Farmers & Merchants Bancorp
🇺🇸 FMCB · NYSE/NASDAQ · US3077951040
Bank
USD 1345.00 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
10.0
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: 1345.00 ÷ 134.12 = 10.0
TTM period through: 2025-12-31
Forward P/E (estimated): 11.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 9.6
Yield (Fwd)
1.52%
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): 1.87%
Div. Growth (5Y CAGR)
6.0%
Growth Streak
6 yrs
Consecutive years of increase
Payout (Fwd)
15.3%
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
15.0%
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 community bank boasting a pristine balance sheet, robust profitability, and a 61-year history of consecutive dividend increases. While the business fundamentals are outstanding and the P/E of 10 is attractive, the highly conservative payout ratio results in a sub-2% yield. Existing shareholders should confidently maintain positions given the stellar financials, while new investors seeking strictly high current income may want to wait until the yield better aligns with their requirements.
Sector Context
Farmers & Merchants Bancorp operates as a community bank providing commercial and retail banking services, generating revenue primarily through interest on loans and deposits. For dividend investors, the banking sector can offer stable income, but success heavily depends on asset quality, conservative lending practices, and strong capital buffers, which FMCB perfectly exemplifies.
📊 Strategy Analysis
- • Exceptional financial stability highlighted by a negligible Debt/Equity ratio of 0.02 and a strong Return on Equity of 15.05%.
- • Attractive valuation with a trailing P/E of 10.03, falling squarely within the target 8-15x sweet spot.
- • Remarkable track record of shareholder returns, having recently increased its dividend for the 61st consecutive year.
- • Outstanding dividend safety with a conservative FCF Payout Ratio of 13.28% and earnings growth of 9.8% over the last 5 years.
⚠ What to Watch
- • The trailing dividend yield of 1.87% (and forward yield of 1.52%) falls significantly below the strategy's 3% minimum requirement for income generation.
- • Management's highly conservative capital allocation policy keeps the payout ratio structurally low, prioritizing internal capital retention over higher immediate cash distributions.
📊 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: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.