NasdaqCM:FMNB

Stock Analysis Report

Executive Summary

Farmers National Banc Corp., through its subsidiaries, operates in the banking, trust, retirement consulting, insurance, and financial management industries.

Rewards

Trading at 34.9% below its fair value

Earnings are forecast to grow 8.12% per year

Earnings have grown 29.6% per year over the past 5 years

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Farmers National Banc's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FMNB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

FMNB

0.3%

US Banks

0.9%

US Market


1 Year Return

11.4%

FMNB

12.0%

US Banks

20.0%

US Market

Return vs Industry: FMNB matched the US Banks industry which returned 12.1% over the past year.

Return vs Market: FMNB underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

FMNBIndustryMarket
7 Day-1.0%0.3%0.9%
30 Day1.1%-1.3%1.4%
90 Day3.9%1.2%8.8%
1 Year14.3%11.4%15.3%12.0%22.5%20.0%
3 Year21.1%13.9%25.1%16.2%49.9%40.3%
5 Year122.6%102.9%76.7%56.6%73.2%54.1%

Price Volatility Vs. Market

How volatile is Farmers National Banc's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Farmers National Banc undervalued compared to its fair value and its price relative to the market?

34.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FMNB ($16.11) is trading below our estimate of fair value ($24.73)

Significantly Below Fair Value: FMNB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FMNB is good value based on its PE Ratio (12.5x) compared to the Banks industry average (12.6x).

PE vs Market: FMNB is good value based on its PE Ratio (12.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: FMNB is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: FMNB is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Farmers National Banc forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMNB's forecast earnings growth (8.1% per year) is above the savings rate (1.7%).

Earnings vs Market: FMNB's earnings (8.1% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: FMNB's revenue (9.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: FMNB's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FMNB's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Farmers National Banc performed over the past 5 years?

29.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMNB has high quality earnings.

Growing Profit Margin: FMNB's current net profit margins (32.9%) are higher than last year (32.2%).


Past Earnings Growth Analysis

Earnings Trend: FMNB's earnings have grown significantly by 29.6% per year over the past 5 years.

Accelerating Growth: FMNB's earnings growth over the past year (9.8%) is below its 5-year average (29.6% per year).

Earnings vs Industry: FMNB earnings growth over the past year (9.8%) underperformed the Banks industry 12.2%.


Return on Equity

High ROE: FMNB's Return on Equity (11.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Farmers National Banc'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: FMNB has a low level of unsold assets or inventory.

Debt Coverage by Assets: FMNB's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: FMNB has an appropriate level of bad loans (0.35%)


Next Steps

Dividend

What is Farmers National Banc's current dividend yield, its reliability and sustainability?

2.48%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: FMNB's dividend (2.48%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FMNB'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: FMNB's dividend payments have been volatile in the past 10 years.

Growing Dividend: FMNB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.5%), FMNB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FMNB's dividends in 3 years are forecast to be well covered by earnings (33.7% payout ratio).


Next Steps

Management

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

8.3yrs

Average board tenure


CEO

Kevin Helmick (47yo)

6.3yrs

Tenure

US$984,567

Compensation

Mr. Kevin J. Helmick has been the Chief Executive Officer and President of Farmers National Banc Corp. and its subsidiary The Farmers National Bank/Farmers Bank since November 2013. Mr. Helmick served as a ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD984.57K) is below average for companies of similar size in the US market ($USD1.68M).

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


Board Members

NamePositionTenureCompensationOwnership
Kevin Helmick
President6.3yrsUS$984.57k0.37% $1.7m
Ralph Macali
Independent Director18.2yrsUS$45.00k0.15% $686.4k
Anne Crawford
Independent Director15.9yrsUS$45.00k0.27% $1.3m
David Paull
Independent Director9.1yrsUS$50.00k0.12% $577.3k
James Smail
Non-Executive Vice Chairman4.6yrsUS$93.00k5.76% $27.0m
Lance Ciroli
Chairman of the Board8.3yrsUS$75.00k0.17% $786.1k
Gregory Bestic
Independent Director8.8yrsUS$59.00k0.14% $678.2k
Terry Moore
Independent Director5.8yrsUS$48.75k0.14% $672.9k
Edward Muransky
Independent Director2.8yrsUS$45.00k0.10% $467.5k

8.3yrs

Average Tenure

63yo

Average Age

Experienced Board: FMNB'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: FMNB 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 National Banc Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Farmers National Banc Corp.
  • Ticker: FMNB
  • Exchange: NasdaqCM
  • Founded: 1887
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$468.305m
  • Shares outstanding: 29.07m
  • Website: https://www.farmersbankgroup.com

Number of Employees


Location

  • Farmers National Banc Corp.
  • 20 South Broad Street
  • Canfield
  • Ohio
  • 44406
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMNBNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMar 1994

Biography

Farmers National Banc Corp., through its subsidiaries, operates in the banking, trust, retirement consulting, insurance, and financial management industries. The company offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, MasterCard and Visa credit cards, brokerage, and other services. It also provides personal and corporate trust services in the areas of estate settlement, trust administration, and employee benefit plans; retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company operates in through 39 locations and two-branch locations in southwestern Pennsylvania. Farmers National Banc Corp. was founded in 1887 and is headquartered in Canfield, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:36
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
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.