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Farmers & Merchants Bank of Long Beach (OTCPK:FMBL) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Farmers & Merchants Bank of Long Beach ROA % Related Terms
Farmers & Merchants Bank of Long Beach ROA % Historical Data
* 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 & Merchants Bank of Long Beach ROA % Chart
Farmers & Merchants Bank of Long Beach Annual Data
For the Banks - Regional subindustry, Farmers & Merchants Bank of Long Beach's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Farmers & Merchants Bank of Long Beach ROA % vs Banks Industry
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Farmers & Merchants Bank of Long Beach (FMBL) has a ROA % of 1.20% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Farmers & Merchants Bank of Long Beach and its competitors. This is 28% above median its historical median of 0.94. Over the past decade, Farmers & Merchants Bank of Long Beach's ROA % has ranged from 0.38 to 1.20. According to the industry distribution chart, Farmers & Merchants Bank of Long Beach ranks #961 out of 1528 companies in the Banks industry, placing it in the top 62.9%.
Is Farmers & Merchants Bank of Long Beach's ROA % too high?
Farmers & Merchants Bank of Long Beach's current ROA % of 1.20% is 28% above median its 10-year median of 0.94. Over the past 10 years, this metric has ranged from a low of 0.38 to a high of 1.20. The Banks industry median ROA % is 1.00. Farmers & Merchants Bank of Long Beach's value of 1.20% is 20% above this industry median. Based on the distribution chart, Farmers & Merchants Bank of Long Beach ranks #961 out of 1528 companies in the Banks industry, which is below the industry midpoint. Overall, Farmers & Merchants Bank of Long Beach has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Farmers & Merchants Bank of Long Beach's ROA % compare to CLBK and MCB?
According to the Banks industry distribution chart, Farmers & Merchants Bank of Long Beach ranks #961 out of 1528 companies for ROA %. This places Farmers & Merchants Bank of Long Beach in the lower half of its industry. The industry median ROA % is 1.00. Farmers & Merchants Bank of Long Beach's value of 1.20% is 20% above this benchmark. Historically, Farmers & Merchants Bank of Long Beach's own ROA % has ranged from 0.38 to 1.20 over the past decade. While the company's 10-year median is 0.94 vs. the industry median of 1.00, Farmers & Merchants Bank of Long Beach has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Banks company?
The median ROA % among Banks companies is 1.00, based on 1,528 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Farmers & Merchants Bank of Long Beach's current ROA % of 1.20% is 20% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Farmers & Merchants Bank of Long Beach and its competitors. For the Banks industry, the median ROA % is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Farmers & Merchants Bank of Long Beach's current ROA % is 1.20%, which is 28% above median its own 10-year median of 0.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Farmers & Merchants Bank of Long Beach stock overvalued right now?
Based on GuruFocus' analysis, Farmers & Merchants Bank of Long Beach (FMBL) is currently considered Significantly Overvalued. The stock's GF Value™ is $7,236.55, compared to a current price of $9,804.97 — trading 35.5% above its estimated fair value. The current ROA % is 1.20%, which is 28% above median its 10-year median of 0.94 and 20% above the Banks industry median of 1.00. Farmers & Merchants Bank of Long Beach's overall GF Score™ is 59/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Farmers & Merchants Bank of Long Beach (FMBL), the current ROA % is 1.20% as of Jun. 2026. 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 & Merchants Bank of Long Beach (FMBL) Overvalued in 2026?
Based on GuruFocus' analysis, Farmers & Merchants Bank of Long Beach stock appears to be overvalued.
The current stock price of $9,804.97 is trading 35.5% above its estimated GF Value™ of $7,236.55.
GuruFocus considers Farmers & Merchants Bank of Long Beach to be Significantly Overvalued.
Key valuation signals for FMBL:
ROA %: 1.20% (28% above median its 10-year median of 0.94)
GF Value™: $7,236.55 vs. price of $9,804.97 (35.5% above fair value)
Industry Position: 20% above the Banks median (#961 of 1528)
No single metric tells the full story. See the FMBL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Farmers & Merchants Bank of Long Beach offers a broad range of banking products and services to individuals, professionals, and small to medium sized businesses. The bank operates branches across California's Los Angeles County, Orange County, and Santa Barbara County, supported by online and mobile banking platforms. As a full service commercial bank, it provides services including demand, money market, savings, and time deposits, as well as loans such as commercial real estate, construction, commercial business, and residential loans, including single family and multifamily financing, along with other business oriented banking services.
59GF Score
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