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Federal Agricultural Mortgage

Market Cap

US$1.1b

Last Updated

2021/04/09 22:06 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. More Details


Snowflake Analysis

6 star dividend payer and fair value.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AGM's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.4%

AGM

0.07%

US Mortgage

1.6%

US Market


1 Year Return

58.9%

AGM

54.5%

US Mortgage

55.3%

US Market

Return vs Industry: AGM exceeded the US Mortgage industry which returned 54.5% over the past year.

Return vs Market: AGM exceeded the US Market which returned 55.3% over the past year.


Shareholder returns

AGMIndustryMarket
7 Day-1.4%0.07%1.6%
30 Day6.4%-4.5%4.1%
90 Day28.3%8.9%5.5%
1 Year66.0%58.9%59.2%54.5%58.1%55.3%
3 Year34.5%19.6%37.0%25.8%63.8%53.3%
5 Year214.8%167.2%84.2%58.1%120.2%95.7%

Long-Term 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

Valuation

Is Federal Agricultural Mortgage undervalued compared to its fair value and its price relative to the market?

12.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AGM ($100.26) is trading above our estimate of fair value ($99.72)

Significantly Below Fair Value: AGM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AGM is good value based on its PE Ratio (12.1x) compared to the US Mortgage industry average (13.8x).

PE vs Market: AGM is good value based on its PE Ratio (12.1x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: AGM is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: AGM is overvalued based on its PB Ratio (1.7x) compared to the US Mortgage industry average (1x).


Future Growth

How is Federal Agricultural Mortgage forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGM's forecast earnings growth (14.7% per year) is above the savings rate (2%).

Earnings vs Market: AGM's earnings (14.7% per year) are forecast to grow slower than the US market (18.7% per year).

High Growth Earnings: AGM's earnings are forecast to grow, but not significantly.

Revenue vs Market: AGM's revenue (11.4% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: AGM's revenue (11.4% 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 (15.1%).


Past Performance

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

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGM has high quality earnings.

Growing Profit Margin: AGM's current net profit margins (45.2%) are lower than last year (49.4%).


Past Earnings Growth Analysis

Earnings Trend: AGM's earnings have grown by 10.9% 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 (-4.6%) over the past year, making it difficult to compare to the Mortgage industry average (5.3%).


Return on Equity

High ROE: AGM's Return on Equity (10.9%) is considered low.


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


Financial Institutions Analysis

Asset Level: AGM's Assets to Equity ratio (24.5x) 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, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if AGM has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: AGM reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if AGM has an appropriate level of bad loans.


Dividend

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

3.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AGM's dividend (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: AGM's dividend (3.51%) is in the top 25% of dividend payers in the US market (3.5%)


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 (38.5%), 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 (34.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Brad Nordholm (63 yo)

2.5yrs

Tenure

US$2,700,339

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 and joined company in October 2018. He serve...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD2.70M) is about average for companies of similar size in the US market ($USD2.18M).

Compensation vs Earnings: Brad's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: AGM's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: AGM's board of directors are considered experienced (6.8 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$1.062b
  • Shares outstanding: 10.74m
  • 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


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 (United States Departme...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/09 22:06
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.