Latest Ratios: P/E Ratio 9.0x · EV/EBITDA 12.6x · ROE 9.4%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $422M | $338M | $395M | $338M | $356M | $380M | $254M | $333M | $357M | $376M | $161M |
| Enterprise Value | $624M | $539M | $526M | $523M | $495M | $361M | $200M | $351M | $348M | $383M | $212M |
| P/E Ratio → | 8.99 | 7.25 | 15.50 | 14.85 | 11.05 | 16.33 | 12.78 | 18.16 | 23.91 | 29.57 | 13.89 |
| P/S Ratio | 2.23 | 1.79 | 2.24 | 2.22 | 3.13 | 4.12 | 2.98 | 4.25 | 6.39 | 7.41 | 3.38 |
| P/B Ratio | 1.13 | 0.91 | 1.18 | 1.07 | 1.19 | 1.28 | 1.02 | 1.44 | 2.49 | 2.80 | 1.28 |
| P/FCF | 12.20 | 9.76 | 12.91 | 30.16 | 9.35 | 11.59 | 10.53 | 16.28 | 44.07 | 23.86 | 16.10 |
| P/OCF | 11.61 | 9.29 | 12.17 | 15.28 | 8.75 | 10.93 | 9.29 | 13.90 | 33.29 | 21.31 | 12.98 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.85 | 2.98 | 3.44 | 4.35 | 3.92 | 2.34 | 4.48 | 6.23 | 7.54 | 4.44 |
| EV / EBITDA | 12.59 | 10.89 | 13.50 | 15.33 | 11.12 | 10.47 | 6.76 | 13.35 | 16.98 | 19.10 | 11.47 |
| EV / EBIT | 14.66 | 12.68 | 16.15 | 18.46 | 12.22 | 12.25 | 7.92 | 15.42 | 19.07 | 21.40 | 13.02 |
| EV / FCF | — | 15.57 | 17.19 | 46.65 | 12.99 | 11.02 | 8.26 | 17.19 | 42.92 | 24.30 | 21.19 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 62.3% | 62.3% | 55.9% | 60.4% | 83.3% | 88.3% | 79.6% | 79.7% | 87.7% | 89.5% | 88.8% |
| Operating Margin | 22.5% | 22.5% | 18.4% | 18.6% | 35.6% | 32.0% | 29.6% | 29.1% | 32.6% | 35.3% | 34.1% |
| Net Profit Margin | 17.6% | 17.6% | 14.7% | 15.0% | 28.6% | 25.5% | 23.6% | 23.5% | 26.7% | 25.0% | 24.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.4% | 9.4% | 8.0% | 7.4% | 10.9% | 8.6% | 8.4% | 9.9% | 10.8% | 9.8% | 9.5% |
| ROA | 1.0% | 1.0% | 0.8% | 0.7% | 1.2% | 1.0% | 1.1% | 1.4% | 1.3% | 1.2% | 1.1% |
| ROIC | 4.9% | 4.9% | 3.8% | 3.6% | 6.4% | 6.1% | 6.3% | 7.1% | 7.7% | 7.0% | 5.9% |
| ROCE | 6.5% | 6.5% | 5.0% | 5.1% | 9.3% | 8.9% | 9.7% | 11.4% | 12.9% | 13.0% | 12.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.81 | 0.81 | 0.92 | 1.04 | 0.76 | 0.43 | 0.19 | 0.32 | 0.22 | 0.33 | 0.64 |
| Debt / EBITDA | 6.06 | 6.06 | 7.91 | 9.63 | 5.09 | 3.71 | 1.63 | 2.77 | 1.57 | 2.22 | 4.34 |
| Net Debt / Equity | — | 0.54 | 0.39 | 0.58 | 0.47 | -0.06 | -0.22 | 0.08 | -0.07 | 0.05 | 0.41 |
| Net Debt / EBITDA | 4.07 | 4.07 | 3.36 | 5.42 | 3.12 | -0.54 | -1.86 | 0.70 | -0.46 | 0.35 | 2.76 |
| Debt / FCF | — | 5.81 | 4.27 | 16.49 | 3.64 | -0.57 | -2.27 | 0.90 | -1.15 | 0.44 | 5.09 |
| Interest Coverage | 0.61 | 0.61 | 0.42 | 0.49 | 2.82 | 4.02 | 2.43 | 1.54 | 2.78 | 3.49 | 3.86 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.11 | 0.11 | 0.22 | 0.19 | 0.19 | 0.26 | 0.25 | 0.20 | 0.22 | 0.24 | 0.27 |
| Quick Ratio | 0.11 | 0.11 | 0.22 | 0.19 | 0.19 | 0.26 | 0.25 | 0.20 | 0.22 | 0.24 | 0.27 |
| Cash Ratio | 0.04 | 0.04 | 0.07 | 0.05 | 0.03 | 0.07 | 0.06 | 0.04 | 0.04 | 0.04 | 0.03 |
| Asset Turnover | — | 0.06 | 0.05 | 0.05 | 0.04 | 0.03 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.9% | 3.6% | 3.0% | 3.4% | 2.9% | 2.0% | 2.8% | 1.9% | 1.4% | 1.2% | 2.6% |
| Payout Ratio | 36.3% | 36.3% | 46.0% | 49.7% | 31.6% | 32.6% | 35.8% | 34.5% | 33.2% | 34.9% | 35.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.1% | 13.8% | 6.5% | 6.7% | 9.1% | 6.1% | 7.8% | 5.5% | 4.2% | 3.4% | 7.2% |
| FCF Yield | 8.2% | 10.2% | 7.7% | 3.3% | 10.7% | 8.6% | 9.5% | 6.1% | 2.3% | 4.2% | 6.2% |
| Buyback Yield | 0.1% | 0.1% | 0.2% | 0.1% | 0.1% | 0.1% | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% |
| Total Shareholder Yield | 3.0% | 3.7% | 3.2% | 3.4% | 3.0% | 2.1% | 3.0% | 2.0% | 1.5% | 1.2% | 2.7% |
| Shares Outstanding | — | $14M | $13M | $14M | $13M | $12M | $11M | $11M | $9M | $9M | $9M |
Agricultural credit cycle sensitivity
Based on reported figures, FMAO trades at a P/B of 1.12, which appears to reflect a market consensus that values the bank as a stable, income-oriented franchise rather than a high-growth entity, especially when compared to the broader peer group's valuation multiples.
The current P/B multiple suggests that investors are not pricing in significant franchise premiums, likely due to the bank's geographic concentration and reliance on agricultural cycles. The valuation appears to be anchored by the bank's tangible book value, implying that the market requires further evidence of sustainable ROE expansion before assigning a higher multiple.
As reported in financial statements, FMAO's ROE has remained in a narrow 1.7% to 2.7% range over the last ten quarters, indicating that profitability is currently constrained by a conservative balance sheet structure rather than operational inefficiency or high credit costs.
The DuPont decomposition suggests that the bank's reliance on a large securities portfolio relative to its loan book limits the potential for higher asset utilization. While the net margin remains healthy, the bank's profitability appears to be structurally capped by its decision to prioritize capital preservation over aggressive leverage.
According to recent SEC filings, FMAO has maintained a consistent NIM of 0.8% over the past four quarters, demonstrating a disciplined approach to managing interest rate risk despite the competitive landscape for deposits in the Ohio and Indiana markets.
The efficiency ratio, which has fluctuated between 34.3% and 40.6%, suggests that management is successfully controlling operating expenses even as they expand their footprint. Investors should monitor whether the bank can maintain this efficiency as it moves into more competitive urban markets that may require higher marketing and digital investment.
Based on the bank's reported figures, the equity-to-assets ratio has remained remarkably stable at approximately 0.10 to 0.11 over the last ten quarters, providing a robust capital cushion that supports the bank's ongoing expansion into new Indiana markets.
This capital position appears to be a strategic choice, allowing the bank to absorb potential volatility in its agricultural loan portfolio without compromising its dividend policy. The current level of capitalization suggests that the bank has significant capacity for future growth or capital return, provided that management identifies accretive opportunities.
Investors frequently misapply the P/E ratio to FMAO, which obscures the bank's true economic value by failing to account for the significant influence of subjective loan loss provisions and the volatility inherent in the bank's large securities portfolio.
Because the P/E ratio is highly sensitive to quarterly provision adjustments, it often provides a distorted view of the bank's underlying earnings power. Analysts should instead prioritize P/TBV and ROE, as these metrics better reflect the bank's capital-intensive nature and the long-term value of its specialized agricultural lending franchise.
Includes 30+ ratios · 28 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying FMAO stock.
Farmers & Merchants Bancorp, Inc.'s current P/E ratio is 9.0x. The historical average is 14.2x. This places it at the 5th percentile of its historical range.
Farmers & Merchants Bancorp, Inc.'s current EV/EBITDA is 12.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.1x.
Farmers & Merchants Bancorp, Inc.'s return on equity (ROE) is 9.4%. The historical average is 9.5%.
Based on historical data, Farmers & Merchants Bancorp, Inc. is trading at a P/E of 9.0x. This is at the 5th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Farmers & Merchants Bancorp, Inc.'s current dividend yield is 2.88% with a payout ratio of 36.3%.
Farmers & Merchants Bancorp, Inc. has 62.3% gross margin and 22.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Farmers & Merchants Bancorp, Inc.'s Debt/EBITDA ratio is 6.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.