First Farmers and Merchants (FFMH) AI Stock Analysis

• Market Cap: $179.69M
• Dividend Yield: 2.52%
• Average Volume (3M): 1.60K
• Price to Earnings (P/E): 9.9
• Beta (1Y): >-0.01
• Revenue Growth: 2.27%
• EPS Growth: 29.87%
• Country: US
• Employees: 467
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.15
• Shares Outstanding: 4,094,102
• 10 Day Avg. Volume: 2,522
• 30 Day Avg. Volume: 1,600
• PEG Ratio: 3.83
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 4.72
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 2.22
• Enterprise Value/Ebitda: 6.11
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $49.00 ▲(12.13% Upside)

First Farmers and Merchants' strong financial performance and attractive valuation are the primary drivers of its stock score. The company's low leverage and solid equity position enhance its financial stability. However, technical indicators suggest potential short-term bearish trends, which slightly offset the positive financial and valuation aspects.

First Farmers and Merchants Business Overview & Revenue Model

Company Description

First Farmers and Merchants (FFMH) is a community-focused financial institution headquartered in Tennessee, offering a range of banking services to individuals, families, and businesses. Established with a commitment to supporting local communities, FFMH provides traditional banking products such as savings and checking accounts, loans, mortgages, and investment services. The bank also engages in agricultural lending, reflecting its roots in farming and rural development, and serves a diverse clientele across various sectors, including small businesses and agricultural enterprises.

How the Company Makes Money

FFMH generates revenue primarily through its interest income from loans and mortgages, which constitutes the largest portion of its earnings. The bank issues various types of loans, including personal loans, commercial loans, and agricultural loans, charging interest on these products. Additionally, FFMH earns fees from account services, transaction fees, and investment services provided to clients. Another significant revenue stream comes from the bank's investment portfolio, where it invests in securities to earn interest and dividends. The bank may also engage in partnerships with local businesses and organizations to enhance its service offerings, further contributing to its overall profitability.

First Farmers and Merchants Financial Statement Overview

Summary

First Farmers and Merchants exhibits a strong financial position characterized by stable revenue, commendable profit margins, and solid equity. The company maintains low leverage, enhancing its financial stability. While cash flows are robust, further growth in revenue would bolster overall financial strength.

Income Statement

First Farmers and Merchants has demonstrated stable revenue generation with a slight growth from $57.55 million to $59.05 million in 2024. The net profit margin remained consistently strong, indicating efficient cost management. However, revenue growth is modest, and the lack of EBITDA data limits a full profitability analysis.

Balance Sheet

The company's balance sheet is strong with a robust equity position and zero current total debt, reflected in a debt-to-equity ratio of zero. Return on Equity (ROE) has been impressive due to solid net income performance. The equity ratio is healthy, indicating financial stability and low leverage risk.

Cash Flow

First Farmers and Merchants' cash flow is positive with significant growth in operating cash flow and free cash flow in recent years. The operating cash flow to net income ratio is favorable, suggesting strong cash generation relative to profits. However, the absence of previous free cash flow data limits trend analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.57M	59.05M	73.94M	65.34M	64.32M	61.77M
Gross Profit	63.22M	59.05M	57.71M	62.13M	61.94M	57.98M
EBITDA	22.93M	21.10M	21.14M	24.07M	21.16M	19.07M
Net Income	17.91M	16.04M	16.05M	18.05M	15.62M	14.19M
Balance Sheet
Total Assets	1.75B	1.77B	1.87B	1.94B	1.97B	1.80B
Cash, Cash Equivalents and Short-Term Investments	51.22M	46.61M	25.46M	29.00M	103.23M	138.37M
Total Debt	0.00	2.52M	104.00M	25.00M	3.87M	16.02M
Total Liabilities	1.59B	1.63B	1.75B	1.85B	1.81B	1.64B
Stockholders Equity	155.99M	137.58M	124.15M	96.57M	158.54M	159.90M
Cash Flow
Free Cash Flow	0.00	30.77M	17.11M	15.31M	21.18M	12.90M
Operating Cash Flow	0.00	31.29M	17.73M	16.42M	22.63M	16.63M
Investing Cash Flow	0.00	117.61M	86.72M	-116.40M	-223.79M	-287.87M
Financing Cash Flow	0.00	-127.74M	-107.99M	27.33M	166.02M	377.78M

First Farmers and Merchants Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 43.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFMH, the sentiment is Neutral. The current price of 43.7 is below the 20-day moving average (MA) of 44.04, below the 50-day MA of 44.10, and above the 200-day MA of 40.02, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 64.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FFMH.

First Farmers and Merchants Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBNA	78 Outperform	$203.65M	9.57	17.07%	―	―	―
FFMH	74 Outperform	$179.69M	9.94	12.72%	2.52%	2.27%	29.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EFSI	67 Neutral	$197.37M	16.85	5.44%	3.38%	-1.51%	-26.72%
FSFG	66 Neutral	$214.62M	9.56	12.26%	2.05%	7.93%	134.03%
NKSH	63 Neutral	$183.91M	16.24	7.10%	5.15%	15.17%	14.41%
FRAF	62 Neutral	$198.54M	13.41	9.88%	2.92%	15.18%	5.13%