First Farmers and MerchantsFFMH 64 ROE % is 12.66% as of Mar. 2026, which is 5% above its 10-year median of 12.05. GuruFocus rates FFMH with a GF Score™ of 64/100 and a GF Value™ of $45.39 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,524 Banks companies, First Farmers and Merchants ranks better than 63.32% on this metric.
The historical rank and industry rank for First Farmers and Merchants's ROE % or its related term are showing as below:
FFMH'
s ROE % Range Over the Past 10 Years
Min: 9.33 Med: 12.05 Max: 14.54
Current: 12.06
During the past 8 years, First Farmers and Merchants's highest ROE % was 14.54%. The lowest was 9.33%. And the median was 12.05%.
FFMH's ROE % is ranked better than 63.32% of 1524
companies
in the Banks industry
Industry Median: 10.22
vs FFMH: 12.06
First Farmers and Merchants (OTCPK:FFMH) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Banks - Regional subindustry, First Farmers and Merchants's ROE %, along with its competitors' market caps and ROE % 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.
First Farmers and Merchants ROE % vs Banks Industry
For the Banks industry and Financial Services sector, First Farmers and Merchants's ROE % distribution charts can be found below:
* The bar in red indicates where First Farmers and Merchants's ROE % falls into.
* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
First Farmers and Merchants (FFMH) has a ROE % of 12.66% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First Farmers and Merchants and its competitors. This is near median its historical median of 12.05. Over the past decade, First Farmers and Merchants' ROE % has ranged from 9.33 to 14.54. According to the industry distribution chart, First Farmers and Merchants ranks #559 out of 1524 companies in the Banks industry, placing it in the top 36.7%.
Is First Farmers and Merchants' ROE % too high?
First Farmers and Merchants' current ROE % of 12.66% is near median its 10-year median of 12.05. Over the past 10 years, this metric has ranged from a low of 9.33 to a high of 14.54. The Banks industry median ROE % is 10.22. First Farmers and Merchants' value of 12.66% is 23.9% above this industry median. Based on the distribution chart, First Farmers and Merchants ranks #559 out of 1524 companies in the Banks industry, which is above the industry midpoint. Overall, First Farmers and Merchants has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does First Farmers and Merchants' ROE % compare to OVBC and FBLA?
According to the Banks industry distribution chart, First Farmers and Merchants ranks #559 out of 1524 companies for ROE %. This puts First Farmers and Merchants in the upper half of its industry. The industry median ROE % is 10.22. First Farmers and Merchants' value of 12.66% is 23.9% above this benchmark. Historically, First Farmers and Merchants' own ROE % has ranged from 9.33 to 14.54 over the past decade. While the company's 10-year median is 12.05 vs. the industry median of 10.22, First Farmers and Merchants 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Farmers and Merchants's current ROE % of 12.66% is 23.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First Farmers and Merchants and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Farmers and Merchants's current ROE % is 12.66%, which is near median its own 10-year median of 12.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Farmers and Merchants stock overvalued right now?
Based on GuruFocus' analysis, First Farmers and Merchants (FFMH) is currently considered Modestly Overvalued. The stock's GF Value™ is $45.39, compared to a current price of $57.75 — trading 27.2% above its estimated fair value. The current ROE % is 12.66%, which is near median its 10-year median of 12.05 and 23.9% above the Banks industry median of 10.22. First Farmers and Merchants' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For First Farmers and Merchants (FFMH), the current ROE % is 12.66% as of Mar. 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 First Farmers and Merchants (FFMH) Overvalued in 2026?
Based on GuruFocus' analysis, First Farmers and Merchants stock appears to be overvalued.
The current stock price of $57.75 is trading 27.2% above its estimated GF Value™ of $45.39.
GuruFocus considers First Farmers and Merchants to be Modestly Overvalued.
Key valuation signals for FFMH:
ROE %: 12.66% (near median its 10-year median of 12.05)
GF Value™: $45.39 vs. price of $57.75 (27.2% above fair value)
Industry Position: 23.9% above the Banks median (#559 of 1524)
No single metric tells the full story. See the FFMH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Farmers and Merchants Corp is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary. The Bank is engaged in providing a full range of banking and financial services, including lending, investing of funds, obtaining deposits, trust, and wealth management operations, and other financing activities to individual and corporate customers in the Middle Tennessee area. The Bank is subject to competition from other financial institutions. It has one reportable segment, which is banking and financial services.
64GF Score
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