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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2433
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Banking
$340M
Lars B. Eller
Farmers & Merchants Bancorp, Inc. 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.
Headcount
430
HQ Base
Pending Verification
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = FMAO ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$FMAO FARMERS & MERCHANTS BANCORP INC | 47 | 32 | 58 | 49 | 12.7x | 9.7x | 8.3% | 0.9% | 0.0% | 22.0% | 19.6% | 8.1% | 3.6% | 837.0x | $340M | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
FARMERS & MERCHANTS BANCORP INC (FMAO) receives a "Reduce" rating with a composite score of 47.3/100. It ranks #2433 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for FMAO.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 32 | 50 | -18DRAG |
| MOMENTUM | 49 | 50 | -1NEUTRAL |
| VALUATION | 58 | 80 | -22DRAG |
| INVESTMENT | 26 | 25 | +1NEUTRAL |
| STABILITY | 38 | 31 | +7ALPHA |
| SHORT INT | 59 | 74 | -15DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 6.9% vs WACC 8.1% (spread -1.3%)
GM 0% vs sector 78%, OM 22% vs sector 18%
Capital turnover 0.34x
Rev growth 8%, 10yr history
Interest coverage 0.6x, Net debt/EBITDA 11.5x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate FARMERS & MERCHANTS BANCORP INC (FMAO) as a Reduce with a composite score of 47.3/100 at a current price of $26.21. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
FARMERS & MERCHANTS BANCORP INC holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 47.3/100 places it at rank #2433 in our full universe.
No Moat
High
Poor
Fair Value
Stable competitive position in a defensive sector.
Leverage of 837% D/E amplifies downside risk.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
FARMERS & MERCHANTS BANCORP INC represents a reduce based on multi-factor quantitative performance.
FARMERS & MERCHANTS BANCORP INC receives a Reduce rating from our analysis, with a composite score of 47.3/100 and 2 out of 5 stars, ranking #2433 out of 7,333 stocks. FMAO's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
FMAO's quality score of 32/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 8.3% (sector avg: 9.0%), gross margins of 0.0% (sector avg: 77.7%), net margins of 19.6% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
FMAO's value score of 58/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 12.74x, an EV/EBITDA of 9.68x, a P/B ratio of 1.06x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
FARMERS & MERCHANTS BANCORP INC's investment score of 26/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 8.1% vs. a sector average of 10.7% and a return on assets of 0.9% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
FMAO is currently showing below-average momentum at 49/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 8.1% year-over-year, while a beta of 0.75 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
FMAO's stability score of 38/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 0.75 and a debt-to-equity ratio of 837.00x (sector avg: 0.5x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 59/100 for FMAO suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 837.00x), small-cap liquidity risk. With a $340M market cap (small-cap), FARMERS & MERCHANTS BANCORP INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
FMAO pays a solid dividend yield of 3.6%, contributing an income component to total returns. This compares to a sector average dividend yield of 2.0%. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
FARMERS & MERCHANTS BANCORP INC is a small-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2433 of 7,333 overall (67th percentile). Key comparisons include ROE of 8.3% trailing the 9.0% sector median and operating margins of 22.0% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While FMAO currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
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Improvement in Investment (26) would have the largest impact on the composite score.
EV/EBITDA 25% ABOVE SECTOR MEDIAN
ROE 8% BELOW SECTOR MEDIAN
Gross Margin 100% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
ARCHBOLD, Ohio, Feb. 12, 2026 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2025 fourth quarter and twelve months ended December 31, 2025, on a consolidated basis. 2025 Fourth-Quarter Financial and Operating Highlights(at December 31, 2025, and on a year-over-year basis unless noted) 91 consecutive quarters of profitabilityNet income increased 16.8% to a quarterly record of $9.8 million, or $0.71 per basic and diluted shareNet charg
Farmers & Merchants Bancorp (FMAO) has wrapped up FY 2025 with fourth quarter revenue of US$31.9 million and EPS of US$0.71, capping off a trailing twelve month run of US$119.4 million in revenue and EPS of US$2.39 alongside 29.8% earnings growth over the past year. Over recent periods the company has seen revenue move from US$26.6 million and EPS of US$0.59 in Q4 2024 to US$31.9 million and EPS of US$0.71 in Q4 2025, while trailing net income has reached US$33.0 million. With net profit...
COLUMBIA, Tenn., January 26, 2026--First Farmers and Merchants Corporation (OTCID: FFMH), the holding company for First Farmers and Merchants Bank, today announced record financial results for the 2025 fiscal year, delivering strong performance marked by double-digit annual growth in net income and the eighth consecutive quarter of net interest margin expansion.

Farmers & Merchants Bancorp announced a quarterly cash dividend of $0.23 per share, representing a 4% year-over-year increase. The dividend will be payable on January 20, 2026, to shareholders of record as of December 29, 2025.

Farmers & Merchants Bancorp, Inc. (FMAO) has declared a quarterly cash dividend of $0.22125 per share, payable on July 20, 2025, to shareholders of record as of July 7, 2025. The company has a long-standing commitment to returning capital to shareholders, having increased its annual dividend for 30 consecutive years.