Farmers & Merchants Bancorp (FMCB) AI Stock Analysis

• Market Cap: $817.61M
• Dividend Yield: 1.72%
• Average Volume (3M): 148.00
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.11
• Revenue Growth: 2.21%
• EPS Growth: 10.84%
• Country: US
• Employees: 373
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.53
• Shares Outstanding: 720,365
• 10 Day Avg. Volume: 81
• 30 Day Avg. Volume: 148
• PEG Ratio: 2.32
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 2.85
• P/FCF Ratio: 7.65
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 2.86
• Enterprise Value/Ebitda: 5.09
• 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: 81 Outperform
• Price Target: $1,259.00 ▲(19.90% Upside)

Farmers & Merchants Bancorp demonstrates strong financial performance and valuation, with a solid balance sheet and low P/E ratio. Technical analysis shows bullish momentum, though caution is advised due to potential overbought conditions. Positive corporate events further enhance the stock's attractiveness.

Positive Factors

Strong Capital Position

A strong capital position with high risk-based capital ratios ensures financial stability and resilience against economic downturns.

Revenue Growth

Significant revenue growth indicates expanding business operations and market reach, supporting long-term profitability.

Credit Quality

Maintaining high credit quality minimizes risk and ensures stable earnings, enhancing long-term financial health.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth can limit the company's ability to invest in growth opportunities and manage debt.

Loan Portfolio Challenges

A decrease in loan portfolio size may impact interest income and suggests challenges in maintaining loan growth.

Operating Cash Flow Concerns

Low operating cash flow conversion indicates potential issues in cash generation from operations, affecting liquidity.

Farmers & Merchants Bancorp Business Overview & Revenue Model

Company Description

Farmers & Merchants Bancorp (FMCB) is a financial services holding company headquartered in the United States, primarily engaged in providing a broad range of banking and financial solutions. The company operates through its subsidiary, Farmers & Merchants Bank, which offers traditional banking services such as personal and business banking, mortgage lending, and wealth management. FMCB serves a diverse clientele, including individuals, small businesses, and corporate customers, focusing on community-oriented banking practices and personalized service.

How the Company Makes Money

Farmers & Merchants Bancorp generates revenue primarily through interest income earned on loans and investments. The company issues various types of loans, including commercial loans, residential mortgages, and consumer loans, with interest rates that contribute significantly to its earnings. Additionally, FMCB earns non-interest income from fees associated with banking services, such as account maintenance fees, transaction fees, and wealth management services. The bank also invests in securities, which provide interest income. Overall, the company's revenue model is heavily reliant on net interest margin, which is the difference between the income generated from loans and the interest paid on deposits. Strategic partnerships with local businesses and community organizations also enhance its market presence and customer acquisition, further contributing to its financial performance.

Farmers & Merchants Bancorp Financial Statement Overview

Summary

Farmers & Merchants Bancorp demonstrates strong financial health with increasing revenues, solid profitability, and a stable capital structure free from debt. The company's capability to generate cash efficiently supports its operations, though attention to ROE fluctuations and investing activities is advisable.

Income Statement

The income statement reflects solid revenue growth with an increase from $163.08M in 2020 to $271.98M in 2024. Gross and net profit margins are strong, indicative of effective cost management and high profitability. The company has maintained a consistent net income, showcasing stability in operations. However, absence of EBITDA margin data for 2024 limits a complete assessment of operating efficiency.

Balance Sheet

The balance sheet is robust with a zero debt level as of 2024, reducing financial risk significantly. The equity ratio has improved, suggesting a solid capital structure. However, the ROE has shown some fluctuations, indicating variability in returns on equity investments. The increase in stockholders' equity over the years is a positive sign of financial health.

Cash Flow

Cash flow analysis shows strong free cash flow growth, reflecting effective cash management. The operating cash flow to net income ratio is healthy, indicating efficient conversion of earnings into cash. However, the consistent negative investing cash flow, despite being typical in banking, warrants monitoring as it may affect long-term liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	293.43M	289.41M	265.69M	204.14M	183.71M	172.57M
Gross Profit	230.98M	224.11M	217.92M	192.85M	177.47M	158.58M
EBITDA	129.72M	125.18M	119.04M	102.17M	90.95M	80.72M
Net Income	91.63M	88.46M	88.31M	75.09M	66.34M	58.73M
Balance Sheet
Total Assets	5.63B	5.37B	5.31B	5.33B	5.18B	4.55B
Cash, Cash Equivalents and Short-Term Investments	179.47M	676.98M	593.15M	741.12M	986.22M	1.20B
Total Debt	10.31M	10.31M	10.31M	10.31M	10.31M	10.31M
Total Liabilities	4.98B	4.80B	4.76B	4.84B	4.71B	4.13B
Stockholders Equity	645.25M	573.07M	549.75M	485.31M	463.14M	423.67M
Cash Flow
Free Cash Flow	97.37M	101.34M	88.38M	97.59M	57.89M	50.41M
Operating Cash Flow	103.70M	103.73M	93.35M	101.78M	59.96M	58.12M
Investing Cash Flow	-340.93M	-274.58M	-146.55M	-315.30M	-296.15M	-736.75M
Financing Cash Flow	116.54M	-27.23M	-124.42M	86.32M	567.81M	767.71M

Farmers & Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1050.00
• 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 FMCB, the sentiment is Positive. The current price of 1050 is below the 20-day moving average (MA) of 1111.32, below the 50-day MA of 1065.47, and above the 200-day MA of 1016.63, indicating a bullish trend. The MACD of 19.19 indicates Positive momentum. The RSI at 61.30 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMCB.

Farmers & Merchants Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMCB	81 Outperform	$817.61M	8.67	14.68%	1.72%	2.21%	10.84%
TRST	78 Outperform	$777.68M	13.91	8.35%	3.48%	5.75%	20.52%
HAFC	77 Outperform	$835.75M	11.68	9.49%	3.82%	3.34%	15.52%
CCBG	76 Outperform	$739.08M	12.02	11.90%	2.33%	9.43%	17.64%
MBWM	74 Outperform	$816.26M	9.27	13.79%	3.05%	5.64%	6.24%
MCBS	74 Outperform	$780.98M	10.40	15.62%	3.55%	-0.23%	10.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Farmers & Merchants Bancorp Corporate Events

Farmers & Merchants Adjusts Dividend Record Date

On November 24, 2025, Farmers & Merchants Bancorp announced a change in the record date for their fourth quarter cash dividend, moving it from December 15, 2025, to December 4, 2025. This adjustment may affect shareholders’ dividend eligibility and reflects the company’s operational decision-making process.

The most recent analyst rating on (FMCB) stock is a Buy with a $1174.00 price target. To see the full list of analyst forecasts on Farmers & Merchants Bancorp stock, see the FMCB Stock Forecast page.

Farmers & Merchants Bancorp Launches Special Shareholder Program

On November 13, 2025, Farmers & Merchants Bancorp announced a temporary special voluntary program for shareholders owning 99 shares or less of its common stock as of November 12, 2025. This initiative allows eligible shareholders to sell their shares without incurring any fees, enhancing liquidity and offering a chance to diversify their portfolios.

Farmers & Merchants Bancorp Declares Quarterly Dividend

On November 12, 2025, Farmers & Merchants Bancorp announced that its Board of Directors declared a quarterly cash dividend. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

Farmers & Merchants Bancorp Reports Strong Q3 2025 Results

On October 28, 2025, Farmers & Merchants Bancorp released an investor presentation detailing its financial performance for the third quarter and year-to-date 2025. The company reported strong financial metrics, including a net income of $69.8 million and a return on average equity of 15.28%. It continues to maintain a robust capital position with a risk-based capital ratio of 15.74% and a tangible common equity ratio of 11.26%. The bank’s strategic focus on superior client service and its expertise in agricultural lending have contributed to its steady growth and strong market positioning, with significant implications for its stakeholders.