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FMAO

Farmers & Merchants BancorpNasdaqCM:FMAO Stock Report

Market Cap

US$376.5m

7D

3.6%

1Y

31.8%

Updated

02 Dec, 2021

Data

Company Financials +
FMAO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends5/6

FMAO Stock Overview

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

Farmers & Merchants Bancorp Competitors

Reliant Bancorp

NasdaqCM:RBNC

US$555.1m

MVB Financial

NasdaqCM:MVBF

US$494.5m

LCNB

NasdaqCM:LCNB

US$238.1m

First Savings Financial Group

NasdaqCM:FSFG

US$184.4m

Price History & Performance

Summary of all time highs, changes and price drops for Farmers & Merchants Bancorp
Historical stock prices
Current Share PriceUS$29.02
52 Week HighUS$30.00
52 Week LowUS$21.06
Beta0.37
1 Month Change12.52%
3 Month Change24.44%
1 Year Change31.79%
3 Year Change-27.40%
5 Year Change69.41%
Change since IPO111.05%

Recent News & Updates

Sep 20
Farmers & Merchants Bancorp (NASDAQ:FMAO) Has Affirmed Its Dividend Of US$0.18

Farmers & Merchants Bancorp (NASDAQ:FMAO) Has Affirmed Its Dividend Of US$0.18

Farmers & Merchants Bancorp, Inc. ( NASDAQ:FMAO ) has announced that it will pay a dividend of US$0.18 per share on the...

Jul 23
Upgrade: Analysts Just Made A Notable Increase To Their Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) Forecasts

Upgrade: Analysts Just Made A Notable Increase To Their Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) Forecasts

Farmers & Merchants Bancorp, Inc. ( NASDAQ:FMAO ) shareholders will have a reason to smile today, with the analysts...

Shareholder Returns

FMAOUS BanksUS Market
7D3.6%-7.2%-4.9%
1Y31.8%36.7%17.8%

Return vs Industry: FMAO underperformed the US Banks industry which returned 36.7% over the past year.

Return vs Market: FMAO exceeded the US Market which returned 17.8% over the past year.

Price Volatility

Is FMAO's price volatile compared to industry and market?
FMAO volatility
FMAO Average Weekly Movement3.7%
Banks Industry Average Movement3.7%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

Stable Share Price: FMAO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FMAO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1897366Lars Ellerhttps://www.fm.bank

Farmers & Merchants Bancorp, Inc. operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking services to individuals and small businesses in northwest Ohio and northeast Indiana. The company offers checking account services, as well as savings and time deposit services, such as certificates of deposit; and custodial services for individual retirement and health savings accounts. It also provides commercial, agricultural, and residential mortgage, as well as consumer and credit card lending products; loans for farm land, farm equipment, and livestock; operating loans for seeds, fertilizers, and feeds; home improvement loans; and loans for autos, trucks, recreational vehicles, and motorcycles.

Farmers & Merchants Bancorp Fundamentals Summary

How do Farmers & Merchants Bancorp's earnings and revenue compare to its market cap?
FMAO fundamental statistics
Market CapUS$376.49m
Earnings (TTM)US$22.41m
Revenue (TTM)US$78.88m

16.8x

P/E Ratio

1.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FMAO income statement (TTM)
RevenueUS$78.88m
Cost of RevenueUS$0
Gross ProfitUS$78.88m
ExpensesUS$56.47m
EarningsUS$22.41m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.73
Gross Margin100.00%
Net Profit Margin28.41%
Debt/Equity Ratio32.2%

How did FMAO perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

34%

Payout Ratio

Valuation

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

19.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FMAO ($29.02) is trading below our estimate of fair value ($36.01)

Significantly Below Fair Value: FMAO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FMAO is poor value based on its PE Ratio (16.8x) compared to the US Banks industry average (10.5x).

PE vs Market: FMAO is poor value based on its PE Ratio (16.8x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: FMAO is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: FMAO is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.1x).


Future Growth

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

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMAO's forecast earnings growth (15.2% per year) is above the savings rate (2%).

Earnings vs Market: FMAO's earnings (15.2% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: FMAO's revenue (6.2% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: FMAO's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FMAO's Return on Equity is forecast to be low in 3 years time (9.1%).


Past Performance

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

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMAO has high quality earnings.

Growing Profit Margin: FMAO's current net profit margins (28.4%) are higher than last year (27.4%).


Past Earnings Growth Analysis

Earnings Trend: FMAO's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: FMAO's earnings growth over the past year (25.2%) exceeds its 5-year average (13.7% per year).

Earnings vs Industry: FMAO earnings growth over the past year (25.2%) underperformed the Banks industry 43%.


Return on Equity

High ROE: FMAO's Return on Equity (8.9%) is considered low.


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


Financial Institutions Analysis

Asset Level: FMAO's Assets to Equity ratio (8.7x) is low.

Allowance for Bad Loans: FMAO has a sufficient allowance for bad loans (251%).

Low Risk Liabilities: 95% of FMAO's liabilities are made up of primarily low risk sources of funding.

Loan Level: FMAO has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: FMAO's Loans to Deposits ratio (79%) is appropriate.

Level of Bad Loans: FMAO has an appropriate level of bad loans (0.4%).


Dividend

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

2.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FMAO's dividend (2.48%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: FMAO's dividend (2.48%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

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 (34.2%), FMAO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FMAO's dividends in 3 years are forecast to be well covered by earnings (33% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Lars Eller (54 yo)

2.75yrs

Tenure

US$587,017

Compensation

Mr. Lars B. Eller is President and Chief Executive Officer at Farmers & Merchants Bancorp, Inc. since February 01, 2019. Mr. Eller is President and Chief Executive Officer at Farmers & Merchants State Bank...


CEO Compensation Analysis

Compensation vs Market: Lars's total compensation ($USD587.02K) is below average for companies of similar size in the US market ($USD1.75M).

Compensation vs Earnings: Lars's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FMAO's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: FMAO's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.6%.


Top Shareholders

Company Information

Farmers & Merchants Bancorp, Inc.'s 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$376.492m
  • Shares outstanding: 12.98m
  • Website: https://www.fm.bank

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 00:04
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.