Farmers & Merchants Bancorp, Inc.
Farmers & Merchants Bancorp, Inc. Fundamental Analysis
Farmers & Merchants Bancorp, Inc. (FMAO) shows moderate financial fundamentals with a PE ratio of 10.68, profit margin of 17.72%, and ROE of 9.33%. The company generates $0.2B in annual revenue with strong year-over-year growth of 16.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FMAO's fundamental strength across five key dimensions:
Efficiency Score
WeakFMAO struggles to generate sufficient returns from assets.
Valuation Score
ModerateFMAO shows balanced valuation metrics.
Growth Score
ExcellentFMAO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFMAO maintains a strong and stable balance sheet.
Profitability Score
ModerateFMAO maintains healthy but balanced margins.
Key Financial Metrics
Is FMAO Expensive or Cheap?
P/E Ratio
FMAO trades at 10.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FMAO's PEG of 2.48 indicates potential overvaluation.
Price to Book
The market values Farmers & Merchants Bancorp, Inc. at 0.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.20 times EBITDA. This is generally considered low.
How Well Does FMAO Make Money?
Net Profit Margin
For every $100 in sales, Farmers & Merchants Bancorp, Inc. keeps $17.72 as profit after all expenses.
Operating Margin
Core operations generate 22.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.33 in profit for every $100 of shareholder equity.
ROA
Farmers & Merchants Bancorp, Inc. generates $0.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Farmers & Merchants Bancorp, Inc. produces operating cash flow of $37.37M, showing steady but balanced cash generation.
Free Cash Flow
Farmers & Merchants Bancorp, Inc. generates strong free cash flow of $35.60M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.59 in free cash annually.
FCF Yield
FMAO converts 10.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
13.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How FMAO Stacks Against Its Sector Peers
| Metric | FMAO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.68 | 18.66 | Better (Cheaper) |
| ROE | 9.33% | 806.00% | Weak |
| Net Margin | 17.72% | -451.00% (disorted) | Strong |
| Debt/Equity | 0.81 | 1.00 | Neutral |
| Current Ratio | 13.43 | 662.02 | Strong Liquidity |
| ROA | 0.97% | -24409.00% (disorted) | Weak |
FMAO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Farmers & Merchants Bancorp, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.74%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
13.65%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
9.41%
Industry Style: Value, Dividend, Cyclical
Growing