NYSE:AGM.PRD

Stock Analysis Report

Federal Agricultural Mortgage

Executive Summary

Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States.

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.

Risks

  • Federal Agricultural Mortgage is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Federal Agricultural Mortgage's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

NYSE:AGM.PRD

0.9%

US Mortgage

0.2%

US Market


1 Year Return

n/a

NYSE:AGM.PRD

-2.0%

US Mortgage

-0.7%

US Market

No trading data on AGM.PRD.

No trading data on AGM.PRD.


Share holder returns

AGM.PRDIndustryMarket
7 Day1.5%0.9%0.2%
30 Day1.9%-1.9%-2.7%
90 Day4.6%-0.4%1.6%
1 Yearn/a0.05%-2.0%1.6%-0.7%
3 Yearn/a32.3%23.5%40.0%30.9%
5 Yearn/a56.8%40.3%53.8%36.8%

Price Volatility Vs. Market

How volatile is Federal Agricultural Mortgage's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Federal Agricultural Mortgage undervalued based on future cash flows and its price relative to the stock market?

8.88x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Federal Agricultural Mortgage's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Federal Agricultural Mortgage's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Federal Agricultural Mortgage is good value based on earnings compared to the US Mortgage industry average.

Federal Agricultural Mortgage is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Federal Agricultural Mortgage is poor value based on expected growth next year.


Price Based on Value of Assets

Federal Agricultural Mortgage is overvalued based on assets compared to the US Mortgage industry average.


Next Steps

Future Growth

How is Federal Agricultural Mortgage expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Federal Agricultural Mortgage's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

Federal Agricultural Mortgage's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Federal Agricultural Mortgage's revenue growth is positive but not above the United States of America market average.

Federal Agricultural Mortgage's earnings growth is positive but not above the United States of America market average.

Federal Agricultural Mortgage's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Federal Agricultural Mortgage will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Federal Agricultural Mortgage performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Federal Agricultural Mortgage's year on year earnings growth rate has been positive over the past 5 years.

Federal Agricultural Mortgage's 1-year earnings growth is less than its 5-year average (14.5% vs 19.6%)

Federal Agricultural Mortgage's earnings growth has not exceeded the US Mortgage industry average in the past year (14.5% vs 32.9%).


Return on Equity

Federal Agricultural Mortgage has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Federal Agricultural Mortgage used its assets less efficiently than the US Mortgage industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Federal Agricultural Mortgage improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Federal Agricultural Mortgage's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Information is not available.

Information is not available.


Financial Institutions Analysis

Unable to establish if Federal Agricultural Mortgage has an acceptable proportion of non-loan assets without balance sheet data.

Unable to establish if Federal Agricultural Mortgage has a sufficient allowance for bad loans without relevant financial data.

Unable to establish if Federal Agricultural Mortgage's liabilities are primarily made up of low risk funding sources without deposits or liabilities data.

Federal Agricultural Mortgage's level of assets compared to its equity is very high (i.e. bank has borrowed heavily to fund lending).

Federal Agricultural Mortgage reports no customer deposits, loans are made up entirely of borrowed funds.

Unable to establish if Federal Agricultural Mortgage has an acceptable level of bad loans without bad loans data.


Next Steps

Dividend

What is Federal Agricultural Mortgage's current dividend yield, its reliability and sustainability?

3.66%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Federal Agricultural Mortgage before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Federal Agricultural Mortgage's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Federal Agricultural Mortgage's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.5x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Federal Agricultural Mortgage's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Bradford Nordholm (63yo)

0.8yrs

Tenure

US$560,836

Compensation

Mr. Bradford T. Nordholm has been President and Chief Executive Officer of Federal Agricultural Mortgage Corporation since October 15, 2018. Prior to being appointed as an executive officer of Farmer Mac,  ...


CEO Compensation Analysis

Bradford's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Bradford to compare compensation growth.


Management Age and Tenure

1.3yrs

Average Tenure

55yo

Average Age

The average tenure for the Federal Agricultural Mortgage management team is less than 2 years, this suggests a new team.


Board Age and Tenure

10.0yrs

Average Tenure

64.5yo

Average Age

The average tenure for the Federal Agricultural Mortgage board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Steve Mullery (52yo)

    Executive VP

    • Tenure: 7.2yrs
    • Compensation: US$868.64k
  • Curt Covington (63yo)

    Executive VP & Chief Credit Officer

    • Tenure: 1.6yrs
    • Compensation: US$890.24k
  • Brian Brinch (42yo)

    Senior Vice President of Rural Infrastructure

    • Tenure: 1.3yrs
    • Compensation: US$475.71k
  • Bradford Nordholm (63yo)

    President & CEO

    • Tenure: 0.8yrs
    • Compensation: US$560.84k
  • Jalpa Nazareth

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Mario Morais

    Vice President of Operations & Technology

    • Tenure: 1.3yrs
  • Megan Murray-Pelaez

    Director of Marketing & Communications

    • Tenure: 1.4yrs
  • Grace Wu Plaza

    Director of Compliance & Corporate Integrity

    • Tenure: 1.3yrs
  • Kerry Willie

    Vice President of Human Capital

    • Tenure: 1.2yrs
  • Gregory Ramsey (55yo)

    VP, Controller

    • Tenure: 0.1yrs

Board Members

  • Mitchell Johnson (77yo)

    Director

    • Tenure: 22.2yrs
    • Compensation: US$118.46k
  • Lowell Junkins (75yo)

    Chairman

    • Tenure: 10.9yrs
    • Compensation: US$1.16m
  • Dennis Brack (66yo)

    Director

    • Tenure: 18.2yrs
    • Compensation: US$124.28k
  • Sara Faivre-Davis (54yo)

    Director

    • Tenure: 8.9yrs
    • Compensation: US$118.46k
  • Clark Maxwell (47yo)

    Director

    • Tenure: 11.2yrs
    • Compensation: US$118.46k
  • James Engebretsen (63yo)

    Director

    • Tenure: 11.2yrs
    • Compensation: US$118.46k
  • Dick Davidson (74yo)

    Director

    • Tenure: 9.2yrs
    • Compensation: US$128.46k
  • Myles Watts (68yo)

    Vice Chairman of the Board

    • Tenure: 7.3yrs
    • Compensation: US$138.46k
  • Chester Culver (53yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$118.46k
  • Bruce Sherrick (56yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$130.46k

Company Information

Federal Agricultural Mortgage Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Federal Agricultural Mortgage Corporation
  • Ticker: AGM.PRD
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$845.666m
  • Shares outstanding: 10.70m
  • Website: https://www.farmermac.com

Number of Employees


Location

  • Federal Agricultural Mortgage Corporation
  • 1999 K Street, NW
  • 4th Floor
  • Washington
  • District Of Columbia
  • 20006
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGM.ANYSE (New York Stock Exchange)Class A Common StockUSUSDDec 1993
AGMNYSE (New York Stock Exchange)YesClass C Common StockUSUSDJan 1994
A35DB (Deutsche Boerse AG)YesClass C Common StockDEEURJan 1994
AGM.PRANYSE (New York Stock Exchange)PFD A 5.875%NONUSUSDJan 2013
AGM.PRCNYSE (New York Stock Exchange)PFD C FIX TO FLTUSUSDJun 2014
AGM.PRDNYSE (New York Stock Exchange)5.7% NCUM PFD DUSUSDMay 2019

Biography

Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through four segments: Farm & Ranch, USDA Guarantees, Rural Utili ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 01:13
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.