F & M Bank (FMBM) AI Stock Analysis

• Market Cap: $78.03M
• Dividend Yield: 4.73%
• Average Volume (3M): 2.53K
• Price to Earnings (P/E): 9.0
• Beta (1Y): -0.10
• Revenue Growth: 10.86%
• EPS Growth: 188.59%
• Country: US
• Employees: 170
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.70
• Shares Outstanding: 3,563,150
• 10 Day Avg. Volume: 3,209
• 30 Day Avg. Volume: 2,527
• PEG Ratio: 0.54
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.22
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.31
• Enterprise Value/Ebitda: 2.58
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $24.00 ▲(9.14%Upside)

F & M Bank's stock score is driven by strong technical indicators and attractive valuation metrics. Despite challenges in financial performance, the stock's bullish momentum and low valuation make it appealing. However, potential risks include revenue volatility and overbought technical signals.

F & M Bank Business Overview & Revenue Model

Company Description

F & M Bank Corp. operates as the bank holding company for Farmers & Merchants Bank that provides commercial banking services in Virginia. The company offers commercial and individual demand and time deposit accounts, savings accounts, checking accounts, money market accounts, internet and mobile banking services, and drive-in banking services. It also provides construction loans, including residential, and land acquisition and development loans; commercial real estate loans; business loans; consumer loans, such as personal loans and lines of credit, automobile loans, deposit account loans, installment and demand loans, and home equity loans; residential mortgage loans; credit cards; dealer finance; farmland loans; multi-family loans; and commercial and industrial loans. In addition, the company offers brokerage services; and life, and commercial and personal insurance products, as well as safe deposit boxes. Further, it originates conventional and government sponsored mortgages; and title insurance and real estate settlement services. As of December 31, 2021, the company operated thirteen banking offices in Rockingham, Shenandoah, Page, and Augusta counties; and a loan production office located in Penn Laird. F & M Bank Corp. was founded in 1908 and is headquartered in Timberville, Virginia.

How the Company Makes Money

F & M Bank generates revenue primarily through interest income from loans and advances made to customers, including personal, commercial, and mortgage loans. Interest income is the largest component of the bank's revenue, derived from the difference between the interest rates charged on loans and the interest rates paid on deposits. Additionally, the bank earns non-interest income from fees and service charges on deposit accounts, transaction services, and wealth management advisory services. Other significant contributors to revenue include gains from the sale of investment securities and income from partnerships with financial service providers that offer insurance and investment products. The bank's strategic focus on building strong customer relationships and expanding its product offerings plays a crucial role in its financial performance.

F & M Bank Financial Statement Overview

Summary

F & M Bank's financial statements reflect a mixed performance. The income statement shows significant volatility and challenges in revenue generation, while the balance sheet indicates moderate stability with manageable leverage. Cash flows are generally positive, but historical inconsistencies necessitate prudent management.

Income Statement

The income statement shows significant volatility in revenue, with a drastic drop to zero in the latest year. This inconsistency in revenue generation raises concerns about the company's ability to maintain stable operations. The EBIT margin has fluctuated significantly, and the absence of EBITDA data in certain years hinders comprehensive analysis. Historical net income has been positive, but the current period reflects a challenging environment.

Balance Sheet

The balance sheet reflects moderate stability with a relatively low debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio indicates a declining trend in shareholder equity relative to total assets. The bank's liquidity is supported by a substantial amount of cash and short-term investments. Overall, the balance sheet presents a cautiously optimistic view with potential risks if equity continues to decline.

Cash Flow

Cash flow analysis shows variability, with a positive free cash flow in the current period, indicating operational efficiency. The operating cash flow to net income ratio suggests adequate cash generation relative to earnings. However, historical fluctuations in free cash flow and investing activities require careful monitoring to ensure sustained liquidity and financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.35M	41.38M	1.90M	42.58M	43.25M
Gross Profit	44.35M	40.36M	-2.58M	42.58M	43.25M
EBITDA	9.33M	3.37M	998.00K	13.09M	597.00K
Net Income	7.29M	2.77M	8.32M	10.74M	8.79M
Balance Sheet
Total Assets	1.30B	1.29B	1.25B	1.22B	966.93M
Cash, Cash Equivalents and Short-Term Investments	95.55M	19.79M	78.53M	415.34M	119.32M
Total Debt	6.97M	66.93M	76.89M	21.77M	33.20M
Total Liabilities	1.22B	1.22B	1.18B	21.77M	33.20M
Stockholders Equity	86.14M	78.32M	70.79M	100.46M	95.63M
Cash Flow
Free Cash Flow	7.21M	-3.06M	13.93M	20.72M	1.11M
Operating Cash Flow	7.49M	2.40M	17.57M	21.28M	1.85M
Investing Cash Flow	27.22M	-50.20M	-147.88M	-243.70M	-142.13M
Financing Cash Flow	-1.47M	36.57M	54.83M	232.13M	142.89M

F & M Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMBM, the sentiment is Positive. The current price of 21.99 is above the 20-day moving average (MA) of 21.91, above the 50-day MA of 20.94, and above the 200-day MA of 20.24, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 58.06 is Neutral, neither overbought nor oversold. The STOCH value of 59.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMBM.

F & M Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUSB	79 Outperform	$74.48M	10.09	8.10%	2.01%	5.04%	-6.92%
BOTJ	73 Outperform	$63.15M	9.57	10.25%	2.91%	12.23%	-25.92%
UBCP	73 Outperform	$81.46M	11.40	11.29%	6.25%	5.81%	-22.37%
AUBN	70 Neutral	$99.01M	14.44	8.25%	3.82%	22.78%	722.30%
FMBM	69 Neutral	$78.03M	9.05	10.09%	4.73%	10.86%	188.59%
Sector *	58 Neutral	HK$92.47B	5.78	-3.20%	4.64%	5.50%	-56.25%
NSTS	―	$63.24M	―	-1.13%	―	―	―

F & M Bank Corporate Events

F & M Bank Holds Annual Shareholder Meeting

F & M Bank Corp. held its annual meeting of shareholders on May 17, 2025, where key proposals were voted on, including the election of directors, ratification of an independent accounting firm, approval of executive compensation, and the frequency of shareholder votes on executive pay. The meeting resulted in the election of directors to serve until 2028, the appointment of Elliott Davis, LLC as the accounting firm for 2025, approval of executive compensation, and the decision to hold annual advisory votes on executive compensation.