F & M Bank (FMBM) AI Stock Analysis

• Market Cap: $69.70M
• Dividend Yield: 5.32%
• Average Volume (3M): 1.40K
• Price to Earnings (P/E): 8.1
• Beta (1Y): -0.20
• Revenue Growth: 0.79%
• EPS Growth: 189.08%
• Country: US
• Employees: 170
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 0.70
• Shares Outstanding: 3,563,150
• 10 Day Avg. Volume: 2,539
• 30 Day Avg. Volume: 1,396
• PEG Ratio: 0.48
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.24
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: 3.72
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall stock score for F & M Bank is influenced primarily by financial performance and technical analysis. The main concern is the significant volatility in revenue, as reflected in the financial performance score. However, stable balance sheet metrics and positive cash flows provide some reassurance. Technical indicators are generally positive, supporting a moderately optimistic outlook. Valuation metrics suggest the stock is attractively priced, enhancing the overall score. While financial challenges exist, the stock's valuation and technical position offer potential for investors.

F & M Bank Business Overview & Revenue Model

Company Description

F & M Bank Corp. operates as the bank holding company for Farmers & Merchants Bank that provides commercial banking services in Virginia. The company offers commercial and individual demand and time deposit accounts, savings accounts, checking accounts, money market accounts, internet and mobile banking services, and drive-in banking services. It also provides construction loans, including residential, and land acquisition and development loans; commercial real estate loans; business loans; consumer loans, such as personal loans and lines of credit, automobile loans, deposit account loans, installment and demand loans, and home equity loans; residential mortgage loans; credit cards; dealer finance; farmland loans; multi-family loans; and commercial and industrial loans. In addition, the company offers brokerage services; and life, and commercial and personal insurance products, as well as safe deposit boxes. Further, it originates conventional and government sponsored mortgages; and title insurance and real estate settlement services. As of December 31, 2021, the company operated thirteen banking offices in Rockingham, Shenandoah, Page, and Augusta counties; and a loan production office located in Penn Laird. F & M Bank Corp. was founded in 1908 and is headquartered in Timberville, Virginia.

How the Company Makes Money

F & M Bank makes money primarily through interest income generated from loans provided to individuals and businesses. The bank lends money at a higher interest rate than it pays on customer deposits, which creates a margin that contributes to its earnings. Additionally, F & M Bank generates revenue from fees and service charges associated with various financial products, including account maintenance fees, transaction fees, and penalties. The bank also earns income from its wealth management services, which involve advisory fees and commissions on investment products. Partnerships with other financial institutions and participation in syndicated loan arrangements can also provide additional revenue streams for the bank. Overall, F & M Bank's earnings are driven by its ability to manage interest rate spreads, attract deposits, and grow its lending portfolio.

F & M Bank Financial Statement Overview

Summary

F & M Bank's financial statements show a mixed performance. The income statement is weak due to significant volatility in revenue, leading to a low score. The balance sheet is relatively stable, with manageable leverage and liquidity, earning a moderate score. Cash flows are generally positive but exhibit historical fluctuations, resulting in a moderate score. Overall, financial performance is a concern due to revenue instability.

Income Statement

The income statement shows significant volatility in revenue, with a drastic drop to zero in the latest year. This inconsistency in revenue generation raises concerns about the company's ability to maintain stable operations. The EBIT margin has fluctuated significantly, and the absence of EBITDA data in certain years hinders comprehensive analysis. Historical net income has been positive, but the current period reflects a challenging environment.

Balance Sheet

The balance sheet reflects moderate stability with a relatively low debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio indicates a declining trend in shareholder equity relative to total assets. The bank's liquidity is supported by a substantial amount of cash and short-term investments. Overall, the balance sheet presents a cautiously optimistic view with potential risks if equity continues to decline.

Cash Flow

Cash flow analysis shows variability, with a positive free cash flow in the current period, indicating operational efficiency. The operating cash flow to net income ratio suggests adequate cash generation relative to earnings. However, historical fluctuations in free cash flow and investing activities require careful monitoring to ensure sustained liquidity and financial health.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
58.51M	44.35M	41.38M	1.90M	42.58M	43.25M
	Gross Profit
36.33M	44.35M	36.49M	-2.58M	42.58M	43.25M
	EBIT
2.84M	7.92M	879.00K	16.04M	12.06M	9.93M
	EBITDA
3.82M	9.33M	0.00	998.00K	913.00K	597.00K
	Net Income Common Stockholders
8.53M	7.29M	2.77M	8.32M	10.74M	8.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	95.55M	19.79M	78.53M	415.34M	119.32M
	Total Assets
1.31B	1.30B	1.29B	1.25B	1.22B	966.93M
	Total Debt
6.99M	6.97M	66.93M	76.89M	21.77M	33.20M
	Net Debt
6.99M	-12.16M	46.96M	58.28M	10.32M	20.78M
	Total Liabilities
1.22B	1.22B	1.22B	1.18B	21.77M	33.20M
	Stockholders Equity
91.31M	86.14M	78.32M	70.79M	100.46M	95.63M
Cash Flow		Free Cash Flow
9.54M	7.21M	-3.06M	36.25M	20.72M	1.11M
	Operating Cash Flow
9.88M	7.49M	2.40M	39.89M	21.28M	1.85M
	Investing Cash Flow
47.25M	27.22M	-50.20M	-147.88M	-243.70M	-142.13M
	Financing Cash Flow
-19.70M	-1.47M	36.57M	54.83M	232.13M	142.89M

F & M Bank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.56
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMBM, the sentiment is Negative. The current price of 19.56 is below the 20-day moving average (MA) of 20.01, above the 50-day MA of 19.42, and below the 200-day MA of 20.32, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 1.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FMBM.

F & M Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOTJ	72 Outperform	$63.70M	9.65	10.25%	3.57%	12.23%	-25.92%
AUBN	70 Neutral	$70.12M	11.03	8.32%	5.38%	22.78%	722.30%
FMBM	64 Neutral	$69.70M	8.08	10.09%	5.32%	0.79%	189.08%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%
FUSB	62 Neutral	$74.77M	10.13	8.10%	1.84%	5.07%	-7.24%
UBCP	59 Neutral	$75.03M	10.25	11.29%	5.52%	5.81%	-22.37%

F & M Bank Corporate Events

F&M Bank Appoints Neil Houff as New Director

F&M Bank Corp. has appointed Neil A. Houff as a director, bringing leadership experience from his role as President of Houff Corporation. His appointment, not tied to any prior arrangements with the company, aligns with F&M Bank’s standard compensation for non-employee directors. This strategic move is expected to enhance the bank’s governance ahead of the next annual shareholders’ meeting.