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Farmers and Merchants Bancshares
(OTC:FMFG)
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Rating:68Neutral
Price Target:
$20.50
▲(9.63% Upside)
Action:Downgraded
Date:09/24/26
The score is driven primarily by solid-but-mixed financial performance: good revenue growth and improving TTM returns are offset by weaker recent cash generation and elevated leverage. Valuation provides meaningful support (low P/E and healthy dividend), while technicals are broadly neutral and the corporate event is a modest governance positive.
Positive Factors
Revenue Growth
Sustained revenue expansion indicates that FMFG has continued growing its banking franchise and customer-related income over several years. The increase into TTM provides a durable base for earnings growth, although future benefits will depend on preserving profitability as the business scales.
Negative Factors
Margin Compression
The substantial multi-year decline in net margin shows that revenue growth has not translated into the level of profitability achieved earlier in the cycle. Persistent margin pressure can reduce earnings resilience, limit capital generation, and make results more sensitive to operating and funding costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained revenue expansion indicates that FMFG has continued growing its banking franchise and customer-related income over several years. The increase into TTM provides a durable base for earnings growth, although future benefits will depend on preserving profitability as the business scales.
Read all positive factors
Farmers and Merchants Bancshares (FMFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$61.21M
Dividend Yield3.82%
Average Volume (3M)1.12K
Price to Earnings (P/E)8.4
Beta (1Y)0.13
Revenue Growth9.49%
EPS Growth60.97%
CountryUS
Employees93
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.24
Shares Outstanding3,262,958
10 Day Avg. Volume570
30 Day Avg. Volume1,117
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)0.84
Price to Sales (P/S)1.23
P/FCF Ratio8.69
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Farmers and Merchants Bancshares Business Overview & Revenue Model
Company Description
Farmers and Merchants Bancshares, Inc. operates as the bank holding company for Farmers and Merchants Bank that provides commercial and retail banking services to individuals and businesses in Maryland. It offers checking, savings, money market, i...
How the Company Makes Money
FMFG primarily makes money through its banking subsidiary by earning net interest income and generating fee-based (noninterest) income. Net interest income is generally the largest driver of earnings for community banks and is produced by (1) inte...
Farmers and Merchants Bancshares Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
61
Positive
Cash Flow
53
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.41M | 44.15M | 39.47M | 32.41M | 28.09M | 27.49M |
| Gross Profit | 28.09M | 25.49M | 21.80M | 23.07M | 25.47M | 24.36M |
| EBITDA | 10.10M | 8.11M | 6.15M | 8.94M | 11.06M | 11.07M |
| Net Income | 7.12M | 5.77M | 4.28M | 6.42M | 8.09M | 8.15M |
Balance Sheet | ||||||
| Total Assets | 874.21M | 871.96M | 844.64M | 799.94M | 718.21M | 716.68M |
| Cash, Cash Equivalents and Short-Term Investments | 163.41M | 164.84M | 183.60M | 200.98M | 132.83M | 174.85M |
| Total Debt | 74.32M | 79.05M | 24.58M | 58.98M | 40.27M | 28.70M |
| Total Liabilities | 806.62M | 807.30M | 788.37M | 747.76M | 670.44M | 660.06M |
| Stockholders Equity | 67.59M | 64.66M | 56.27M | 52.18M | 47.77M | 56.62M |
Cash Flow | ||||||
| Free Cash Flow | 3.58M | 6.24M | 953.00K | 5.04M | 6.75M | 11.40M |
| Operating Cash Flow | 3.69M | 6.61M | 2.29M | 5.90M | 7.16M | 11.70M |
| Investing Cash Flow | -6.89M | -42.06M | -22.71M | -42.36M | -35.36M | -58.98M |
| Financing Cash Flow | 23.31M | 17.47M | 40.39M | 73.88M | 9.00M | 32.77M |
Farmers and Merchants Bancshares Technical Analysis
Neutral
18.70
Price Trends
18.89
Negative
18.33
Positive
17.99
Positive
Market Momentum
-0.01
Positive
43.93
Neutral
36.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMFG, the sentiment is Neutral. The current price of 18.7 is below the 20-day moving average (MA) of 18.81, below the 50-day MA of 18.89, and above the 200-day MA of 17.99, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 36.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FMFG.
Farmers and Merchants Bancshares Risk Analysis
Farmers and Merchants Bancshares disclosed 36 risk factors in its most recent earnings report. Farmers and Merchants Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Farmers and Merchants Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $112.59M | 5.04 | 16.39% | ― | 24.01% | 20.16% | |
68 Neutral | $61.21M | 8.38 | 10.90% | 3.82% | 9.49% | 60.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $80.14M | 9.09 | 7.13% | 2.60% | 4.91% | 127.20% | |
65 Neutral | $49.84M | 14.41 | 6.14% | 1.45% | 5.94% | 51.02% |
* Financial Sector Average
FMFG
Farmers and Merchants Bancshares
18.68
2.06
12.40%
ASRV
Ameriserv Financial
4.61
1.82
64.94%
OPHC
Optimumbank Holdings
8.72
4.64
113.73%
FSEA
First Seacoast Bancorp
17.25
5.77
50.26%
TCBS
Texas Community
17.29
1.36
8.54%
Farmers and Merchants Bancshares Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Farmers and Merchants Bancshares Elects Mark Krebs Director
Positive
Sep 23, 2026
On September 21, 2026, Farmers and Merchants Bancshares, Inc. and its subsidiary Farmers and Merchants Bank elected former longtime executive Mark C. Krebs as a Class I director to serve until the 2027 annual meeting, also appointing him to the As...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.