Farmers and Merchants Bancshares (FMFG) AI Stock Analysis

• Market Cap: $50.08M
• Dividend Yield: 4.29%
• Average Volume (3M): 187.00
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.04
• Revenue Growth: 14.44%
• EPS Growth: -17.05%
• Country: US
• Employees: 94
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.38
• Shares Outstanding: 3,175,347
• 10 Day Avg. Volume: 480
• 30 Day Avg. Volume: 187
• PEG Ratio: -0.44
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 2.88
• P/FCF Ratio: 67.42
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: 8.16
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ―

Farmers and Merchants Bancshares faces notable risks due to its latest financial report showing zero revenue and equity, which significantly impacts its financial performance score. While the valuation metrics suggest a potential opportunity, the technical analysis indicates bearish market sentiment. Investors should proceed with caution, prioritizing clarity on the company's current financial anomalies.

Farmers and Merchants Bancshares Business Overview & Revenue Model

Company Description

Farmers and Merchants Bancshares, Inc., through its subsidiary Farmers and Merchants Bank, provides commercial and retail banking services to individuals and businesses in Baltimore and Carroll counties in Maryland, and surrounding areas of northern Maryland. It offers checking, savings, money market, individual retirement, and sweep accounts, as well as certificates of deposit, remote check deposits, and repurchase agreements. The company also provides credit for residential mortgages, including federal housing administration and veterans affairs loans; construction loans; home equity lines; personal installment loans; and other consumer financing, as well as finances commerce and industry by providing credit and deposit services for small to medium size businesses and the agricultural community. In addition, it offers commercial lending, which includes commercial mortgages, land acquisition and development loans, lines of credit, accounts receivable financing, and term loans for fixed asset purchases, as well as loans guaranteed by the Small Business Administration and the United States Department of Agriculture. Further, the company provides automated teller machine, internet, mobile banking, and automated telephone services, as well as debit and credit cards. It serves customers through its office located in Upperco, Maryland; six branches located in Hampstead, Greenmount, Reisterstown, Owings Mills, Eldersburg, and Westminster, Maryland; and a satellite branch located in Westminster, Maryland. Farmers and Merchants Bancshares, Inc. was founded in 1919 and is headquartered in Hampstead, Maryland.

How the Company Makes Money

Farmers and Merchants Bancshares generates revenue primarily through interest income from loans and other financial products. The company earns interest by lending money to individuals and businesses and charging an interest rate on these loans. Additionally, FMFG earns non-interest income through service charges on deposit accounts, fees for various banking services, and gains from the sale of loan products. The company's profitability is influenced by its ability to manage interest rate spreads, attract and retain depositors, and effectively control operational costs. Moreover, strategic partnerships and investments in financial technology may also contribute to its earnings by enhancing operational efficiency and expanding service offerings.

Farmers and Merchants Bancshares Financial Statement Overview

Summary

Farmers and Merchants Bancshares shows significant weaknesses in its latest financial data, particularly with zero reported revenue and equity. Historically, the company demonstrated profitability and operational efficiency, but the current anomalies suggest potential financial instability and require further investigation.

Income Statement

The company's revenue has shown inconsistency over the years, with fluctuations in total revenue. The net profit margin was healthy in previous years but dropped significantly in the latest year due to zero revenue reported, which is concerning. EBIT margins have been strong in the past, though unavailable for the latest period, indicating potential operational efficiency. However, the absence of revenue in the most recent year is a significant weakness.

Balance Sheet

The balance sheet suggests a relatively stable financial position in previous years with a positive equity base and manageable debt levels. However, the latest report shows total liabilities and stockholders' equity as zero, possibly indicating data issues or structural changes, which is a risk. Historically, the debt-to-equity ratio was manageable, and equity ratio was satisfactory, providing a stable capital structure.

Cash Flow

Cash flow metrics indicate fluctuations in free cash flow and operating cash flow over the years. The company managed to generate positive free cash flow historically, but the latest data shows no cash flow, indicating potential liquidity issues. The operating cash flow to net income ratio previously indicated efficient cash generation, yet the latest absence raises concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.56M	22.30M	23.57M	25.27M	24.71M	18.75M
Gross Profit	18.92M	22.30M	23.57M	25.27M	24.36M	16.69M
EBITDA	5.90M	0.00	8.94M	0.00	11.07M	3.58M
Net Income	4.34M	4.28M	6.42M	8.09M	8.15M	2.68M
Balance Sheet
Total Assets	842.22M	845.52M	799.94M	718.21M	717.40M	677.32M
Cash, Cash Equivalents and Short-Term Investments	151.72M	190.37M	44.69M	7.26M	174.85M	40.98M
Total Debt	25.16M	16.33M	58.98M	41.44M	21.98M	48.17M
Total Liabilities	781.97M	789.24M	747.76M	670.44M	660.77M	624.55M
Stockholders Equity	60.25M	56.27M	52.18M	47.77M	56.62M	51.73M
Cash Flow
Free Cash Flow	1.85M	953.00K	5.04M	6.75M	11.40M	3.75M
Operating Cash Flow	2.26M	2.29M	5.90M	7.16M	11.70M	4.14M
Investing Cash Flow	-33.53M	-22.71M	-42.36M	-35.36M	-58.98M	-45.39M
Financing Cash Flow	38.04M	40.39M	73.88M	9.00M	32.77M	73.10M

Farmers and Merchants Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMFG, the sentiment is Negative. The current price of 16.3 is below the 20-day moving average (MA) of 16.78, below the 50-day MA of 16.61, and below the 200-day MA of 16.43, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 26.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FMFG.

Farmers and Merchants Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPHC	72 Outperform	$47.83M	3.17	14.85%	―	25.77%	12.09%
ASRV	68 Neutral	$49.56M	13.40	3.45%	4.00%	6.06%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FMFG	57 Neutral	$50.08M	11.50	7.57%	4.29%	14.44%	-17.05%
TCBS	53 Neutral	$47.87M	20.58	4.50%	0.99%	13.47%	―

Farmers and Merchants Bancshares Corporate Events

Farmers and Merchants Bancshares Announces CFO Retirement

On April 29, 2025, Farmers and Merchants Bancshares, Inc. announced the retirement of Mark C. Krebs, the CFO, effective June 30, 2025, with Paul B. Susie set to take over the role. The company reported a net income of $1.2 million for Q1 2025, consistent with the previous year, despite a slight decrease in return on average equity and assets. The company’s net interest income increased due to higher yields on earning assets, although this was offset by higher costs of funds. The company experienced strong loan growth, with a $17.1 million increase in net loans, and opened a new commercial banking office in Towson, Maryland, contributing to new loans and deposits. Despite a decrease in total assets and deposits, the company’s liquidity position remains strong, with access to approximately $337.8 million in liquidity.

Spark’s Take on FMFG Stock

According to Spark, TipRanks’ AI Analyst, FMFG is a Neutral.

Farmers and Merchants Bancshares faces notable risks due to its latest financial report showing zero revenue and equity, which significantly impacts its financial performance score. While the valuation metrics suggest a potential opportunity, the technical analysis indicates bearish market sentiment. Investors should proceed with caution, prioritizing clarity on the company’s current financial anomalies.

To see Spark’s full report on FMFG stock, click here.