Farmers & Merchants Bancorp (FMCB) AI Stock Analysis

• Market Cap: $751.97M
• Dividend Yield: 1.79%
• Average Volume (3M): 829.00
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.10
• Revenue Growth: 2.73%
• EPS Growth: 7.89%
• Country: US
• Employees: 373
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 32.94
• Shares Outstanding: 722,351
• 10 Day Avg. Volume: 337
• 30 Day Avg. Volume: 829
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 2.13
• Enterprise Value/Ebitda: 6.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ―

Farmers & Merchants Bancorp shows robust financial performance with solid revenue growth and profitability, supported by a strong capital structure. While technical indicators suggest caution, the stock's valuation and positive corporate events indicate potential. Monitoring technical factors and long-term liquidity is recommended.

Farmers & Merchants Bancorp Business Overview & Revenue Model

Company Description

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides various banking services to businesses and individuals. The company accepts various deposit instruments, including checking, savings, money market, time certificates of deposit, and individual retirement accounts. It also offers range of lending products comprising commercial, commercial and residential real estate, real estate construction, agribusiness, and consumer loans, as well as equipment leases and credit card services; commercial products, including term loans, lines of credit and other working capital financing, and letters of credit; and financing products, such as automobile financing, home improvement, and home equity lines of credit. In addition, the company provides various specialized services consisting of credit card programs for merchants, lockbox and other collection services, account reconciliation, investment sweep, online account access, and electronic funds transfers through domestic and international wire and automated clearinghouse; and online banking services. Further, it offers investment products, such as mutual funds and annuities. The company serves its customers through 29 full-service branches and 3 stand-alone automated teller machines in the mid Central Valley of California, including Sacramento, San Joaquin, Solano, Stanislaus, and Merced counties, as well as the east region of the San Francisco Bay Area comprising Napa, Alameda, and Contra Costa counties. Farmers & Merchants Bancorp was founded in 1916 and is headquartered in Lodi, California.

How the Company Makes Money

Farmers & Merchants Bancorp generates revenue through various financial services and products. The primary sources of income include interest income from loans and mortgages provided to individuals and businesses. Additionally, the bank earns from fees related to account maintenance, transaction services, and other banking activities. Wealth management and investment services also contribute to the revenue, offering investment advisory and management services. The bank's earnings are further supported by strategic partnerships with other financial institutions and service providers, enhancing their product offerings and customer reach.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	271.98M	217.92M	199.30M	179.38M	163.08M
Gross Profit	271.98M	217.92M	199.30M	179.38M	163.08M
EBITDA	0.00	119.04M	102.17M	90.95M	80.72M
Net Income	88.46M	88.31M	75.09M	66.34M	58.73M
Balance Sheet
Total Assets	5.37B	5.31B	5.33B	5.18B	4.55B
Cash, Cash Equivalents and Short-Term Investments	535.47M	254.78M	757.55M	1.00B	1.20B
Total Debt	10.31M	10.31M	10.31M	10.31M	10.31M
Total Liabilities	4.80B	4.76B	4.84B	10.31M	4.13B
Stockholders Equity	573.07M	549.75M	485.31M	463.14M	423.67M
Cash Flow
Free Cash Flow	101.34M	88.38M	97.59M	57.89M	50.41M
Operating Cash Flow	103.73M	93.35M	101.78M	59.96M	58.12M
Investing Cash Flow	-274.58M	-146.55M	-315.30M	-296.15M	-736.75M
Financing Cash Flow	-27.23M	-124.42M	86.32M	567.81M	767.71M

Farmers & Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1041.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1041 is above the 20-day moving average (MA) of 1024.68, above the 50-day MA of 1005.50, and above the 200-day MA of 1005.83, indicating a bullish trend. The MACD of 11.60 indicates Negative momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 52.90 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
FCBC	80 Outperform	$671.24M	13.46	9.91%	8.87%	0.89%	-2.22%
NBN	79 Outperform	$816.52M	10.15	19.16%	0.04%	33.02%	33.76%
FMCB	78 Outperform	$751.97M	8.20	15.07%	1.79%	2.73%	7.89%
OSBC	76 Outperform	$924.54M	9.59	12.51%	1.37%	2.02%	-2.80%
HBT	75 Outperform	$797.46M	10.45	14.08%	3.24%	4.86%	7.89%
CPF	72 Outperform	$756.29M	12.55	11.16%	3.68%	2.81%	6.88%
Sector *	58 Neutral	HK$111.68B	6.58	-4.20%	3.95%	9.04%	-46.99%

Farmers & Merchants Bancorp Corporate Events

Farmers & Merchants Bancorp Highlights Strong Financial Position

On April 30, 2025, Farmers & Merchants Bancorp released an investor presentation detailing its financial position and operations. The company highlighted its strong liquidity and credit quality, with a diversified loan portfolio and a significant focus on agricultural lending. The bank’s strategic location in California’s Central Valley and Bay Area supports its growth and profitability. The presentation also noted the bank’s recognition as one of the safest banks in the U.S. and its consistent shareholder returns, including 89 consecutive years of dividends.

Spark’s Take on FMCB Stock

According to Spark, TipRanks’ AI Analyst, FMCB is a Outperform.

Farmers & Merchants Bancorp exhibits strong financial performance with increasing revenues and profitability, supported by a solid capital structure. The technical analysis presents a mixed picture with some short-term support but medium-term resistance, while the valuation metrics suggest the stock may be undervalued. Overall, the stock is positioned well financially, but technical indicators and valuation must be monitored for better entry points.

To see Spark’s full report on FMCB stock, click here.