First Farmers and Merchants (FFMH) AI Stock Analysis

• Rating: 74 Outperform
• Price Target: ―

First Farmers and Merchants demonstrates strong financial stability with commendable profit margins and a robust equity position. The stock's technical indicators are positive, supporting upward price trends. Valuation metrics indicate reasonable pricing with a decent dividend yield. Despite the lack of recent earnings call data and corporate events, the company's solid fundamentals and technical strength provide an overall positive outlook.

First Farmers and Merchants Business Overview & Revenue Model

Company Description

First Farmers and Merchants Corporation (FFMH) is a financial services company primarily operating in the banking sector. It provides a range of banking and financial services to individuals, businesses, and agricultural clients. Its core products and services include personal and commercial banking, mortgage lending, and investment services. The company is committed to fostering local economic growth and supporting community development through its comprehensive financial solutions.

How the Company Makes Money

First Farmers and Merchants Corporation generates revenue through various banking and financial services. The primary revenue streams include interest income from loans and mortgages, fees from banking services such as account maintenance, transaction fees, and investment advisory services. The company also earns from interest on investments and partnerships with other financial institutions. Additionally, FFMH benefits from agricultural lending, which is tailored to meet the financial needs of the farming community, thus providing a significant portion of its income. By maintaining a focus on local markets and personalized service, FFMH continues to enhance its profitability.

First Farmers and Merchants Financial Statement Overview

Summary

First Farmers and Merchants demonstrates strong profitability metrics with robust cash flow generation and a solid capital structure. However, challenges in revenue growth and potential volatility in cash management strategies temper the overall financial performance.

Income Statement

The company shows a strong financial performance with a stable gross profit margin, despite a slight decline in revenue. The net profit margin remains healthy, reflecting efficient cost management. The EBIT margin is consistent, indicating operational stability. However, the revenue growth rate has been negative, suggesting challenges in expanding the top line.

Balance Sheet

The balance sheet reveals a solid equity base with a moderate debt-to-equity ratio, which suggests a balanced approach to leverage. Return on equity has shown resilience, indicating effective use of equity capital. The equity ratio is stable, reflecting a strong capital structure, though the growth in liabilities is a point to monitor.

Cash Flow

The cash flow statement highlights positive free cash flow growth, supported by strong operating cash flow generation. The operating cash flow to net income ratio is favorable, showcasing healthy cash conversion from profits. Nevertheless, fluctuations in investing and financing cash flows indicate potential volatility in cash management strategies.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
79.17M	57.55M	65.34M	64.32M	61.77M	61.70M
	Gross Profit
72.94M	73.94M	65.34M	64.32M	61.77M	61.70M
	EBIT
13.11M	23.37M	22.96M	18.26M	16.54M	19.35M
	EBITDA
0.00	21.14M	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
14.21M	16.05M	18.05M	15.62M	14.19M	16.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
51.84M	25.46M	29.00M	103.23M	138.37M	34.15M
	Total Assets
1.11B	1.87B	1.94B	1.97B	1.80B	1.40B
	Total Debt
0.00	104.00M	28.37M	3.87M	16.02M	22.03M
	Net Debt
-51.84M	78.66M	-576.00K	-90.99M	-118.57M	-12.12M
	Total Liabilities
0.00	1.75B	1.85B	1.81B	1.64B	1.26B
	Stockholders Equity
114.34M	124.15M	96.57M	158.54M	159.90M	144.29M
Cash Flow		Free Cash Flow
7.00M	17.11M	15.31M	21.18M	12.90M	10.07M
	Operating Cash Flow
7.00M	17.73M	16.42M	22.63M	16.63M	11.87M
	Investing Cash Flow
0.00	86.72M	-117.98M	-223.79M	-290.19M	-31.62M
	Financing Cash Flow
0.00	-107.99M	27.33M	166.02M	377.78M	13.37M

First Farmers and Merchants Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFMH, the sentiment is Positive. The current price of 40.5 is above the 20-day moving average (MA) of 39.13, above the 50-day MA of 38.40, and above the 200-day MA of 35.57, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 75.66 is Negative, neither overbought nor oversold. The STOCH value of 87.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FFMH.

First Farmers and Merchants Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LARK	77 Outperform	$172.55M	11.57	11.08%	2.71%	15.90%	27.67%
FFMH	74 Outperform	$165.81M	9.68	12.54%	2.59%	5.56%	14.00%
UBFO	68 Neutral	$156.93M	11.62	10.35%	5.34%	0.16%	-25.67%
ATLO	67 Neutral	$159.14M	14.08	6.52%	5.27%	8.65%	15.26%
FRAF	66 Neutral	$173.87M	14.94	8.16%	3.28%	18.74%	―
Sector *	64 Neutral	$12.78B	9.87	7.67%	17015.06%	12.34%	-5.99%
WHG	60 Neutral	$139.57M	518.47	0.33%	4.03%	0.52%	-96.93%