OTCPK:FFMH

Stock Analysis Report

First Farmers and Merchants

Executive Summary

First Farmers and Merchants Corporation operates as the bank holding company for First Farmers and Merchants Bank that provides various banking and financial services in Tennessee and Alabama.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

FFMH

2.9%

US Banks

0.07%

US Market


1 Year Return

-4.3%

FFMH

8.6%

US Banks

8.9%

US Market

Return vs Industry: FFMH underperformed the US Banks industry which returned 8.6% over the past year.

Return vs Market: FFMH underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

FFMHIndustryMarket
7 Day0%2.9%0.07%
30 Day-1.0%3.4%-0.3%
90 Day-6.3%2.1%-1.6%
1 Year-2.4%-4.3%11.8%8.6%11.3%8.9%
3 Year59.8%50.0%54.8%44.1%46.3%36.8%
5 Yearn/a70.2%51.6%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

11.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FFMH ($41.62) is trading above our estimate of fair value ($32.14)

Significantly Below Fair Value: FFMH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FFMH is good value based on its PE Ratio (11.7x) compared to the Banks industry average (12.6x).

PE vs Market: FFMH is good value based on its PE Ratio (11.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FFMH's PEG Ratio to determine if it is good value.


Price to Book Ratio

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


Next Steps

Future Growth

How is First Farmers and Merchants forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFMH's forecast earnings growth (3.1% per year) is above the savings rate (2.7%).

Earnings vs Market: FFMH's earnings (3.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: Insufficient data to determine if FFMH's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if FFMH's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has First Farmers and Merchants performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FFMH's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: FFMH's earnings growth over the past year (30.1%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: FFMH earnings growth over the past year (30.1%) exceeded the Banks industry 29.7%.


Return on Equity

High ROE: FFMH's Return on Equity (11.3%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is First Farmers and Merchants'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: FFMH has a low level of unsold assets or inventory.

Debt Coverage by Assets: FFMH's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: FFMH has an appropriate level of bad loans (0.19%)


Next Steps

Dividend

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

2.02%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FFMH's dividend (2.02%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FFMH's dividend (2.02%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: Whilst dividend payments have been stable, FFMH has been paying a dividend for less than 10 years.

Growing Dividend: FFMH's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), FFMH'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 First Farmers and Merchants's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Randy Stevens (67yo)

17.3yrs

Tenure

US$814,116

Compensation

Mr. Thomas Randall Stevens, also known as Randy, has been the Chief Executive Officer at First Farmers Merchants Corp. and its subsidiary, First Farmers and Merchants Bank(a/k/a Merchants National Bank of  ...


CEO Compensation Analysis

Compensation vs. Market: Randy's total compensation ($USD0.00) is too low to compare against companies of similar size in the US market ($USD1.22M).

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


Management Age and Tenure

4.4yrs

Average Tenure

58yo

Average Age

Experienced Management: FFMH's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

9.5yrs

Average Tenure

67yo

Average Age

Experienced Board: FFMH's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Waymon Hickman (84yo)

    Senior Chairman of the Board and Honorary Director

    • Tenure: 0yrs
    • Compensation: US$243.85k
  • Randy Stevens (67yo)

    Chairman & CEO

    • Tenure: 17.3yrs
    • Compensation: US$814.12k
  • Leslie Brooks

    Davidson County President

    • Tenure: 0yrs
    • Compensation: US$175.51k
  • Brian Williams (49yo)

    President & Director

    • Tenure: 3.5yrs
    • Compensation: US$274.56k
  • Billy Harvel

    Vice President

    • Tenure: 0yrs
  • Paul Butts

    Senior Executive of Retail Banking

    • Tenure: 0yrs
  • M. Church

    President of Maury County

    • Tenure: 0yrs
  • R. Holland

    President of Williamson County

    • Tenure: 0yrs
  • Bobby Krimmel (37yo)

    CFO & Treasurer

    • Tenure: 4.4yrs
    • Compensation: US$189.59k
  • Stephanie Harlan

    Corporate Secretary

    • Tenure: 0yrs

Board Members

  • Waymon Hickman (84yo)

    Senior Chairman of the Board and Honorary Director

    • Tenure: 0yrs
    • Compensation: US$243.85k
  • Randy Stevens (67yo)

    Chairman & CEO

    • Tenure: 17.3yrs
    • Compensation: US$814.12k
  • Tom Gordon (67yo)

    Independent Director

    • Tenure: 33.8yrs
    • Compensation: US$40.30k
  • Tim Pettus (67yo)

    Vice Chairman

    • Tenure: 3.8yrs
    • Compensation: US$501.65k
  • Brian Williams (49yo)

    President & Director

    • Tenure: 3.5yrs
    • Compensation: US$274.56k
  • Virgil Moore

    Senior Chairman of the Board and Honorary Director

    • Tenure: 0yrs
  • Sonny Scoggins (69yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$29.30k
  • Dalton Mounger (68yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$68.44k
  • Jonathan Edwards (58yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$57.39k
  • Jeff Aiken (55yo)

    Director

    • Tenure: 2.5yrs

Company Information

First Farmers and Merchants Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Farmers and Merchants Corporation
  • Ticker: FFMH
  • Exchange: OTCPK
  • Founded: 1909
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$183.331m
  • Shares outstanding: 4.40m
  • Website: https://www.myfirstfarmers.com

Number of Employees


Location

  • First Farmers and Merchants Corporation
  • 816 South Garden Street
  • Columbia
  • Tennessee
  • 38401
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FFMHOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMay 2009

Biography

First Farmers and Merchants Corporation operates as the bank holding company for First Farmers and Merchants Bank that provides various banking and financial services in Tennessee and Alabama. The company’ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:12
End of Day Share Price2019/10/16 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.