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Farmers and Merchants Bancshares has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Farmers and Merchants Bancshares Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Farmers and Merchants Bancshares's interest coverage with the available data.
Farmers and Merchants Bancshares's debt to revenue ratio for the quarter that ended in Dec. 2025 was 1.77.
Altman Z-Score does not apply to banks and insurance companies.
Farmers and Merchants Bancshares (OTCPK:FMBN) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Farmers and Merchants Bancshares has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Farmers and Merchants Bancshares Financial Strength Related Terms
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Farmers and Merchants Bancshares (FMBN) has a Financial Strength of 3 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Farmers and Merchants Bancshares and its competitors. This is 50% above median its historical median of 2.00. Over the past decade, Farmers and Merchants Bancshares' Financial Strength has ranged from 2.00 to 6.00.
Is Farmers and Merchants Bancshares' Financial Strength too high?
Farmers and Merchants Bancshares' current Financial Strength of 3 is 50% above median its 10-year median of 2.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 6.00. Overall, Farmers and Merchants Bancshares has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Farmers and Merchants Bancshares' Financial Strength compare to BOTJ and CMHF?
Farmers and Merchants Bancshares' Financial Strength of 3 can be compared against companies in the Banks industry. Historically, Farmers and Merchants Bancshares' own Financial Strength has ranged from 2.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Banks company?
A good Financial Strength depends on the Banks industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Farmers and Merchants Bancshares and its competitors. Farmers and Merchants Bancshares's current Financial Strength is 3, which is 50% above median its own 10-year median of 2.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Farmers and Merchants Bancshares stock overvalued right now?
Based on GuruFocus' analysis, Farmers and Merchants Bancshares (FMBN) is currently considered Significantly Overvalued. The stock's GF Value™ is $24.00, compared to a current price of $39.00 — trading 62.5% above its estimated fair value. The current Financial Strength is 3, which is 50% above median its 10-year median of 2.00. Farmers and Merchants Bancshares' overall GF Score™ is 49/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Farmers and Merchants Bancshares (FMBN), the current Financial Strength is 3 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Farmers and Merchants Bancshares (FMBN) Overvalued in 2026?
Based on GuruFocus' analysis, Farmers and Merchants Bancshares stock appears to be overvalued.
The current stock price of $39.00 is trading 62.5% above its estimated GF Value™ of $24.00.
GuruFocus considers Farmers and Merchants Bancshares to be Significantly Overvalued.
Key valuation signals for FMBN:
Financial Strength: 3 (50% above median its 10-year median of 2.00)
GF Value™: $24.00 vs. price of $39.00 (62.5% above fair value)
No single metric tells the full story. See the FMBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Farmers and Merchants Bancshares Inc is a bank holding company. The company provides financial services through its offices in the greater Burlington, Iowa area. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, agricultural, commercial and installment loans.
49GF Score
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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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