Farmers & Merchants Bancorp (FMCB) AI Stock Analysis

• Market Cap: $699.89M
• Dividend Yield: 1.81%
• Average Volume (3M): 147.00
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.10
• Revenue Growth: 8.92%
• EPS Growth: 3.79%
• Country: US
• Employees: 373
• Sector: Financial
• Sector Strength: 80
• Industry: Banks - Regional
• EPS (TTM): 121.02
• Shares Outstanding: 699,798
• 10 Day Avg. Volume: 238
• 30 Day Avg. Volume: 147
• PEG Ratio: 2.18
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.10
• Price to Cash Flow (P/CF): 13.30
• P/FCF Ratio: 7.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Farmers & Merchants Bancorp's strong financial performance, characterized by solid revenue and cash flow growth, underpins its excellent stock score. The valuation suggests the stock is undervalued, presenting potential growth opportunities. Despite neutral technical indicators reflecting market stability, the recent positive board change could enhance long-term governance.

Farmers & Merchants Bancorp Business Overview & Revenue Model

Company Description

Farmers & Merchants Bancorp (FMCB) is a banking institution primarily serving communities in California. Established in 1916, the bank offers a wide range of financial products and services, including personal and business banking, loans, mortgages, and wealth management. With a focus on customer service and community involvement, Farmers & Merchants Bancorp strives to meet the financial needs of individuals, families, and businesses in its service areas.

How the Company Makes Money

Farmers & Merchants Bancorp generates revenue through various financial services and products. The primary sources of income include interest income from loans and mortgages provided to individuals and businesses. Additionally, the bank earns from fees related to account maintenance, transaction services, and other banking activities. Wealth management and investment services also contribute to the revenue, offering investment advisory and management services. The bank's earnings are further supported by strategic partnerships with other financial institutions and service providers, enhancing their product offerings and customer reach.

Farmers & Merchants Bancorp Financial Statement Overview

Summary

Farmers & Merchants Bancorp demonstrates strong financial health with increasing revenues, solid profitability, and a stable capital structure free from debt burden. The company's ability to generate cash efficiently supports its operations and potential growth opportunities. While the balance sheet and cash flow statements suggest stability, attention to ROE fluctuations and investing activities is advisable to ensure continued financial strength.

Income Statement

The income statement reflects solid revenue growth with an increase from $163.08M in 2020 to $271.98M in 2024. Gross and net profit margins are strong, indicative of effective cost management and high profitability. The company has maintained a consistent net income, showcasing stability in operations. However, absence of EBITDA margin data for 2024 limits a complete assessment of operating efficiency.

Balance Sheet

The balance sheet is robust with a zero debt level as of 2024, reducing financial risk significantly. The equity ratio has improved, suggesting a solid capital structure. However, the ROE has shown some fluctuations, indicating variability in returns on equity investments. The increase in stockholders' equity over the years is a positive sign of financial health.

Cash Flow

Cash flow analysis shows strong free cash flow growth, reflecting effective cash management. The operating cash flow to net income ratio is healthy, indicating efficient conversion of earnings into cash. However, the consistent negative investing cash flow, despite being typical in banking, warrants monitoring as it may affect long-term liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
271.98M	217.92M	199.30M	179.38M	163.08M
	Gross Profit
271.98M	217.92M	199.30M	179.38M	163.08M
	EBIT
270.01M	116.55M	104.58M	88.32M	77.95M
	EBITDA
0.00	119.04M	102.17M	90.95M	80.72M
	Net Income Common Stockholders
88.46M	88.31M	75.09M	66.34M	58.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
535.47M	254.78M	757.55M	1.00B	1.20B
	Total Assets
5.37B	5.31B	5.33B	5.18B	4.55B
	Total Debt
10.31M	10.31M	10.31M	10.31M	10.31M
	Net Debt
-71.06M	-400.33M	-577.95M	-705.15M	-373.53M
	Total Liabilities
4.80B	4.76B	4.84B	10.31M	4.13B
	Stockholders Equity
573.07M	549.75M	485.31M	463.14M	423.67M
Cash Flow		Free Cash Flow
103.73M	88.38M	97.59M	57.89M	50.41M
	Operating Cash Flow
103.73M	93.35M	101.78M	59.96M	58.12M
	Investing Cash Flow
-274.58M	-146.55M	-315.30M	-296.15M	-736.75M
	Financing Cash Flow
-27.23M	-124.42M	86.32M	567.81M	767.71M

Farmers & Merchants Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 996.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMCB, the sentiment is Negative. The current price of 996.25 is below the 20-day moving average (MA) of 1009.62, below the 50-day MA of 1021.52, and above the 200-day MA of 991.70, indicating a neutral trend. The MACD of -8.40 indicates Positive momentum. The RSI at 42.47 is Neutral, neither overbought nor oversold. The STOCH value of 45.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FMCB.

Farmers & Merchants Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRBA	77 Outperform	$370.73M	8.83	10.83%	1.63%	31.85%	69.42%
FMCB	76 Outperform	$699.89M	8.26	15.76%	1.81%	8.92%	3.79%
SMBK	75 Outperform	$528.92M	14.51	7.60%	1.03%	18.62%	26.65%
PEBO	75 Outperform	$1.06B	8.97	10.77%	5.39%	17.88%	-3.25%
CIVB	71 Outperform	$302.47M	9.70	8.10%	3.33%	11.16%	-26.17%
FMBH	65 Neutral	$836.98M	10.57	9.62%	2.73%	17.70%	3.88%
Sector *	63 Neutral	$14.35B	9.94	8.94%	4.37%	16.34%	-11.76%

Farmers & Merchants Bancorp Corporate Events

Farmers & Merchants Bancorp Strengthens Board with New Appointment

On January 15, 2025, Deborah Skinner, who retired as Executive Vice President and Chief Administrative Officer of Farmers & Merchants Bancorp on December 31, 2024, was appointed to the company’s Board of Directors. Skinner’s appointment fills the vacancy left by Calvin Suess’s resignation and brings her extensive experience in banking and leadership to the board, although she is not considered ‘independent’ under Nasdaq’s rules. Her addition is expected to enhance the company’s governance and strategic alignment with its commitment to serving shareholders, customers, employees, communities, and government entities.

Farmers & Merchants Bancorp Updates Restricted Stock Plan

On January 14, 2025, Farmers & Merchants Bancorp’s Board of Directors approved a form of Restricted Stock Award Agreement as part of the 2025 Restricted Stock Retirement Plan. This plan aims to provide restricted stock awards to the company’s employees, officers, and non-employee directors, potentially impacting employee compensation and company operations.

Farmers & Merchants Bancorp Leadership Transition Announcement

Farmers & Merchants Bancorp announced the resignation of Calvin “Kelly” Suess, the longest-serving board member, effective at the next board meeting in January 2025. The company is in the process of appointing a new board member, with a nomination expected by January’s end, followed by a shareholder vote. Suess’ departure marks a significant leadership change, as he was instrumental in strengthening the bank’s community reinvestment culture and contributed to its growth and success over 35 years. The transition is part of normal succession planning, signaling a continued commitment to strategic oversight and board renewal.