Farmers Merchants Net Income vs. Profit Margin

FMCB Stock  USD 1,036  4.25  0.41%   
Based on Farmers Merchants' profitability indicators, Farmers Merchants Bancorp may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Farmers Merchants' ability to earn profits and add value for shareholders.
For Farmers Merchants profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Farmers Merchants to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Farmers Merchants Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Farmers Merchants's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Farmers Merchants Bancorp over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Farmers Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine if Farmers Merchants is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Farmers Merchants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Farmers Merchants Bancorp Profit Margin vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Farmers Merchants's current stock value. Our valuation model uses many indicators to compare Farmers Merchants value to that of its competitors to determine the firm's financial worth.
Farmers Merchants Bancorp is one of the top stocks in net income category among its peers. It also is one of the top stocks in profit margin category among its peers . The ratio of Net Income to Profit Margin for Farmers Merchants Bancorp is about  176,707,512 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Farmers Merchants by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Farmers Merchants' OTC Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Farmers Profit Margin vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Farmers Merchants

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
66.34 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Farmers Merchants

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.38 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Farmers Profit Margin Comparison

Farmers Merchants is currently under evaluation in profit margin category among its peers.

Farmers Merchants Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Farmers Merchants, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Farmers Merchants will eventually generate negative long term returns. The profitability progress is the general direction of Farmers Merchants' change in net profit over the period of time. It can combine multiple indicators of Farmers Merchants, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Farmers Merchants Bancorp operates as the bank holding company for Farmers Merchants Bank of Central California that provides various banking services to businesses and individuals. Farmers Merchants Bancorp was founded in 1916 and is headquartered in Lodi, California. Farmers Merch operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 373 people.

Farmers Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Farmers Merchants. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Farmers Merchants position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Farmers Merchants' important profitability drivers and their relationship over time.

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Additional Information and Resources on Investing in Farmers OTC Stock

When determining whether Farmers Merchants Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Farmers Merchants' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Farmers Merchants Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Farmers Merchants Bancorp Stock:
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Note that the Farmers Merchants Bancorp information on this page should be used as a complementary analysis to other Farmers Merchants' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
To fully project Farmers Merchants' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Farmers Merchants Bancorp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Farmers Merchants' income statement, its balance sheet, and the statement of cash flows.
Potential Farmers Merchants investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Farmers Merchants investors may work on each financial statement separately, they are all related. The changes in Farmers Merchants's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Farmers Merchants's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.