📊 FMBM Key Takeaways
Is F&M Bank Corp. (FMBM) a Good Investment?
F&M Bank demonstrates solid revenue growth (+90% YoY) and strong profitability margins (16.6% net margin), but is constrained by weak asset returns (0.6% ROA) and concerning interest coverage (0.5x), which are critical metrics for banking operations. The high insider trading activity (19 Form 4 filings) and substantial free cash flow generation provide some positive signals, but the low ROA relative to equity base suggests capital efficiency challenges that warrant monitoring.
F&M Bank Corp shows solid balance-sheet conservatism, positive operating profitability, and strong reported revenue growth, but earnings quality looks mixed because net income was flat despite the sharp top-line increase. Fundamentals suggest a stable community bank with decent capital support and cash generation, though returns on assets and equity remain modest and limit conviction.
F&M Bank Corp. Key Strengths (FMBM)
- Exceptional revenue growth of 90% year-over-year
- Strong net profit margin at 16.6% indicating operational efficiency
- Healthy free cash flow of 14.2M with 28.3% FCF margin showing cash generation capability
- Conservative leverage with low debt-to-equity ratio of 0.07x
- Solid cash position of 83.9M relative to long-term debt of 7.0M
- Low leverage with debt-to-equity of 0.07x and a manageable long-term debt balance
- Positive profitability with 19.3% operating margin, 16.6% net margin, and $14.20M in free cash flow
- Revenue grew 90.0% year over year while the bank maintained positive net income
FMBM Stock Risks: F&M Bank Corp. Investment Risks
- Critically low interest coverage ratio of 0.5x indicates insufficient operating income to cover interest obligations, a major concern for banking operations
- Very low return on assets (0.6%) suggests poor capital deployment efficiency, problematic for a financial institution
- High insider trading activity (19 Form 4 filings) may indicate uncertainty or forced selling by management
- Net income growth stalled at 0% YoY despite 90% revenue growth, signaling margin compression or cost escalation
- Modest ROE of 8.2% is below typical banking industry benchmarks
- Net income was flat year over year, indicating weak earnings conversion from the revenue increase
- Return metrics remain modest at 8.2% ROE and 0.6% ROA, which suggests limited efficiency and profitability versus stronger banks
- Reported interest coverage of 0.5x points to potential pressure in funding costs or weak coverage capacity
Key Metrics to Watch
- Interest coverage ratio trend - must improve above 1.5x for financial health
- Return on assets trajectory - need to see improvement toward 0.8-1.0% range typical for regional banks
- Net income growth acceleration - verify if revenue growth can translate to bottom-line expansion
- Net margin stability - monitor for further compression from current 16.6% level
- Loan loss provisions and credit quality metrics - essential for banking fundamentals
- Net interest margin and net income growth
- ROA and ROE improvement
F&M Bank Corp. (FMBM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 28.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
FMBM Profit Margin, ROE & Profitability Analysis
FMBM vs Finance Sector: How F&M Bank Corp. Compares
How F&M Bank Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is F&M Bank Corp. Stock Overvalued? FMBM Valuation Analysis 2026
Based on fundamental analysis, F&M Bank Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
F&M Bank Corp. Balance Sheet: FMBM Debt, Cash & Liquidity
FMBM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: F&M Bank Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.07 reflects profitable operations.
FMBM Revenue Growth, EPS Growth & YoY Performance
FMBM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2023 | $162.0K | -$322.0K | N/A |
| Q2 2023 | $54.0K | $241.0K | N/A |
| Q1 2023 | $28.0K | $1.1M | $0.30 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
F&M Bank Corp. Dividends, Buybacks & Capital Allocation
FMBM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for F&M Bank Corp. (CIK: 0000740806)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FMBM
What is the AI rating for FMBM?
F&M Bank Corp. (FMBM) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FMBM's key strengths?
Claude: Exceptional revenue growth of 90% year-over-year. Strong net profit margin at 16.6% indicating operational efficiency. ChatGPT: Low leverage with debt-to-equity of 0.07x and a manageable long-term debt balance. Positive profitability with 19.3% operating margin, 16.6% net margin, and $14.20M in free cash flow.
What are the risks of investing in FMBM?
Claude: Critically low interest coverage ratio of 0.5x indicates insufficient operating income to cover interest obligations, a major concern for banking operations. Very low return on assets (0.6%) suggests poor capital deployment efficiency, problematic for a financial institution. ChatGPT: Net income was flat year over year, indicating weak earnings conversion from the revenue increase. Return metrics remain modest at 8.2% ROE and 0.6% ROA, which suggests limited efficiency and profitability versus stronger banks.
What is FMBM's revenue and growth?
F&M Bank Corp. reported revenue of $50.1M.
Does FMBM pay dividends?
F&M Bank Corp. pays dividends, with $2.8M distributed to shareholders in the trailing twelve months.
Where can I find FMBM SEC filings?
Official SEC filings for F&M Bank Corp. (CIK: 0000740806) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FMBM's EPS?
F&M Bank Corp. has a diluted EPS of $2.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FMBM's fundamental grade?
Based on our AI fundamental analysis in June 2026, F&M Bank Corp. has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FMBM stock overvalued or undervalued?
Valuation metrics for FMBM: ROE of 8.2% (sector avg: 12%), net margin of 16.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is FMBM's AI grade for 2026?
Our dual AI analysis gives F&M Bank Corp. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FMBM's free cash flow?
F&M Bank Corp.'s operating cash flow is $14.6M, with capital expenditures of $380.0K. FCF margin is 28.3%.
How does FMBM compare to other Finance stocks?
Vs Finance sector averages: Net margin 16.6% (avg: 25%), ROE 8.2% (avg: 12%), current ratio N/A (avg: 1.2).