OTCPK:FMCB

Stock Analysis Report

Farmers & Merchants Bancorp

Executive Summary

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides a range of banking services to businesses and individuals primarily in the mid Central Valley of California.

Rewards

Trading at 0.3% below its fair value

Earnings grew by 50.1% over the past year

Pays a reliable dividend of 1.86%

Risk Analysis

No risks detected for FMCB from our risk checks.


Snowflake Analysis

Solid track record with adequate balance sheet and pays a dividend.


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: FMCB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

FMCB

-1.0%

US Banks

0.5%

US Market


1 Year Return

7.7%

FMCB

10.6%

US Banks

20.3%

US Market

Return vs Industry: FMCB underperformed the US Banks industry which returned 10.6% over the past year.

Return vs Market: FMCB underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

FMCBIndustryMarket
7 Day0%-1.0%0.5%
30 Day0%-1.2%2.0%
90 Day-1.9%0.4%9.4%
1 Year9.6%7.7%13.8%10.6%22.8%20.3%
3 Year35.2%27.5%23.5%14.6%50.1%40.4%
5 Year85.7%67.4%74.0%54.2%73.1%54.1%

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

No news available

Valuation

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

0.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FMCB ($770) is trading below our estimate of fair value ($772.06)

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


Price To Earnings Ratio

PE vs Industry: FMCB is good value based on its PE Ratio (11.1x) compared to the Banks industry average (12.6x).

PE vs Market: FMCB is good value based on its PE Ratio (11.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FMCB is overvalued based on its PB Ratio (1.7x) 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 0 analysts?

2.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Farmers & Merchants Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Farmers & Merchants Bancorp is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Farmers & Merchants Bancorp's filings and announcements here.
  • Explore growth companies in the Banks industry.

Past Performance

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

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMCB has high quality earnings.

Growing Profit Margin: FMCB's current net profit margins (35.4%) are higher than last year (27.7%).


Past Earnings Growth Analysis

Earnings Trend: FMCB's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: FMCB's earnings growth over the past year (50.1%) exceeds its 5-year average (15.2% per year).

Earnings vs Industry: FMCB earnings growth over the past year (50.1%) exceeded the Banks industry 12.3%.


Return on Equity

High ROE: FMCB's Return on Equity (15.3%) is considered low.


Return on Assets


Return on Capital Employed


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: FMCB has a low level of unsold assets or inventory.

Debt Coverage by Assets: FMCB's debt is covered by short term assets (assets are 23.6x debt).


Financial Institutions Analysis

Asset Level: FMCB's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if FMCB has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: Insufficient data to determine if FMCB has an appropriate level of bad loans.


Next Steps

Dividend

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

1.86%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: FMCB's dividend (1.86%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FMCB's dividend (1.86%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.3%), FMCB'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

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

7.4yrs

Average management tenure


CEO

Kent Steinwert (66yo)

23.1yrs

Tenure

US$4,226,569

Compensation

Mr. Kent A. Steinwert has been the Chief Executive Officer and President of Farmers & Merchants Bank of Central California, a subsidiary of Farmers & Merchants BanCorp Since August 18, 1997. Mr. Steinwert  ...


CEO Compensation Analysis

Compensation vs Market: Kent's total compensation ($USD4.23M) is above average for companies of similar size in the US market ($USD2.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kent Steinwert
Chairman23.1yrsUS$4.23m3.72% $22.6m
Stephen Haley
Executive VP16.8yrsUS$1.56m0.56% $3.4m
Kenneth Smith
Executive VP & Senior Credit Officer8.5yrsUS$1.36m0.41% $2.5m
David Zitterow
Executive VP & Wholesale Banking Manager of Farmers & Merchants Bank of Central California2.7yrsUS$719.81k0.047% $283.4k
Deborah Skinner
Chief Administrative Officer & Executive VP of Farmers & Merchants Bank of Central California19.2yrsUS$1.44m0.50% $3.0m
Jay Colombini
Executive VP & Wholesale Banking Manager of Farmers & Merchants Bank of Central California6.3yrsUS$988.15k0.57% $3.5m
Ryan Misasi
Executive VP and Retail Banking Manager of Farmers & Merchants Bank of Central California5.8yrsUS$805.84k0.21% $1.3m
Charles Broom
Senior VP & Director of Human Resources1.5yrsno datano data

7.4yrs

Average Tenure

56yo

Average Age

Experienced Management: FMCB's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kent Steinwert
Chairman23.1yrsUS$4.23m3.72% $22.6m
Calvin Suess
Independent Director30.1yrsUS$214.60k0.43% $2.6m
Kevin Sanguinetti
Independent Director19.1yrsUS$213.40k0.94% $5.7m
Edward Corum
Independent Director17.1yrsUS$252.00k0.24% $1.4m
Gary Long
Independent Director5.6yrsUS$209.20k0.18% $1.1m
Stephenson Green
Independent Director1.9yrsUS$184.50k0.053% $322.6k
Terrence Young
Director1.9yrsUS$155.15k0.040% $241.8k

9.8yrs

Average Tenure

66yo

Average Age

Experienced Board: FMCB's board of directors are considered experienced (9.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Farmers & Merchants Bancorp
  • Ticker: FMCB
  • Exchange: OTCPK
  • Founded: 1916
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$606.226m
  • Shares outstanding: 787.31k
  • Website: https://www.fmbonline.com

Number of Employees


Location

  • Farmers & Merchants Bancorp
  • 111 West Pine Street
  • Lodi
  • California
  • 95240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMCBOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 1994

Biography

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides a range of banking services to businesses and individuals primarily in the mid Central Valley of California. The company accepts various deposit products, such as checking, savings, money market, time certificates of deposit, and individual retirement accounts. It also offers lending products, including commercial, commercial real estate, real estate construction, agribusiness, and consumer loans, as well as equipment leases and credit card services; commercial products comprising term loans, leases, lines of credit, other working capital financing, as well as letters of credit; and automobile financing, residential real estate loans, home improvement loans, and home equity lines of credit. In addition, the company provides various services consisting of credit card programs for merchants, lockbox and other collection services, account reconciliation, investment sweep, online account access, and electronic funds transfers by way of domestic and international wire and automated clearinghouse. Further, it offers investment products, such as mutual funds and annuities; and online banking services for business and personal accounts. The company serves customers through a network of 29 full-service branches, as well as a stand-alone automated teller machine. Farmers & Merchants Bancorp was founded in 1916 and is headquartered in Lodi, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:55
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
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.