Farmers & Merchants Bancorp, Inc. (FMAO) stock analysis

In our weekly check, Farmers & Merchants Bancorp, Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5.

About Farmers & Merchants Bancorp, Inc.

Farmers & Merchants Bancorp, Inc. is a Financial Services company (Banks - Regional) based in the United States, listed on NASDAQ as FMAO.

What our checks show for FMAO

Red flags

• The gross margin fell by 22.5 points, to 65.8%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 10.3% a year.
• The stock has fallen as much as 65% from a peak. Would you have held through that?
• Thinly traded (about 59 thousand shares a day): buying and selling can move the price.

Warning signs

• The net margin fell by 4 points over 5 years, to 21.5%: the company keeps less of each sale as profit.
• A small company (market value $501 million): usually riskier and followed by fewer analysts.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 8.8%.

Strengths

• Analysts expect the net margin to improve by 9.9 points from today's 21.5%.
• Revenue grew 20.5% a year over the last 3 years.
• The company keeps 21.5% of its revenue as net profit.
• Free cash flow is 17.4% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 37% of profit: there is a cushion.
• The price is 11.7 times earnings (P/E), reasonable for its growth.

Similar companies

PBAM · OBT · FRBA · HBCP · CWBC

Questions

What grade does Farmers & Merchants Bancorp, Inc. (FMAO) have?

In our weekly check, Farmers & Merchants Bancorp, Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of FMAO stock?

This week's biggest flags for Farmers & Merchants Bancorp, Inc.: Gross margin falling, Weak revenue forecast, Deep past fall. In total 9 of 25 checks show a warning or a red flag.

What does Farmers & Merchants Bancorp, Inc. do?

Farmers & Merchants Bancorp, Inc. is a Financial Services company (Banks - Regional) based in the United States, listed on NASDAQ as FMAO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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