FMCB (Farmers & Merchants Bancorp) vs S&P 500 Comparison

FMCB

S&P 500

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FMCB

S&P 500

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FMCB

S&P 500

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Farmers & Merchants Bancorp
Glance View

Market Cap

813.6m USD

Industry

Banking

Farmers & Merchants Bancorp is a bank holding company for Farmers & Merchants Bank, which engages in the provision of financial services to individuals, families, and businesses. The company is headquartered in Lodi, California and currently employs 373 full-time employees. The firm offers a range of deposit instruments, including checking, savings, money market, time certificates of deposit, individual retirement accounts and online banking services for both business and personal accounts. The company provides lending products, such as commercial, commercial real estate, real estate construction, agribusiness, consumer, credit card, residential real estate loans, and equipment leases. Its commercial products include term loans, leases, lines of credit and other working capital financing and letters of credit. Its financing products for individuals include automobile financing, lines of credit, residential real estate, home improvement and home equity lines of credit. The company offers services, such as account reconciliation, on-line account access, and electronic funds transfers by way of domestic and international wire, and automated clearinghouses.

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FMCB Intrinsic Value

Overvaluation 31%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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FMCB

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S&P 500

Stocks Performance
FMCB vs S&P 500

Performance Gap
FMCB vs S&P 500

Performance By Year
FMCB vs S&P 500

Competitors Performance
Farmers & Merchants Bancorp vs Peers

Farmers & Merchants Bancorp
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F FMCB vs S&P 500

Stocks Performance FMCB vs S&P 500

Performance Gap FMCB vs S&P 500

Performance By Year FMCB vs S&P 500

Competitors Performance Farmers & Merchants Bancorp vs Peers

Farmers & Merchants Bancorp Glance View

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F
FMCB

vs

S&P 500

Stocks Performance
FMCB vs S&P 500

Performance Gap
FMCB vs S&P 500

Performance By Year
FMCB vs S&P 500

Competitors Performance
Farmers & Merchants Bancorp vs Peers

Farmers & Merchants Bancorp
Glance View