Farmers & Merchants Bancorp (FMCB) AI Stock Analysis

• Market Cap: $853.63M
• Dividend Yield: 1.72%
• Average Volume (3M): 148.00
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.12
• 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): 2.68
• P/FCF Ratio: 7.65
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 3.02
• Enterprise Value/Ebitda: 5.39
• 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: 83 Outperform
• Price Target: $1,340.00 ▲(27.62% Upside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

The score is led by strong financial performance (profitability, rapid revenue growth, and a very conservative balance sheet) and supportive technical trends. Valuation is attractive with a low P/E, while corporate updates reinforce shareholder-return focus; the main risk signal is mixed cash flow conversion.

Positive Factors

Conservative balance sheet

Extremely low leverage and a strong equity ratio provide durable financial flexibility, lowering funding and solvency risk. This supports lending capacity, steady capital returns and resilience through interest-rate or credit-cycle stress without relying on external borrowings.

Strong core profitability

Healthy NIM and double-digit ROE indicate the bank earns robust spread income from lending and investments. Sustained profitability underpins the ability to fund organic growth, branch expansion and shareholder payouts, and makes the franchise more resilient to margin compression.

Top-tier credit quality

Exceptionally low loss rates and a sizable allowance point to disciplined underwriting and conservative provisioning. Strong credit performance preserves capital, reduces volatility in earnings, and supports continued lending and dividend programs over a multi-quarter horizon.

Negative Factors

Weak operating cash conversion

Low conversion of net income into operating cash flow is a durable concern: it can signal timing mismatches or accrual-driven earnings that are harder to deploy for capex, branch openings or buybacks, potentially constraining capital allocation despite reported profits.

Slowing free cash flow growth

A deceleration in free cash flow growth reduces the bank's internal funding runway for dividends, repurchases and expansion. Over several quarters this can force tougher prioritization of capital uses or increase sensitivity to funding costs and deposit trends.

Loan portfolio concentration

Significant exposure to agriculture and CRE concentrates credit risk in cyclical sectors. While currently performing, these concentrations make the portfolio more vulnerable to sector-specific downturns (commodity, land values, construction cycle), risking asset-quality deterioration.

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

Strong underlying fundamentals driven by very strong revenue growth and profitability (Income Statement 85) and a conservative, low-leverage balance sheet with healthy ROE (Balance Sheet 88). Cash flow quality is solid but mixed (Cash Flow 78), with weak operating cash flow conversion and slowing free cash flow growth as key watch items.

Income Statement

Farmers & Merchants Bancorp demonstrates strong profitability with a consistent increase in total revenue over the years, highlighted by a TTM revenue growth rate of 90.1%. The company maintains robust gross and net profit margins, indicating efficient cost management and profitability. However, the slight decline in net profit margin from the previous year suggests potential cost pressures or competitive challenges.

Balance Sheet

The balance sheet is solid, with a low debt-to-equity ratio of 0.0167, indicating minimal leverage and financial risk. The return on equity is healthy at 15.03%, reflecting effective use of shareholder funds. The equity ratio is strong, showcasing a stable financial structure with significant equity backing.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth, but the company maintains a high free cash flow to net income ratio of 96.89%, indicating strong cash generation relative to earnings. The operating cash flow to net income ratio is low, suggesting potential challenges in converting earnings into cash flow.

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: Negative
• RSI: Negative
• STOCH: Negative

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 1162.16, below the 50-day MA of 1133.33, and above the 200-day MA of 1041.42, indicating a bullish trend. The MACD of 18.37 indicates Negative momentum. The RSI at 72.04 is Negative, neither overbought nor oversold. The STOCH value of 86.91 is Negative, 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	83 Outperform	$853.63M	8.85	14.68%	1.72%	2.21%	10.84%
MBWM	77 Outperform	$927.26M	9.87	13.79%	3.05%	5.64%	6.24%
TRST	75 Outperform	$837.92M	13.99	8.35%	3.48%	5.75%	20.52%
CCBG	73 Outperform	$721.84M	11.75	11.90%	2.33%	9.43%	17.64%
HAFC	72 Outperform	$820.18M	10.91	9.49%	3.82%	3.34%	15.52%
MCBS	69 Neutral	$835.15M	10.98	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 Bancorp Highlights Strong 2025 Performance

On February 2, 2026, Farmers & Merchants Bancorp released an investor presentation providing a 2025 year-end update that underscores its strong financial performance, conservative balance sheet, and top-tier credit quality. As of December 31, 2025, the bank reported $5.7 billion in assets, robust profitability metrics including a 1.67% return on assets and 15.11% return on equity, a net interest margin of 4.15%, and tangible common equity of 11.15%, supported by a $1.7 billion investment portfolio with no brokered CDs or other borrowings. Loan and deposit data showed a loan-to-deposit ratio of 73.67% and low funding costs, while credit quality remained exceptional, with net charge-offs of just 0.05% of average loans in 2025, non-performing loans at 0.02% of total loans, and an allowance for credit losses of 2.08%. The bank highlighted its sizable and high-quality agricultural book—about $1.0 billion or 26.6% of loans, with no non-performing ag loans at year-end 2025—and a commercial real estate and construction portfolio representing 43.9% of loans but operating well below regulatory concentration thresholds and showing minimal losses. Shareholders have benefited from a 14.70% average annual total return and 11.11% annual dividend growth over the past 29 years to December 31, 2025, alongside ongoing share repurchases and a move from semi-annual to quarterly dividends in 2025. The institution’s sustained rankings among the best-performing U.S. banks and numerous safety and performance awards, combined with planned branch expansion in Lafayette, downtown Walnut Creek and Elk Grove, underline its strong competitive positioning and continued focus on steady growth and shareholder returns.

The most recent analyst rating on (FMCB) stock is a Buy with a $1310.00 price target. To see the full list of analyst forecasts on Farmers & Merchants Bancorp stock, see the FMCB Stock Forecast page.

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.