Farmers & Merchants Bancorp (FMCB) AI Stock Analysis

• Market Cap: $783.62M
• Dividend Yield: 1.72%
• Average Volume (3M): 148.00
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.14
• 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: 691,945
• 10 Day Avg. Volume: 81
• 30 Day Avg. Volume: 148
• PEG Ratio: 0.71
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 2.54
• P/FCF Ratio: 7.98
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: 5.80
• 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: 76 Outperform
• Price Target: $1,271.00 ▲(21.05% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is driven primarily by strong financial performance and a conservatively positioned balance sheet, supported by an attractive valuation (low P/E with a solid dividend). Offsetting these strengths, technical indicators show weak near-term momentum with the stock below key moving averages, despite oversold signals. Recent corporate updates are supportive but secondary to fundamentals and price trend.

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

FMCB primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is generated by earning interest on loans and other interest-earning assets (such as investment securities and interest-bearing deposits with other institutions) and paying interest on funding sources (primarily customer deposits and any borrowings); the spread between these yields and costs (net interest margin), along with loan and deposit volumes, is the core driver of earnings. The loan portfolio typically contributes the largest share of interest income; key profit drivers include loan growth, pricing on new and renewing loans, credit performance (since loan losses and provisioning reduce earnings), and interest-rate movements that affect both asset yields and deposit/borrowing costs. Noninterest income is earned from fees and service charges associated with banking activities, such as deposit account fees, payment and transaction-related fees, and other bank service fees; these revenues diversify earnings beyond interest income. Additional factors that influence profitability include operating efficiency (personnel, branch and technology costs), funding mix (the proportion of low-cost core deposits versus higher-cost deposits/borrowings), and overall economic conditions affecting loan demand and credit quality. Information on any significant partnerships is null.

Farmers & Merchants Bancorp Financial Statement Overview

Summary

Strong overall fundamentals: steady multi-year revenue and net income growth, consistently high profitability, conservative leverage (near-zero reported debt), and strong ROE. Main offsets are some margin normalization versus prior peaks and year-to-year variability in free cash flow growth.

Income Statement

Revenue has grown steadily from $173M (2020) to $303M (2025), with 2025 up ~3% year over year after stronger growth in prior years. Profitability remains a clear strength: net margins have consistently been ~31%–37% and operating profitability is high, though margins have eased versus 2021–2022 highs. Net income rose to $93.6M in 2025 from $58.7M in 2020, indicating solid earnings power despite some recent margin normalization.

Balance Sheet

The balance sheet appears conservatively positioned with very low reported debt (debt-to-equity near 0%–2% historically and 0% in 2025) alongside a growing equity base ($424M in 2020 to $646M in 2025). Returns on equity are consistently strong for a regional bank, running roughly ~14%–16% across the period, supporting the quality of capital generation. A key watch item is that assets have expanded to $5.69B, so maintaining underwriting and funding discipline is important as the balance sheet grows.

Cash Flow

Cash generation is consistently solid: operating cash flow is roughly $58M–$104M over 2020–2025, with 2025 at $104.2M. Free cash flow closely tracks operating cash flow and has generally covered net income well (about ~0.87x to ~1.00x), indicating earnings are supported by cash. Growth in free cash flow has been uneven (declines in 2020 and 2023, stronger rebounds in 2022 and 2025), suggesting some variability in cash conversion year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	303.13M	289.41M	265.69M	204.14M	183.71M
Gross Profit	239.29M	224.11M	217.92M	192.85M	177.47M
EBITDA	131.84M	125.18M	119.04M	102.17M	90.95M
Net Income	93.61M	88.46M	88.31M	75.09M	66.34M
Balance Sheet
Total Assets	5.69B	5.37B	5.31B	5.33B	5.18B
Cash, Cash Equivalents and Short-Term Investments	1.01B	676.98M	593.15M	741.12M	986.22M
Total Debt	11.96M	10.31M	10.31M	10.31M	10.31M
Total Liabilities	5.04B	4.80B	4.76B	4.84B	4.71B
Stockholders Equity	645.51M	573.07M	549.75M	485.31M	463.14M
Cash Flow
Free Cash Flow	96.62M	101.34M	88.38M	97.59M	57.89M
Operating Cash Flow	104.19M	103.73M	93.35M	101.78M	59.96M
Investing Cash Flow	-402.01M	-274.58M	-146.55M	-315.30M	-296.15M
Financing Cash Flow	230.12M	-27.23M	-124.42M	86.32M	567.81M

Farmers & Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1050.00
• 50DMA: Negative
• 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 Negative. The current price of 1050 is below the 20-day moving average (MA) of 1169.08, below the 50-day MA of 1150.09, and below the 200-day MA of 1052.17, indicating a neutral trend. The MACD of -6.09 indicates Positive momentum. The RSI at 32.76 is Neutral, neither overbought nor oversold. The STOCH value of 23.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FMCB.

Farmers & Merchants Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMCB	76 Outperform	$783.62M	8.08	14.91%	1.72%	2.21%	10.84%
CCBG	73 Outperform	$722.62M	11.80	11.55%	2.33%	9.43%	17.64%
HAFC	71 Outperform	$759.57M	10.60	9.85%	3.82%	3.34%	15.52%
MCBS	71 Outperform	$812.91M	9.71	15.62%	3.55%	-0.23%	10.95%
MBWM	70 Outperform	$858.64M	8.81	13.79%	3.05%	5.64%	6.24%
TRST	68 Neutral	$753.76M	12.13	8.86%	3.48%	5.75%	20.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Farmers & Merchants Bancorp Corporate Events

Farmers & Merchants Bancorp Declares Quarterly Cash Dividend

Farmers & Merchants Bancorp operates in the banking and financial services industry, providing traditional deposit and lending products to retail and commercial customers, and focusing on community-based banking services tied to its regional markets.

On February 10, 2026, Farmers & Merchants Bancorp announced that its Board of Directors declared a quarterly cash dividend, signaling continued capital returns to shareholders and underscoring the bank’s commitment to ongoing shareholder value in its regular distribution policy.

The most recent analyst rating on (FMCB) stock is a Buy with a $1340.00 price target. To see the full list of analyst forecasts on Farmers & Merchants Bancorp stock, see the FMCB Stock Forecast page.

Farmers & Merchants Bancorp 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.