Farmers & Merchants Bancorp, Inc. (FMAO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-57.2%

$15.80

vs $36.88 price

Levered DCF

$17.01

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

-0.45

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	7.25×	15.5×	14.85×	11.05×	16.33×	12.78×	18.16×	23.91×
P/B	0.91×	1.18×	1.07×	1.19×	1.28×	1.02×	1.44×	2.49×
P/S	1.79×	2.24×	2.22×	3.13×	4.12×	2.98×	4.25×	6.39×
EV / EBITDA	10.89×	13.5×	15.33×	11.12×	10.47×	6.76×	13.35×	16.98×
Gross margin	62.3%	55.9%	60.4%	83.3%	88.3%	79.6%	79.7%	87.7%
Operating margin	22.5%	18.4%	18.6%	35.6%	32.0%	29.6%	29.1%	32.6%
Net margin	17.6%	14.7%	15.0%	28.6%	25.5%	23.6%	23.5%	26.7%
Current ratio	0.11×	0.22×	0.19×	0.19×	0.26×	0.25×	0.2×	0.22×
Debt / equity	0.81×	0.92×	1.04×	0.76×	0.43×	0.19×	0.32×	0.22×
Interest coverage	0.61×	0.42×	0.49×	2.82×	4.02×	2.43×	1.54×	2.78×
Dividend yield	3.6%	3.0%	3.4%	2.9%	2.0%	2.8%	1.9%	1.4%
Payout ratio	36.3%	46.0%	49.7%	31.6%	32.6%	35.8%	34.5%	33.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.0%	7.7%	7.2%	10.9%	7.9%	8.1%	8.0%	10.4%
Return on invested capital	4.8%	3.8%	3.4%	6.2%	5.5%	6.8%	6.1%	8.5%
Return on assets	1.0%	0.8%	0.7%	1.1%	0.9%	1.1%	1.1%	1.3%
Free cash flow yield	10.2%	7.7%	3.3%	10.7%	8.6%	9.5%	6.1%	2.3%
Earnings yield	9.9%	6.6%	6.7%	9.1%	6.2%	7.9%	5.5%	4.2%
Enterprise value	$539.1M	$525.9M	$523.3M	$494.6M	$361.2M	$199.6M	$351M	$348.1M
Net debt / EBITDA	4.07×	3.36×	5.42×	3.12×	-0.54×	-1.86×	0.7×	-0.46×
Cash conversion cycle (days)	0	0	0	0	0	0	0	0