Farmers & Merchants Bancorp
🇺🇸 FMCB · NYSE/NASDAQ · US3077951040
Bank
USD 1150.00 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
8.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 1150.00 ÷ 134.12 = 8.6
TTM period through: 2025-12-31
Reference: Provider P/E (Trailing): 8.6
Yield (Fwd)
2.13%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 1.71%
Payout (Fwd)
18.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 14.8%
Cash Flow Payout (TTM): 13.3%
FCF Coverage (TTM): 6.98x
ROE
15.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
Summary
Farmers & Merchants Bancorp is an exceptionally well-capitalized commercial bank with a pristine balance sheet, record net income, and a 91-year history of uninterrupted dividends. While the business boasts outstanding fundamentals and an attractive P/E of 8.57, the 1.71% dividend yield falls short of our strategy's income requirements. Existing shareholders should maintain positions given the flawless dividend coverage, but income-focused investors should monitor for a higher starting yield.
Sector Context
Farmers & Merchants Bancorp operates as a community and commercial bank, generating revenue primarily through traditional lending and deposit-taking activities. In the banking sector, high debt-to-equity is usually normal due to customer deposits, but FMCB is an outlier with exceptionally low leverage, making it highly secure for conservative investors.
📊 Strategy Analysis
- • Exceptional balance sheet strength with a Debt/Equity ratio of just 0.02, providing massive insulation against macroeconomic shocks and rising interest rates.
- • Outstanding profitability metrics, highlighted by a 15.36% ROE and operating margins exceeding 58%.
- • Pristine dividend sustainability with a highly conservative 20.26% trailing payout ratio (13.28% cash flow payout) and a 91-year history of consecutive payouts.
⚠ What to Watch
- • The trailing dividend yield of 1.71% (2.13% forward) falls significantly short of the 3% minimum threshold required for this income-focused strategy.
- • Management's highly conservative payout policy prioritizes internal capital retention and stock buybacks over immediate cash returns to shareholders.
- • Macroeconomic headwinds, including persistent inflation and Middle East geopolitical tensions, could indirectly pressure regional loan growth.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.