Federal Agricultural Mortgage
Market Cap
US$766.6m
Last Updated
2020/02/24 00:57 UTC
Data Sources
Company Financials +
Executive Summary
Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States.
Rewards
Risk Analysis
No risks detected for AGM from our risk checks.
Snowflake Analysis
6 star dividend payer and undervalued.
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
Stable Share Price: AGM has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.4%
AGM
-1.0%
US Mortgage
-1.1%
US Market
1 Year Return
-11.2%
AGM
5.8%
US Mortgage
17.8%
US Market
Return vs Industry: AGM underperformed the US Mortgage industry which returned 5.8% over the past year.
Return vs Market: AGM underperformed the US Market which returned 17.8% over the past year.
Shareholder returns
| AGM | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.4% | -1.0% | -1.1% |
| 30 Day | -11.2% | -1.2% | 1.5% |
| 90 Day | -12.8% | -3.2% | 6.6% |
| 1 Year | -8.0%-11.2% | 8.3%5.8% | 20.2%17.8% |
| 3 Year | 32.7%21.5% | 18.4%10.0% | 47.5%38.1% |
| 5 Year | 154.2%122.2% | 57.0%39.7% | 71.2%52.4% |
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
2 weeks ago | Simply Wall St
If You Had Bought Federal Agricultural Mortgage (NYSE:AGM) Shares Five Years Ago You'd Have Made 124%1 month ago | Simply Wall St
Does Federal Agricultural Mortgage Corporation (NYSE:AGM) Have A High Beta?1 month ago | Simply Wall St
Are You An Income Investor? Don't Miss Out On Federal Agricultural Mortgage Corporation (NYSE:AGM)Valuation
Is Federal Agricultural Mortgage undervalued compared to its fair value and its price relative to the market?
25.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AGM ($71.98) is trading below our estimate of fair value ($95.99)
Significantly Below Fair Value: AGM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AGM is good value based on its PE Ratio (9.1x) compared to the Mortgage industry average (13.6x).
PE vs Market: AGM is good value based on its PE Ratio (9.1x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: AGM is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: AGM is overvalued based on its PB Ratio (1.5x) compared to the US Mortgage industry average (1.1x).
Next Steps
Future Growth
How is Federal Agricultural Mortgage forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
10.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AGM's forecast earnings growth (10.1% per year) is above the savings rate (1.7%).
Earnings vs Market: AGM's earnings (10.1% per year) are forecast to grow slower than the US market (14.1% per year).
High Growth Earnings: AGM's earnings are forecast to grow, but not significantly.
Revenue vs Market: AGM's revenue (7.8% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: AGM's revenue (7.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AGM's Return on Equity is forecast to be low in 3 years time (14.7%).
Next Steps
Past Performance
How has Federal Agricultural Mortgage performed over the past 5 years?
19.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AGM has high quality earnings.
Growing Profit Margin: AGM's current net profit margins (47.5%) are lower than last year (50%).
Past Earnings Growth Analysis
Earnings Trend: AGM's earnings have grown by 19.3% per year over the past 5 years.
Accelerating Growth: AGM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AGM had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Mortgage industry average (11.1%).
Return on Equity
High ROE: AGM's Return on Equity (13.3%) is considered low.
Return on Assets
Return on Capital Employed
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
Inventory Level: AGM has a low level of unsold assets or inventory.
Debt Coverage by Assets: AGM's debt is not covered by short term assets (assets are 0.4x debt).
Financial Institutions Analysis
Asset Level: AGM's level of assets compared to its equity is very high.
Allowance for Bad Loans: Insufficient data to determine if AGM has a sufficient allowance for bad loans.
Low Risk Liabilities: AGM reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if AGM has an acceptable proportion of non-loan assets held.
Low Risk Deposits: AGM has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if AGM has an appropriate level of bad loans.
Next Steps
Dividend
What is Federal Agricultural Mortgage's current dividend yield, its reliability and sustainability?
3.89%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AGM's dividend (3.89%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: AGM's dividend (3.89%) is in the top 25% of dividend payers in the US market (3.73%)
Stability and Growth of Payments
Stable Dividend: AGM's dividends per share have been stable in the past 10 years.
Growing Dividend: AGM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34%), AGM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AGM's dividends in 3 years are forecast to be well covered by earnings (34% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Brad Nordholm (62yo)
1.3yrs
Tenure
US$560,836
Compensation
Mr. Bradford T. Nordholm also known as Brad has been President and Chief Executive Officer of Federal Agricultural Mortgage Corporation since October 15, 2018. Prior to being appointed as an executive offi ...
CEO Compensation Analysis
Compensation vs Market: Brad's total compensation ($USD560.84K) is below average for companies of similar size in the US market ($USD2.51M).
Compensation vs Earnings: Insufficient data to compare Brad's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 1.3yrs | US$560.84k | no data | |
| Executive VP | 7.7yrs | US$868.64k | 0.15% $1.1m | |
| Senior Vice President of Rural Infrastructure | 1.8yrs | US$475.71k | 0.069% $528.0k | |
| Executive VP | 0.08yrs | no data | no data | |
| Vice President of Operations & Technology | 1.8yrs | no data | no data | |
| VP, Controller & Principal Accounting Officer | 6.3yrs | no data | no data | |
| Director of Investor Relations | 0yrs | no data | no data | |
| Director of Marketing & Communications | 1.9yrs | no data | no data | |
| Vice President of Human Capital | 1.7yrs | no data | no data | |
| Chief Economist | 1.1yrs | no data | no data |
1.8yrs
Average Tenure
52yo
Average Age
Experienced Management: AGM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 22.7yrs | US$118.46k | 0.096% $739.3k | |
| Vice Chairman | 0.08yrs | US$844.70k | 0.066% $503.1k | |
| Independent Director | 18.7yrs | US$124.28k | 0.061% $466.2k | |
| Independent Director | 9.4yrs | US$118.46k | 0.040% $306.2k | |
| Independent Director | 11.7yrs | US$118.46k | 0.26% $2.0m | |
| Independent Director | 11.7yrs | US$118.46k | 0.051% $391.1k | |
| Independent Director | 9.7yrs | US$128.46k | 0.096% $736.8k | |
| Director | 9.4yrs | US$138.46k | 0.12% $904.3k | |
| Independent Director | 7.8yrs | US$130.46k | 0.11% $826.5k | |
| Chairman | 0.08yrs | no data | 0.0015% $11.3k |
9.5yrs
Average Tenure
66yo
Average Age
Experienced Board: AGM's board of directors are considered experienced (9.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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
- Exchange: NYSE
- Founded: 1987
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: US$766.599m
- Shares outstanding: 10.71m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AGM.A | NYSE (New York Stock Exchange) | Class A Common Stock | US | USD | Dec 1993 | |
| AGM | NYSE (New York Stock Exchange) | Yes | Class C Common Stock | US | USD | Jan 1994 |
| A35 | DB (Deutsche Boerse AG) | Yes | Class C Common Stock | DE | EUR | Jan 1994 |
| AGM.PRA | NYSE (New York Stock Exchange) | PFD A 5.875%NON | US | USD | Jan 2013 | |
| AGM.PRC | NYSE (New York Stock Exchange) | PFD C FIX TO FLT | US | USD | Jun 2014 | |
| AGM.PRD | NYSE (New York Stock Exchange) | 5.7% NCUM PFD D | US | USD | May 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 Utilities, and Institutional Credit. The Farm & Ranch segment purchases and retains eligible mortgage loans that are secured by first liens on agricultural real estate; securitizes eligible mortgage loans, and guarantees the timely payment of principal and interest on securities representing interests in or obligations secured by pools of mortgage loans; and issues long-term standby purchase commitments (LTSPC) on designated eligible mortgage loans. The USDA Guarantees segment purchases portions of certain agricultural, rural development, business and industry, and community facilities loans guaranteed by the United States Department of Agriculture (USDA). The Rural Utilities segment purchases and guarantees securities that are backed by eligible rural utilities loans; and issues LTSPCs for pools of eligible rural utilities loans. The Institutional Credit segment engages in purchasing and guaranteeing general obligations of lenders that are secured by pools of loans eligible under the Farm & Ranch, USDA Guarantees, or Rural Utilities lines of business. Federal Agricultural Mortgage Corporation was founded in 1987 and is headquartered in Washington, District of Columbia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 00:57 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.