Farmers & Merchants Bancorp Inc. Common Stock (FMAO)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $34.98 on 2026-10-13, FMAO carries a FairStock P/E of 12.02 and a FairStock P/B of 1.24. For a small regional bank with a FairStock ROE of 10.88%, that is not a demanding valuation, but it is not a giveaway either. Book value is the anchor for a bank, and paying roughly 1.24 times book for a low-double-digit return on equity is fair, assuming credit costs stay normal. The filed numbers show a steady upward trend: net income rose from $22.8M in FY2023 to $25.9M in FY2024 to $33.3M in FY2025, with diluted EPS moving from $1.67 to $1.90 to $2.43. More recently, Q1 2026 net income was $9.6M and Q2 2026 was $11.8M, or $0.86 per diluted share, so the momentum has continued. FairStock labels it a STALWART, with profit growth of about 10.6% a year over five years, and the FairStock PEG of 0.23 suggests the market is not paying much for that growth. The dividend yield is 2.75%, and a beta of 0.81 implies less volatility than the broad market. The moat, if any, comes from local relationships and agricultural/commercial lending in Northwest Ohio, Northeast Indiana, and Southeast Michigan. But this is a 477-employee bank; scale is limited and credit risk is the real question. The FairStock Piotroski F-score of 5/9 is middling. CET1 and net interest margin are not provided, so I cannot judge capital adequacy or funding spread; combined ratio is an insurer measure and not applicable. I would want more evidence on loan quality and reserves before calling it robust.

In plain English: Farmers & Merchants Bancorp is a small bank holding company that serves individuals and small businesses in parts of Ohio, Indiana, and Michigan. Its profits have been growing, and it pays a modest dividend, while its stock price looks neither clearly cheap nor expensive compared with its earnings and accounting value. The bank's returns are decent but not outstanding, and its safety depends on credit conditions not shown in the data.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer