Farmers and Merchants Bank of Long Beach (FMBL) AI Stock Analysis

• Market Cap: $717.69M
• Dividend Yield: 1.94%
• Average Volume (3M): 39.00
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.22
• Revenue Growth: 0.82%
• EPS Growth: -20.37%
• Country: US
• Employees: 815
• Sector: Financial
• Sector Strength: 85
• Industry: Banks - Regional
• EPS (TTM): 391.48
• Shares Outstanding: 124,276
• 10 Day Avg. Volume: 52
• 30 Day Avg. Volume: 39
• PEG Ratio: -2.44
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Farmers and Merchants Bank of Long Beach presents a mixed outlook. The strong balance sheet and operational efficiency are key strengths, while declining net profit margins and revenue growth pose challenges. Technical indicators suggest caution, and the valuation is fair, offering moderate income potential. Continued focus on improving revenue generation and maintaining profitability will be crucial for future performance.

Farmers and Merchants Bank of Long Beach Business Overview & Revenue Model

Company Description

Farmers & Merchants Bank of Long Beach provides various banking products and services to individuals, professionals, and small to medium-sized businesses. It offers checking, savings, Christmas club savings, health savings, money market, and investment accounts; demand and time deposits; certificates of deposit; and retirement plans. The company also provides personal, home, small business administration, commercial real estate, real estate and construction, and commercial business loans, as well as lines of credit; financing for residential loans comprising single-family and multifamily loans; and credit, debit, and gift cards. In addition, it offers account management, receivables and payables, and risk management services; and merchant, electronic lockbox, mobile and remote deposit capture, digital wallet, direct deposit, escrow, faith-based and healthcare banking, and other services, as well as online and mobile banking services. As of December 31, 2021, the company operated 25 branches in Los Angeles, Orange, and Santa Barbara Counties. Farmers & Merchants Bank of Long Beach was incorporated in 1907 and is headquartered in Long Beach, California.

How the Company Makes Money

Farmers and Merchants Bank of Long Beach generates revenue primarily through interest income from loans and mortgages, which is a significant portion of their earnings. The bank also earns money from fees associated with its various banking services, including checking and savings account maintenance fees, overdraft charges, and transaction fees. Additionally, FMBL benefits from investment income through wealth management and advisory services, providing a diversified revenue stream. The bank maintains strong community ties and partnerships with local businesses, which further bolster its reputation and financial stability.

Farmers and Merchants Bank of Long Beach Financial Statement Overview

Summary

Farmers and Merchants Bank of Long Beach demonstrates strong revenue growth and effective cash flow management. However, decreasing profit margins and return on equity signal underlying operational inefficiencies that may impact long-term profitability. The bank's balance sheet reflects manageable debt levels and stable equity, ensuring financial resilience. Continued focus on improving profitability and cash flow generation will be crucial for sustaining growth and enhancing shareholder value.

Income Statement

Farmers and Merchants Bank of Long Beach has shown a strong revenue growth rate of 31.9% for the most recent year, which indicates robust expansion in its operations. The bank maintains a healthy gross profit margin of 100% due to its revenue structure, but a notable decrease in net profit from $109 million to $70 million has compressed the net profit margin. The EBIT and EBITDA margins have decreased as well, showing reduced efficiency in core operations. The bank's ability to sustain revenue growth is a positive indicator, but shrinking profitability margins suggest operational challenges.

Balance Sheet

The balance sheet of the bank reveals a moderate debt-to-equity ratio of 0.74, indicating a balanced approach to leverage. An equity ratio of 11.2% shows a lower reliance on equity financing. However, return on equity dropped to 5.2%, indicating less effective use of equity to generate profits. The bank's stable equity position and manageable debt levels contribute to its financial stability, but declining ROE highlights a key area for improvement.

Cash Flow

The bank's operating cash flow to net income ratio stands at 1.55, indicating efficient cash generation relative to net income. However, free cash flow decreased by 49.1%, pointing to a potential challenge in maintaining liquidity and funding future growth. The free cash flow to net income ratio is 1.31, suggesting adequate cash flow to cover net income. While operating cash flow remains strong, the decline in free cash flow growth raises concerns about future cash availability.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
417.19M	431.97M	327.57M	317.09M	281.88M	266.75M
	Gross Profit
417.19M	431.97M	327.57M	317.09M	281.88M	266.75M
	EBIT
160.81M	91.10M	166.50M	144.53M	96.19M	102.78M
	EBITDA
-11.33M	91.13M	144.04M	153.50M	105.63M	112.03M
	Net Income Common Stockholders
56.77M	70.01M	109.00M	115.20M	79.80M	85.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
-74.59M	623.47M	176.84M	1.45B	1.17B	269.49M
	Total Assets
12.04B	12.04B	12.05B	11.44B	9.87B	7.61B
	Total Debt
1.92B	1.00B	700.00M	922.68M	1.07B	632.43M
	Net Debt
1.29B	376.53M	557.14M	-378.99M	58.24M	513.56M
	Total Liabilities
10.69B	10.69B	700.00M	10.20B	8.73B	6.53B
	Stockholders Equity
1.35B	1.35B	1.31B	1.24B	1.14B	1.08B
Cash Flow		Free Cash Flow
0.00	91.48M	179.71M	172.49M	137.38M	107.02M
	Operating Cash Flow
0.00	108.39M	190.88M	193.71M	142.78M	123.97M
	Investing Cash Flow
0.00	437.31M	-1.78B	-1.36B	-1.44B	-293.16M
	Financing Cash Flow
0.00	-65.09M	434.96M	1.45B	2.19B	200.90M

Farmers and Merchants Bank of Long Beach Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5775.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMBL, the sentiment is Positive. The current price of 5775 is above the 20-day moving average (MA) of 5697.23, above the 50-day MA of 5687.30, and above the 200-day MA of 5464.73, indicating a bullish trend. The MACD of 40.01 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 89.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMBL.

Farmers and Merchants Bank of Long Beach Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBT	78 Outperform	$759.04M	10.10	14.24%	3.24%	6.98%	5.97%
MCBS	75 Outperform	$744.52M	11.36	16.05%	3.02%	8.80%	30.31%
FCBC	75 Outperform	$721.84M	14.36	10.08%	3.09%	2.49%	4.48%
MBWM	73 Outperform	$745.85M	9.57	13.55%	3.13%	12.26%	-6.93%
FMBL	68 Neutral	$717.69M	14.75	3.56%	1.94%	0.82%	-20.37%
BFST	66 Neutral	$740.00M	10.23	9.77%	2.26%	18.34%	-4.12%
Sector *	64 Neutral	$12.75B	9.93	7.86%	17015.07%	12.19%	-5.92%