Stock fact sheet · data as of
Farmers & Merchants Bancorp, Inc. (FMAO): fair value, margin of safety and Wheel Score
Ticker symbol FMAO · Financial Services · Banks - Regional · United States · Blend
Is FMAO undervalued?
Farmers & Merchants Bancorp, Inc. (FMAO) closed at 37.48 on 5 Nov 2026, close to the GLS average fair value of 38.63 (3.0% below fair value). 4 of the 9 models that produced a number sit above the price, 5 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
There is a wide gap between GLS Growth (12.42) and 10 Cap (84.87). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for FMAO, so the nightly engine files it under Blend (value score 55, growth score 40, out of 100).
Nine valuation models for FMAO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 15.98 | -57% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 44.25 | +18% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 57.49 | +53% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 16.23 | -57% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 12.42 | -67% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 84.87 | +126% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 68.19 | +82% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 13.83 | -63% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 34.43 | -8% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -200.14 | -634% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 39.00 | +4% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Farmers & Merchants Bancorp, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. On durability FMAO scores 6.5/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are thin or negative - ROIC 5.0%, ROE 9.0%, ROA 1.0% - with debt at 0.81 times equity and a free-cash-flow yield of 9.1%.
The dividend yield is 2.51% at a payout ratio of 29%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Financial Service, Other 78%, Bank Servicing 22% (quarter Q3 FY2026).
Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales; the last recorded insider buy was on 3 Aug 2026.
| Piotroski F-score | 8 / 9 | ROIC | 5.0% |
|---|---|---|---|
| GLS Moat | 6.5 / 10 | ROE | 9.0% |
| Debt / equity | 0.81 | ROA | 1.0% |
| Free-cash-flow yield | 9.1% | Payout ratio | 29% |
| Institutions | 5 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 41: Weak
With a Wheel Score of 41 Farmers & Merchants Bancorp, Inc. sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (78 open interest, 25 a day); and filter 8, big enough - market cap $516M (under $1.0B); Option trading (weak) is its weakest part.
Implied volatility is 41% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 78 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 99k shares a day on a market cap of $516M, with a beta of 0.78 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (78 open interest, 25 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $516M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 3% below fair value | |
| Premium | Strong | implied volatility 41% | |
| Moat | Good | moat 6.5/10 | |
| Health | Strong | Piotroski 8/9 | |
| Red Flags | Strong | Red Flags score 95/100 | |
| Option trading | Weak | 25 contracts a day, 78 open interest | |
| Stability | Fair | beta 0.78, $516M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for FMAO in the nightly calendar.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to Farmers & Merchants Bancorp, Inc. by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CZNC Citizens & Northern Corporation | 28.56 | 32.46 | +12% | 43Weak | $512M |
| FFMR First Farmers Financial Corporation | 37.50 | 61.98 | +39% | 38No options | $520M |
| FRBA First Bank | 20.54 | 28.65 | +28% | 48Weak | $508M |
| WTBA West Bancorporation, Inc. | 31.13 | 31.73 | +2% | 40Weak | $531M |
| PBAM Private Bancorp of America, Inc. | 87.43 | 129.30 | +32% | 33No options | $501M |
| PDLB Ponce Financial Group, Inc. | 22.18 | 71.16 | +69% | 46Weak | $536M |
| OBT Orange County Bancorp, Inc. | 40.42 | 67.81 | +40% | 32No options | $542M |
| NRIM Northrim BanCorp, Inc. | 24.50 | 63.91 | +62% | 50Fair | $545M |
| HBCP Home Bancorp, Inc. | 61.91 | 89.80 | +31% | 53Fair | $487M |
| BMRC Bank of Marin Bancorp | 29.52 | 51.77 | +43% | 48Weak | $479M |
| BSRR Sierra Bancorp | 42.85 | 69.67 | +38% | 56Fair | $556M |
| SUPV Grupo Supervielle S.A. | 5.89 | 3.67 | -61% | 13Weak | $557M |
⚖ Compare FMAO with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about FMAO
Is FMAO undervalued right now?
Not meaningfully: at 37.48 the stock trades within a few percent of the GLS average fair value of 38.63 (3.0% below fair value, data as of 5 Nov 2026).
What is the Wheel Score of FMAO and what does it mean?
FMAO scores 41 out of 100 (Weak) - it fails Wheel Trade Filters 1, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for FMAO?
38.63 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Farmers & Merchants Bancorp, Inc. report earnings next?
No upcoming earnings date is recorded for FMAO in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does FMAO have listed options, and how liquid are they?
Yes. The nightly snapshot found 28 listed contracts with 78 open interest across all expiries and implied volatility of 41% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.