F & M Bank (FMBM) AI Stock Analysis

• Market Cap: $104.03M
• Dividend Yield: 3.66%
• Average Volume (3M): 4.39K
• Price to Earnings (P/E): 9.8
• Beta (1Y): -0.17
• Revenue Growth: 6.78%
• EPS Growth: 91.98%
• Country: US
• Employees: 170
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.82
• Shares Outstanding: 3,556,658
• 10 Day Avg. Volume: 3,007
• 30 Day Avg. Volume: 4,392
• PEG Ratio: 0.06
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 9.86
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 3.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $32.00 ▲(9.44% Upside)

The score is driven primarily by improved financial performance (better profitability, stronger cash generation, and reduced leverage) and supportive valuation (low P/E with a ~3.56% dividend yield). Technicals are constructive but capped by overbought momentum signals (RSI and Stochastic), which adds near-term risk.

Positive Factors

Revenue Growth

The company's revenue growth rate of over 8% indicates a positive trend in expanding its market reach and customer base, which is crucial for long-term sustainability and competitiveness in the regional banking sector.

Cash Generation

Positive cash flows suggest operational efficiency and the ability to generate sufficient cash to support ongoing operations and potential investments, even though historical inconsistencies require careful management.

Balance Sheet Health

A stable balance sheet with manageable leverage indicates financial resilience, providing a buffer against economic fluctuations and supporting future growth initiatives.

Negative Factors

Revenue Volatility

Significant revenue volatility raises concerns about the company's ability to maintain stable operations, which can impact long-term financial health and strategic planning.

Equity Decline

A declining equity trend suggests potential risks to financial stability, as reduced shareholder equity can limit the company's ability to absorb losses and invest in growth opportunities.

Income Statement Weakness

Fluctuating EBIT margins indicate challenges in maintaining consistent profitability, which can affect the company's ability to reinvest in business operations and sustain competitive advantages.

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 through several key streams. Primarily, the bank earns interest income from loans provided to consumers and businesses, which typically includes personal loans, mortgages, and business financing. Additionally, FMBM earns fee income from various banking services, such as account maintenance fees, transaction fees, and service charges. The bank may also generate revenue through wealth management services, including investment advisory and financial planning fees. Significant partnerships with local businesses and community organizations may enhance customer acquisition and retention, further contributing to its earnings.

F & M Bank Financial Statement Overview

Summary

F & M Bank's financial performance is mixed. The income statement shows volatility with a drastic revenue drop, while the balance sheet indicates moderate stability with manageable leverage. Cash flows are generally positive but historically inconsistent, necessitating 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.06M	74.91M	66.09M	52.94M	46.63M	48.85M
Gross Profit	34.86M	42.01M	40.36M	44.83M	45.15M	39.82M
EBITDA	20.48M	9.33M	3.37M	9.94M	13.30M	11.34M
Net Income	10.61M	7.29M	2.77M	8.32M	10.74M	8.79M
Balance Sheet
Total Assets	1.36B	1.30B	1.29B	1.25B	1.22B	966.93M
Cash, Cash Equivalents and Short-Term Investments	348.29M	58.03M	19.79M	410.71M	415.34M	119.32M
Total Debt	7.00M	6.97M	66.93M	76.89M	21.77M	33.20M
Total Liabilities	1.26B	1.22B	1.22B	1.18B	1.12B	871.30M
Stockholders Equity	101.49M	86.14M	78.32M	70.79M	100.46M	95.63M
Cash Flow
Free Cash Flow	17.92M	7.21M	-3.06M	13.93M	20.72M	1.11M
Operating Cash Flow	18.36M	7.49M	2.40M	17.57M	21.28M	1.85M
Investing Cash Flow	7.27M	27.22M	-50.20M	-125.57M	-243.70M	-142.13M
Financing Cash Flow	-1.56M	-1.47M	36.57M	54.83M	232.13M	142.89M

F & M Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 29.24 is above the 20-day moving average (MA) of 28.49, above the 50-day MA of 27.53, and above the 200-day MA of 23.41, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 84.00 is Negative, neither overbought nor oversold. The STOCH value of 95.02 is Negative, 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
AUBN	77 Outperform	$90.07M	12.60	8.22%	4.16%	24.17%	739.42%
FMBM	72 Outperform	$104.03M	9.78	9.61%	3.66%	6.78%	91.98%
LSBK	68 Neutral	$115.30M	16.70	5.94%	2.12%	2.27%	66.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RVSB	61 Neutral	$104.37M	22.45	2.90%	1.51%	8.77%	369.81%
PBHC	54 Neutral	$88.60M	82.09	2.26%	2.86%	0.84%	―

F & M Bank Corporate Events

F & M Bank Updates Executive Employment and Severance Agreements

On December 16, 2025, F & M Bank Corp. and Farmers & Merchants Bank entered into amended and restated employment agreements with CEO Aubrey Michael Wilkerson, President Barton E. Black and Executive Vice President and CFO Lisa F. Campbell, setting new one-year terms that automatically renew annually unless either party gives notice. The agreements establish revised base salaries of $375,950 for Wilkerson, $329,250 for Black and $292,500 for Campbell, maintain eligibility for executive bonus and benefit plans, and put in place detailed severance and welfare continuance arrangements in the event of termination without cause or for good reason, including enhanced cash payouts and extended benefit-equivalent payments following a change of control, while reaffirming 18‑month post-employment non-compete and non-solicitation covenants that underscore the bank’s emphasis on leadership continuity and protection of confidential information.

The most recent analyst rating on (FMBM) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on F & M Bank stock, see the FMBM Stock Forecast page.