NasdaqCM:FMAO

Stock Analysis Report

Farmers & Merchants Bancorp

Executive Summary

Farmers & Merchants Bancorp, Inc. operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking, retail banking, and other financial products and services to individuals and small businesses in northwest Ohio and northeast Indiana.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Farmers & Merchants Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

FMAO

2.7%

US Banks

0.4%

US Market


1 Year Return

-37.7%

FMAO

2.7%

US Banks

6.9%

US Market

Return vs Industry: FMAO underperformed the US Banks industry which returned 2.7% over the past year.

Return vs Market: FMAO underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

FMAOIndustryMarket
7 Day-0.3%2.7%0.4%
30 Day-5.3%0.7%-1.1%
90 Day-8.3%3.0%-0.5%
1 Year-36.4%-37.7%5.7%2.7%9.3%6.9%
3 Year64.2%55.6%52.1%41.6%45.8%36.4%
5 Year129.0%103.4%69.2%50.7%62.9%45.1%

Price Volatility Vs. Market

How volatile is Farmers & Merchants Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Farmers & Merchants Bancorp undervalued compared to its fair value and its price relative to the market?

15.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: FMAO ($25.68) is trading above our estimate of fair value ($20.71)

Significantly Undervalued: FMAO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FMAO is poor value based on its PE Ratio (15.9x) compared to the Banks industry average (12.6x).

PE vs Market: FMAO is good value based on its PE Ratio (15.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: FMAO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: FMAO is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Farmers & Merchants Bancorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMAO's forecast earnings growth (11.1% per year) is above the savings rate (2.7%).

Earnings vs Market: FMAO's earnings (11.1% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: FMAO's earnings are forecast to grow, but not significantly.

Revenue vs Market: FMAO's revenue is expected to decline over the next 3 years (-3.4% per year).

High Growth Revenue: FMAO's revenue is forecast to decline over the next 3 years (-3.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if FMAO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Farmers & Merchants Bancorp performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FMAO's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: FMAO's earnings growth over the past year (13.5%) exceeds its 5-year average (11.4% per year).

Earnings vs Industry: FMAO earnings growth over the past year (13.5%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: FMAO's Return on Equity (7.4%) is considered low.


Return on Assets

ROA vs Industry: FMAO has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate FMAO's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Farmers & Merchants Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FMAO has a low level of unsold assets or inventory.

Debt Coverage by Assets: FMAO's debt is covered by short term assets (assets are 2.518200x debt).


Financial Institutions Analysis

Asset Level: FMAO's level of assets compared to its equity is low.

Allowance for Bad Loans: FMAO has a sufficient allowance for bad loans.

Low Risk Liabilities: FMAO's liabilities are made up of primarily low risk sources of funding.

Loan Level: FMAO has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FMAO's loans are broadly funded by customer deposits.

Level of Bad Loans: FMAO has an appropriate level of bad loans (0.12%)


Next Steps

Dividend

What is Farmers & Merchants Bancorp's current dividend yield, its reliability and sustainability?

2.34%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FMAO's dividend (2.34%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FMAO's dividend (2.34%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: FMAO's dividends per share have been stable in the past 10 years.

Growing Dividend: FMAO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.5%), FMAO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Farmers & Merchants Bancorp's salary, the management and board of directors tenure and is there insider trading?

11.8yrs

Average management tenure


CEO

Lars Eller (52yo)

0.7yrs

Tenure

US$425,843

Compensation

Mr. Lars B. Eller is President and Chief Executive Officer at Farmers & Merchants Bancorp, Inc. since February 5, 2019. Mr. Eller is President and Chief Executive Officer at Farmers & Merchants State Bank  ...


CEO Compensation Analysis

Compensation vs. Market: Lars has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Lars's compensation with company performance.


Management Age and Tenure

11.8yrs

Average Tenure

59yo

Average Age

Experienced Management: FMAO's management team is seasoned and experienced (11.8 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

64yo

Average Age

Experienced Board: FMAO's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: FMAO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$16,56330 Aug 19
Marcia Latta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares662
Max PriceUS$25.02
BuyUS$5,41627 Aug 19
Lars Eller
EntityIndividual
Role
Chief Executive Officer
President
Shares214
Max PriceUS$25.31
BuyUS$30,43527 Aug 19
Lars Eller
EntityIndividual
Role
Chief Executive Officer
President
Shares1,186
Max PriceUS$25.75

Ownership Breakdown


Management Team

  • Kevin Sauder (58yo)

    VP & Director

    • Tenure: 15.8yrs
    • Compensation: US$38.35k
  • Rex Rice (60yo)

    Executive VP & Senior Commercial Banking Manager

    • Tenure: 0yrs
    • Compensation: US$353.36k
  • Ed Leininger (62yo)

    Executive VP & COO

    • Tenure: 15.3yrs
    • Compensation: US$331.11k
  • Barb Britenriker (57yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$438.45k
  • Todd Graham (68yo)

    Executive VP & Chief Lending Officer

    • Tenure: 11.8yrs
    • Compensation: US$326.49k
  • Lars Eller (52yo)

    President

    • Tenure: 0.7yrs
    • Compensation: US$425.84k
  • Diann Meyer-Grieser (58yo)

    VP & Human Resource Manager

    • Tenure: 0yrs
  • Marilyn Johnson

    VP and Compliance & CRA Manager

    • Tenure: 0yrs
  • J. Filogamo (66yo)

    Senior VP & Marketing Manager

    • Tenure: 0yrs
  • Deborah Shinabery

    VP & Sales Manager

    • Tenure: 0yrs

Board Members

  • Kevin Sauder (58yo)

    VP & Director

    • Tenure: 15.8yrs
    • Compensation: US$38.35k
  • Anthony Rupp (69yo)

    Vice Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$37.13k
  • Steven Everhart (64yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$42.80k
  • Jack Johnson (66yo)

    Chairman of the Board

    • Tenure: 6.3yrs
    • Compensation: US$44.55k
  • Paul Siebenmorgen (69yo)

    Director

    • Tenure: 14.5yrs
    • Compensation: US$820.22k
  • Steven Planson (59yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$39.90k
  • Marcia Latta (57yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$35.98k
  • Eugene Burkholder (66yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$34.85k
  • Lars Eller (52yo)

    President

    • Tenure: 0.7yrs
    • Compensation: US$425.84k
  • Andrew Briggs (64yo)

    1st Senior VP of Business Development & Director

    • Tenure: 0.8yrs

Company Information

Farmers & Merchants Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Farmers & Merchants Bancorp, Inc.
  • Ticker: FMAO
  • Exchange: NasdaqCM
  • Founded: 1897
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$282.794m
  • Shares outstanding: 11.01m
  • Website: https://www.fm.bank

Number of Employees


Location

  • Farmers & Merchants Bancorp, Inc.
  • 307 North Defiance Street
  • Archbold
  • Ohio
  • 43502
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMAONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDNov 2004

Biography

Farmers & Merchants Bancorp, Inc. operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking, retail banking, and other financial products and services to  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:47
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.