Farmers & Merchants Bancorp, Inc.
$27.14
-3.2%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 8.0).
Valuation inputs: P/E 8.0, earnings yield +12.5%, momentum -3.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +9.0%, ROIC +5.2%).
Profitability stack: net margin +17.6%, ROE +9.0%, ROIC +5.2%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +89.2%, momentum -3.2%, net margin +17.6%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Farmers & Merchants Bancorp, Inc. Market vs Earnings Trajectory
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Farmers & Merchants Bancorp, Inc. Fair Value Envelope
Farmers & Merchants Bancorp, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
Farmers & Merchants Bancorp, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Farmers & Merchants Bancorp, Inc. Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Farmers & Merchants Bancorp, Inc. Street Expectations Map
Wall Street analysts project that FMAO stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 28.50, with estimates ranging from a low of 28.50 to a high of 28.50.
The consensus 1-year price target stands at 28.50, with estimates ranging from a low of 28.50 to a high of 28.50.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Farmers & Merchants Bancorp, Inc. Insider Positioning
During the last 12 months, insiders have purchased $257K and sold $1.16M worth of FMAO shares, resulting in $899K of net selling activity.
3 Months
0
0.00
40.1K
1.09M
-1.1M
-$1.09M
3-6 Months
0
0.00
275
7.13K
-7K
-$7K
6-9 Months
2.9K
67.99K
0
0.00
+68K
+$68K
9-12 Months
8.2K
189.09K
2.2K
59.22K
+130K
+$130K
Top Buyers
Planson Steven J
Director
$72K
Boyce Ian D
Director
$31K
Briggs Andrew J
Director, Officer: Chairman
$17K
Latta Marcia Sloan
Director
$17K
Vernon David P
Director
$17K
Top Sellers
Briggs Andrew J
Director, Officer: Director
$1.06M
Eller Lars B
Director, Officer: President & Ceo
$47K
Faust Eric D
Officer: Chief Risk Officer
$36K
Gerken David R
Officer: Executive Vice President
$12K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $899K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider buyers vs. 4 sellers. More insiders buying than selling indicates positive sentiment.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
fmao Dividend History
Learning Layer
Related Guides
Build conviction on FMAO by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.