OTCPK:FMFG

Stock Analysis Report

Farmers and Merchants Bancshares

Executive Summary

Farmers and Merchants Bancshares, Inc., through its subsidiary Farmers and Merchants Bank, provides commercial and retail banking services to individuals and businesses in Baltimore and Carroll counties in Maryland, and surrounding areas of northern Maryland.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

FMFG

4.1%

US Banks

1.0%

US Market


1 Year Return

-7.6%

FMFG

7.2%

US Banks

8.0%

US Market

Return vs Industry: FMFG underperformed the US Banks industry which returned 7.2% over the past year.

Return vs Market: FMFG underperformed the US Market which returned 8% over the past year.


Shareholder returns

FMFGIndustryMarket
7 Day0.1%4.1%1.0%
30 Day-1.8%2.8%-0.07%
90 Day-2.6%2.9%-1.0%
1 Year-5.0%-7.6%10.3%7.2%10.4%8.0%
3 Yearn/a53.9%43.3%46.2%36.7%
5 Yearn/a71.9%53.1%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

19.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FMFG ($29.8) is trading below our estimate of fair value ($36.86)

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


Price To Earnings Ratio

PE vs Industry: FMFG is good value based on its PE Ratio (10.5x) compared to the Banks industry average (12.6x).

PE vs Market: FMFG is good value based on its PE Ratio (10.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FMFG is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMFG's forecast earnings growth (4.5% per year) is above the savings rate (2.7%).

Earnings vs Market: FMFG's earnings (4.5% per year) are forecast to grow slower than the US market (14.5% per year).

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

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

High Growth Revenue: Insufficient data to determine if FMFG'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 FMFG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

4.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FMFG's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: FMFG's earnings growth over the past year (21.1%) exceeds its 5-year average (4.6% per year).

Earnings vs Industry: FMFG earnings growth over the past year (21.1%) underperformed the Banks industry 30.1%.


Return on Equity

High ROE: FMFG's Return on Equity (10%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

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

Debt Coverage by Assets: FMFG's debt is covered by short term assets (assets are 2.098030x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: FMFG has an appropriate level of bad loans (0.29%)


Next Steps

Dividend

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

2.95%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FMFG's dividend (2.95%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FMFG's dividend (2.95%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

Growing Dividend: FMFG's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.6%), FMFG'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 Farmers and Merchants Bancshares's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Jim Bosley (57yo)

2.9yrs

Tenure

US$373,980

Compensation

Mr. James R. Bosley has served as the President and Chief Executive Officer and as a Director of Farmers and Merchants Bancshares, Inc. since 2016. He is President and Chief Executive Officer of Farmers an ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Jim's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

2.9yrs

Average Tenure

57yo

Average Age

Experienced Management: FMFG's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

62yo

Average Age

Experienced Board: FMFG's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: FMFG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$30,40026 Sep 19
Bruce Schindler
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$30.40
SellUS$30,40026 Sep 19
Paul Wooden
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,000
Max PriceUS$30.40
BuyUS$20,84203 Apr 19
Edward Halle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares689
Max PriceUS$30.25
BuyUS$19,99503 Apr 19
Ronald Hux
EntityIndividual
Role
Member of the Board of Directors
Director
Shares661
Max PriceUS$30.25
SellUS$90,75003 Apr 19
Paul Wooden
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares3,000
Max PriceUS$30.25

Ownership Breakdown


Management Team

  • Mark Krebs (58yo)

    CFO, Executive VP & Treasurer

    • Tenure: 2.9yrs
    • Compensation: US$213.56k
  • Chris Oswald (57yo)

    Senior Vice President

    • Tenure: 19.8yrs
    • Compensation: US$248.35k
  • Lynnette Kitzmiller

    VP & Corporate Secretary

    • Tenure: 0yrs
  • Julie Harris-Hare

    • Tenure: 0yrs
  • Jim Bosley (57yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$373.98k

Board Members

  • John Schuster (66yo)

    Vice Chairman of the Board

    • Tenure: 2.9yrs
    • Compensation: US$29.27k
  • Joseph Mekulski (70yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$22.02k
  • Ronald Hux (61yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$11.43k
  • Jim Bosley (57yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$373.98k
  • Bruce Schindler (63yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$12.83k
  • Paul Wooden (69yo)

    Chairman of the Board

    • Tenure: 2.9yrs
    • Compensation: US$29.66k
  • Roger Cassell (58yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$18.85k
  • Edward Halle (68yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$19.71k
  • Steven Eline (54yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$14.24k
  • Teresa Smack (59yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$6.26k

Company Information

Farmers and Merchants Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Farmers and Merchants Bancshares, Inc.
  • Ticker: FMFG
  • Exchange: OTCPK
  • Founded: 1919
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$50.153m
  • Shares outstanding: 1.68m
  • Website: https://www.fmb1919.com

Number of Employees


Location

  • Farmers and Merchants Bancshares, Inc.
  • 4510 Lower Beckleysville Road
  • Suite H
  • Hampstead
  • Maryland
  • 21074
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMFGOTCPK (Pink Sheets LLC)YesNew Common StockUSUSDNov 2016

Biography

Farmers and Merchants Bancshares, Inc., through its subsidiary Farmers and Merchants Bank, provides commercial and retail banking services to individuals and businesses in Baltimore and Carroll counties in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:33
End of Day Share Price2019/10/18 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.