NasdaqCM:FMAO

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Flawless balance sheet established 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

Stable Share Price: FMAO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FMAO's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

4.1%

FMAO

5.7%

US Banks

2.1%

US Market


1 Year Return

-7.2%

FMAO

-17.0%

US Banks

19.8%

US Market

Return vs Industry: FMAO exceeded the US Banks industry which returned -17% over the past year.

Return vs Market: FMAO underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

FMAOIndustryMarket
7 Day4.1%5.7%2.1%
30 Day12.0%23.3%8.1%
90 Day10.5%18.5%6.0%
1 Year-4.6%-7.2%-14.0%-17.0%22.5%19.8%
3 Year-37.1%-40.8%-3.3%-11.4%46.5%36.8%
5 Year107.4%85.2%40.4%22.9%96.9%75.3%

Long-Term 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?

14.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FMAO ($24.07) is trading above our estimate of fair value ($22.98)

Significantly Below Fair Value: 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 (14.9x) compared to the US Banks industry average (11.5x).

PE vs Market: FMAO is good value based on its PE Ratio (14.9x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: FMAO is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: FMAO is overvalued based on its PB Ratio (1.1x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

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

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMAO's forecast earnings growth (6.8% per year) is above the savings rate (2.2%).

Earnings vs Market: FMAO's earnings (6.8% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: FMAO's revenue (1.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: FMAO's revenue (1.5% 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 (7.6%).


Next Steps

Past Performance

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

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMAO has high quality earnings.

Growing Profit Margin: FMAO's current net profit margins (27.4%) are higher than last year (27.2%).


Past Earnings Growth Analysis

Earnings Trend: FMAO's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: FMAO's earnings growth over the past year (6.8%) is below its 5-year average (13.1% per year).

Earnings vs Industry: FMAO earnings growth over the past year (6.8%) exceeded the Banks industry -4.3%.


Return on Equity

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


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


Financial Institutions Analysis

Asset Level: FMAO's Assets to Equity ratio (7.5x) is low.

Allowance for Bad Loans: FMAO has a sufficient allowance for bad loans (144%).

Low Risk Liabilities: 96% 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 (74%).

Low Risk Deposits: FMAO's Loans to Deposits ratio (89%) is appropriate.

Level of Bad Loans: FMAO has an appropriate level of bad loans (0.6%).


Next Steps

Dividend

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

2.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FMAO's dividend (2.83%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: FMAO's dividend (2.83%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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 (40.1%), 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 (38.6% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Lars Eller (53 yo)

1.75yrs

Tenure

US$565,372

Compensation

Mr. Lars B. Eller is President and Chief Executive Officer at Farmers & Merchants Bancorp, Inc. since February 1, 2019. Mr. Eller is President and Chief Executive Officer at Farmers & Merchants State Bank ...


CEO Compensation Analysis

Compensation vs Market: Lars's total compensation ($USD565.37K) is below average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Lars's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lars Eller
President1.75yrsUS$565.37k0.10%
$ 266.6k
Barbara Britenriker
Executive VPno dataUS$354.68k0.21%
$ 559.3k
Edward Leininger
Executive VP & COO16.33yrsUS$284.68k0.21%
$ 545.4k
Andrew Briggs
1st Senior VP of Business Development & Director1.83yrsUS$41.30k6.43%
$ 17.1m
Shalini Singhal
Chief Information Officerno datano datano data
Marilyn Johnson
VP and Compliance & CRA Managerno datano datano data
Deborah Shinabery
VP of Sales & Retail Skills Development Managerno datano datano data
Amy Cover
VP & Marketing Manager0.83yrno datano data
Diann Meyer-Grieser
VP & Human Resource Managerno datano datano data
Benét Rupp
Senior VP & Chief People Officer1.42yrsno data0.0095%
$ 25.2k
David Gerken
Senior VP & Commercial Loan Managerno datano datano data
Robert Graham
Senior VP & Commercial Bankerno datano datano data

1.6yrs

Average Tenure

58.5yo

Average Age

Experienced Management: FMAO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lars Eller
President1.75yrsUS$565.37k0.10%
$ 266.6k
Andrew Briggs
1st Senior VP of Business Development & Director1.83yrsUS$41.30k6.43%
$ 17.1m
Kevin Sauder
Independent Director16.83yrsUS$38.70k0.035%
$ 94.2k
Anthony Rupp
Independent Vice Chairman of the Boardno dataUS$38.80k0.35%
$ 918.3k
Steven Everhart
Independent Director17.83yrsUS$48.25k0.18%
$ 475.5k
Jack Johnson
Independent Chairman of the Board7.33yrsUS$50.50k0.035%
$ 93.2k
Paul Siebenmorgen
Director15.58yrsUS$633.31k0.29%
$ 760.8k
Steven Planson
Independent Director12.83yrsUS$45.90k0.18%
$ 476.1k
Marcia Latta
Independent Director11.83yrsUS$37.60k0.041%
$ 108.1k
Eugene Burkholder
Independent Director8.67yrsUS$41.00k0.22%
$ 581.1k
Jo Hornish
Independent Director7.33yrsUS$43.80k0.26%
$ 702.3k
K. Stamm
Independent Director4yrsUS$42.60k1.46%
$ 3.9m

8.7yrs

Average Tenure

65.5yo

Average Age

Experienced Board: FMAO's board of directors are considered experienced (8.7 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$265.593m
  • Shares outstanding: 11.03m
  • 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 Analysis2020/11/26 23:35
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.