FMAO
FARMERS & MERCHANTS BANCORP INC
Next earnings Jul 16, 2026 · consensus $0.69 EPS, $28.6M rev
Last earnings -0.3% on 2026-04-22
$30.67
▲ +0.36%$30.67▲ +25.44%
over 1Y
L $22.61H $30.67
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+0.4%
1W+2.5%
1M+9.3%
3M+18.5%
YTD+27.2%
1Y+25.4%
Hold
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 8 analysts
Sell
Cheap, well-capitalized ag/commercial bank riding a NIM surge, but a 9% ROE and lumpy earnings keep it a hold, not a chase.
Diluted EPS (FY2025) $2.43 · FY2025
The read
Middling fundamentals offset by an attractive price (~201% below fair value) — worth a look on the value angle.
FMAO delivered a record 2025: net income $33.3M (+28.4%) and diluted EPS $2.43 (+27.9%), driven almost entirely by a 56bp net-interest-margin expansion (2.72%→3.28%) as asset yields rose to 5.45% while the cost of interest-bearing liabilities fell 32bp to 2.80%. Management's stated 2025 playbook — controlling loan growth, shedding high-cost deposits, and funding sub-6% loan growth with core deposits — clearly worked, adding $18.4M of net interest income versus just $4.5M the prior year. The balance sheet is sound: equity grew 10.6% to $371M, retained earnings +9.3%, and at $30.67 the stock trades at ~12.6x earnings and roughly 1.1x book — undemanding for a profitable, dividend-paying franchise.
The reason this is a hold rather than a buy is quality and durability. ROE is only 9.0%, below what a good community bank earns, and the earnings record is genuinely lumpy: net income ran $23.5M → $32.5M → $22.8M → $25.9M → $33.3M over 2021-2025, so 2025's jump is a rate-cycle spike, not a proven trend. The NIM gains were harvested in a declining-rate environment; further deposit-cost tailwinds are finite, and management itself flags continued dependence on core-deposit gathering. A ~1.1x book multiple on a 9% ROE is close to fair value — you're paid modestly, not richly, for the risk.
Is FMAO a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~60d expiry
- Long 100 shares @ ~30.67
- Short call 32 @ ~0.65 est
debit $3,002max +$198max −$3,001BE 30.02
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | — | — | — | — | — |
| Gross profit | — | — | — | — | — |
| Operating income | — | — | — | — | — |
| Net income | $23.5M | $32.5M | $22.8M | $25.9M | $33.3M |
| Diluted EPS | $2.01 | $2.46 | $1.67 | $1.90 | $2.43 |
| Net margin | — | — | — | — | — |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value—
EV / EBITDA—
EV / Sales—
EV / FCF—
P / FCF12.1
PEG (trailing)0.44
Earnings yield7.9%
FCF yield8.3%
Quality & risk
ROIC (est.)—
Free cash flow$35.0M
Total debt—
Net cash$24.3M
Capital returns
Buyback yield0.1%
Dividend yield (est.)2.9%
Shareholder yield2.9%
Shares Δ YoY+0.3%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRecent disclosure tone has been improving.
- 10-Q Quarterly report2026-04-29
Q1 2026 (period 3/31): extends FY2025 margin gains and controlled loan growth
- 8-K Earnings results2026-04-22
Q1 2026 earnings release; carries FY2025 momentum of NIM expansion, EPS growth
- 8-K Shareholder vote2026-04-21
Annual meeting vote results; directors elected, routine governance items passed
- DEF 14A Proxy statement2026-03-24
2026 proxy: director slate, exec comp, 2025 Long-Term Stock Incentive Plan
- 10-K Annual report2026-02-27
FY2025 10-K: EPS +28%, NIM 2.72%→3.28%, equity +10.6%, provisions up on growth
- 8-K Earnings results2026-02-12
FY2025 results: net income $33.3M (+28%), EPS $2.43, NIM up 56bp to 3.28%
- 8-K Other event2026-01-27
Other-events disclosure (Item 8.01), likely dividend/routine update; no financials
- 10-Q Quarterly report2025-10-31
Q3 2025: improving net interest margin and core-deposit funding trend
- 8-K Earnings results2025-10-27
Q3 2025 earnings release amid full-year NIM expansion and loan growth
Recent filings
all on EDGAR ↗4Period ending 2026-06-292026-07-01open ↗144Filing2026-06-29open ↗4Period ending 2026-06-252026-06-26open ↗4Period ending 2026-06-222026-06-24open ↗144Filing2026-06-22open ↗4Period ending 2026-06-182026-06-18open ↗4Period ending 2026-06-152026-06-17open ↗4Period ending 2026-06-112026-06-15open ↗144Filing2026-06-15open ↗4Period ending 2026-06-112026-06-12open ↗4Period ending 2026-06-082026-06-10open ↗144Filing2026-06-08open ↗
Frequently asked
- Is FARMERS & MERCHANTS BANCORP INC (FMAO) a buy?
- FMAO currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Cheap, well-capitalized ag/commercial bank riding a NIM surge, but a 9% ROE and lumpy earnings keep it a hold, not a chase.
- What is FMAO's fair value?
- A Modified-Graham model based on FMAO's SEC fundamentals estimates a fair value of about $92.34. It is an estimate from reported earnings, not a price target.
- Is FMAO overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, FMAO currently appears undervalued relative to its SEC-grounded earnings power.
- What is FARMERS & MERCHANTS BANCORP INC's quality score?
- FMAO scores 79.8780452839626/100 (grade B+) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0000792966, latest 10-Q filed 2026-04-29) · EODHD · Proprietary analysis · as of 7/3/2026, 5:15:13 AM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jul 3, 2026, 1:15 AM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.