheet, but it is held back by the significant TTM cash-flow weakening. Supportive valuation (low P/E and a ~3.5% dividend yield) and the new share repurchase program provide offsets, while near-term technical indicators remain soft.
Positive Factors
Consistent multi-year revenue and earnings growth
Sustained revenue and earnings expansion over multiple years indicates durable franchise growth and rising scale in core banking activities. That scale supports diversified net interest and fee income, improves absorption of fixed costs, and underpins investment capacity and resilience over the next several months.
Negative Factors
Sharp TTM cash-flow deterioration
A collapse in operating cash flow and negative free cash flow weakens earnings quality and reduces internal funding for lending, dividends, or buybacks. Persistent weak cash conversion raises reliance on external funding and creates timing risk for capital plans and liquidity over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent multi-year revenue and earnings growth
Sustained revenue and earnings expansion over multiple years indicates durable franchise growth and rising scale in core banking activities. That scale supports diversified net interest and fee income, improves absorption of fixed costs, and underpins investment capacity and resilience over the next several months.
Read all positive factors
Farmers & Merchants Bancorp (FMAO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$374.36M
Dividend Yield3.18%
Average Volume (3M)22.27K
Price to Earnings (P/E)10.2
Beta (1Y)0.93
Revenue Growth6.52%
EPS Growth36.77%
CountryUS
Employees482
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.71
Shares Outstanding13,748,074
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 Cap1.53
Enterprise Value/Revenue3.04
Enterprise Value/Gross Profit4.90
Enterprise Value/Ebitda11.96
Forecast
1Y Price Target
$28.00Price Target Upside4.32% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.8
Revenue Forecast (FY)$133.81M
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 generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. Key revenue streams include interest income from commercial and co...
Farmers & Merchants Bancorp Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
32
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 189.09M | 176.56M | 152.05M | 113.66M | 92.17M |
| Gross Profit | 117.75M | 98.63M | 91.89M | 94.70M | 81.38M |
| EBITDA | 42.52M | 38.95M | 34.13M | 44.49M | 34.49M |
| Net Income | 33.31M | 25.94M | 22.79M | 32.52M | 23.50M |
Balance Sheet | |||||
| Total Assets | 3.43B | 3.36B | 3.28B | 3.02B | 2.64B |
| Cash, Cash Equivalents and Short-Term Investments | 519.32M | 601.41M | 502.13M | 478.32M | 576.33M |
| Total Debt | 300.03M | 308.09M | 328.67M | 226.28M | 127.80M |
| Total Liabilities | 3.06B | 3.03B | 2.97B | 2.72B | 2.34B |
| Stockholders Equity | 370.86M | 335.21M | 316.54M | 298.14M | 297.17M |
Cash Flow | |||||
| Free Cash Flow | 34.62M | 30.60M | 11.22M | 38.07M | 32.78M |
| Operating Cash Flow | 36.39M | 32.47M | 22.15M | 40.67M | 34.74M |
| Investing Cash Flow | -138.35M | -44.36M | -194.09M | -389.90M | -265.69M |
| Financing Cash Flow | 23.33M | 46.04M | 229.73M | 252.82M | 236.07M |
Farmers & Merchants Bancorp Technical Analysis
Positive
26.84
Price Trends
26.18
Positive
25.63
Positive
25.14
Positive
Market Momentum
0.30
Negative
65.91
Neutral
92.91
Negative
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 26.84 is above the 20-day moving average (MA) of 25.32, above the 50-day MA of 26.18, and above the 200-day MA of 25.14, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 65.91 is Neutral, neither overbought nor oversold. The STOCH value of 92.91 is Negative, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $425.89M | 11.55 | 13.03% | 4.39% | 4.47% | 49.09% | |
68 Neutral | $359.30M | 12.79 | 14.96% | 2.10% | 15.45% | 52.68% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $480.78M | 10.51 | 8.63% | ― | 4.74% | 86.27% | |
64 Neutral | $423.23M | 13.01 | 5.45% | ― | 16.03% | 145.10% | |
63 Neutral | $374.36M | 10.19 | 9.33% | 3.18% | 6.52% | 36.77% | |
63 Neutral | $421.97M | 10.09 | 12.21% | 1.66% | 2.52% | 85.94% |
* Financial Sector Average
FMAO
Farmers & Merchants Bancorp
26.84
6.16
29.76%
SFST
Southern First Bancshares
58.53
27.92
91.21%
WTBA
West Bancorporation
25.06
7.21
40.39%
BWFG
Bankwell Financial Group
52.59
24.80
89.21%
PDLB
Ponce Financial Group Inc
17.62
6.53
58.88%
USCB
USCB Financial Holdings, Inc. Class A
19.80
3.40
20.74%
Farmers & Merchants Bancorp Corporate Events
Business Operations and StrategyStock Buyback
Farmers & Merchants Bancorp Announces New Share Repurchase
Positive
Jan 27, 2026
On January 27, 2026, Farmers Merchants Bancorp, Inc. announced that its board of directors had authorized a share repurchase program for up to 650,000 shares, representing approximately 4.7% of its outstanding common stock, with purchases permitt...
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.