FMAO

Farmers & Merchants Bancorp, Inc.

Fundamental data last updated:August 13, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Farmers & Merchants Bancorp, Inc. operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking services to individuals and small businesses in northwest Ohio and northeast Indiana. The company offers checking, savings, and time deposit accounts; certificates of deposit; and custodial services for individual retirement and health savings accounts. It also provides commercial, agricultural, and residential mortgage, as well as consumer and credit card lending products; loans for farmland, farm equipment, and livestock; operating loans for seeds, fertilizers, and feeds; home improvement loans; and loans for autos, trucks, recreational vehicles, and motorcycles. In addition, the company offers commercial real estate loans, such as lines of credit and machinery purchase loans. Further, it provides automated teller machine or interactive teller machine services; and online and mobile banking, remote deposit capture or electronic deposit processing, and merchant credit card services. It also offers electronic transaction origination, such as wire and automated clearing house file transmittal services. Farmers & Merchants Bancorp, Inc. was founded in 1897 and is headquartered in Archbold, Ohio.

 


Analyze FMAO on TradingView

VALUATION

P/E

10.69

Market Cap ($M USD)

$384.68M

Forward P/E

9.27

PEG

0.61

PRICE TO SALES

2.01

PRICE TO BOOK

1.02

EV / EBITDA

9.62

5-Year Average P/E

Free Cash Flow Yield

8.31%

DCF Value

$13.54

Graham Number

$40.10

Price to FCF

12.04

EV to FCF

15.00

Earnings Yield

9.35%

FCF Yield

8.31%

DIVIDEND

Yield

3.25%

Annual Payout

$0.91

Payout Ratio

33.99%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.61

Next Year EPS Growth Estimate

$3.01

Next Year Revenue Growth Estimate

$142.80M

Return on Equity (ROE)

9.85%

FREE CASH FLOW

Operating Margin

24.10%

Debt-to-Equity

0.81

Piotroski F-Score

6

Altman Z-Score

-0.57

Return on Invested Capital (ROIC)

7.01%

Current Ratio

0.13

Quick Ratio

0.13

Net Debt to EBITDA

1.90

Interest Coverage

0.68

Gross Profit margin

63.48%

FCF PER SHARE

$2.32

REVENUE PER SHARE

$13.91

Analyze FMAO on TradingView

Gainseekers Quantitative Analysis

Summary

FMAO Farmers & Merchants Bancorp, Inc. appears to be a classic case of market mispricing. Based on the data at the time of this analysis, the stock traded significantly above its DCF value, suggesting an overvaluation. The Forward P/E of 9.24 and an Earnings Yield of 9.38% indicate potential undervaluation relative to earnings, yet the negative Altman Z-score raises red flags about financial distress. Despite these concerns, the PEG ratio below 1.0 suggests growth at a reasonable price, but the market seems to be ignoring the underlying risks.

AI Exposure / Tech Reliance

Operating within the regional banking sector, FMAO's adaptability to AI and tech shifts is inherently limited. The industry is traditionally slow to adopt cutting-edge technology, focusing more on regulatory compliance and customer trust. However, any advancements in fintech could provide opportunities for enhanced operational efficiency.

The Bull Case

For the value or GARP investor, FMAO offers compelling reasons to buy. The ROIC of 7.01% and a solid FCF Yield of 8.34% highlight efficient capital use and cash generation. A Piotroski F-Score of 6 indicates moderate financial health, while an Operating Margin of 24.10% underscores strong pricing power. These metrics suggest a company capable of delivering consistent returns, making it attractive for those seeking value.

The Bear Case

Despite some strengths, FMAO faces significant structural risks. The Altman Z-score of -0.57 signals potential financial distress, and the Current Ratio of 0.13 points to liquidity issues. The stock's proximity to its 52-week high suggests technical overextension, while the Price/Book ratio of 1.02 indicates limited margin of safety. These factors collectively raise concerns about its long-term stability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$28.50

Institutional Ownership %

1-Year Beta

0.83

Insider Buying % (6 Mo)

Distance to 52-Week High

6.76%

Distance to 52-Week Low

19.15%

EARNINGS SURPRISE %

2.94%

50-DAY SMA

$26.62

200-DAY SMA

$25.86

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.