Farmers National Banc Corp. (NASDAQ:FMNB) is a financial institution that provides a range of banking services. It operates primarily in Ohio, offering personal and business banking, wealth management, and mortgage services. The company competes with other regional banks like First Mid Bancshares, Inc. (FMBH) and The First Bancshares, Inc. (FBMS), among others.
In evaluating Farmers National Banc Corp., the focus is on its Return on Invested Capital (ROIC) of 46.24% and Weighted Average Cost of Capital (WACC) of 13.91%. FMNB boasts a ROIC to WACC ratio of 3.32. This indicates that FMNB is generating returns significantly above its cost of capital, showcasing its efficiency in capital utilization.
Comparatively, First Mid Bancshares, Inc. (FMBH) has a ROIC of 4.05% and a WACC of 11.44%, leading to a ROIC to WACC ratio of 0.35. This suggests that FMBH's returns are not as robust relative to its cost of capital. Similarly, The First Bancshares, Inc. (FBMS) has a ROIC of 2.66% and a WACC of 13.74%, with a ROIC to WACC ratio of 0.19, indicating lower capital efficiency.
First Business Financial Services, Inc. (FBIZ) shows a ROIC of 7.32% and a WACC of 15.71%, resulting in a ROIC to WACC ratio of 0.47. While this is the highest among its peers, it still falls short of FMNB's performance. Civista Bancshares, Inc. (CIVB) and Financial Institutions, Inc. (FISI) also demonstrate lower ratios, with CIVB at 0.39 and FISI at -0.12, further highlighting FMNB's superior capital efficiency.
