Stock Analysis Report

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Federal Agricultural Mortgage

Executive Summary

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

Snowflake Analysis

Established dividend payer and good 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's share price has been volatile over the past 3 months.

Market Performance

7 Day Return




US Mortgage


US Market

1 Year Return




US Mortgage


US Market

Return vs Industry: AGM exceeded the US Mortgage industry which returned -20.1% over the past year.

Return vs Market: AGM underperformed the US Market which returned 9.2% over the past year.

Shareholder returns

7 Day4.2%0.7%2.4%
30 Day12.2%8.7%10.2%
90 Day-6.0%-19.8%3.4%
1 Year1.0%-3.1%-18.0%-20.1%11.6%9.2%
3 Year15.8%5.1%6.3%-1.4%33.7%24.9%
5 Year150.4%116.8%4.7%-6.6%59.7%41.8%

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


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


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AGM ($68.23) is trading below our estimate of fair value ($82.05)

Significantly Below Fair Value: AGM is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: AGM is good value based on its PE Ratio (9x) compared to the Mortgage industry average (11.2x).

PE vs Market: AGM is good value based on its PE Ratio (9x) compared to the US market (16.1x).

Price to Earnings Growth Ratio

PEG Ratio: AGM is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: AGM is overvalued based on its PB Ratio (1.6x) compared to the US Mortgage industry average (0.8x).

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?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGM's forecast earnings growth (14.4% per year) is above the savings rate (2.2%).

Earnings vs Market: AGM's earnings (14.4% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: AGM's revenue (10.1% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: AGM's revenue (10.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if AGM's Return on Equity is forecast to be high in 3 years time

Next Steps

Past Performance

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


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AGM has high quality earnings.

Growing Profit Margin: AGM's current net profit margins (45.9%) are lower than last year (50.8%).

Past Earnings Growth Analysis

Earnings Trend: AGM's earnings have grown by 16.9% 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 (-13.9%) over the past year, making it difficult to compare to the Mortgage industry average (4.5%).

Return on Equity

High ROE: AGM's Return on Equity (14%) is considered low.

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

Financial Institutions Analysis

Asset Level: AGM's Assets to Equity ratio (33.4x) 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.

Next Steps


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


Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: AGM's dividend (4.69%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: AGM's dividend (4.69%) is in the top 25% of dividend payers in the US market (4.39%)

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 (38.2%), AGM's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Next Steps


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


Average management tenure


Brad Nordholm (62yo)





Mr. Bradford T. Nordholm, also known as Brad, has been President and Chief Executive Officer of Federal Agricultural Mortgage Corporation since October 15, 2018. He served as the Senior Manager Director an ...

CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD2.70M) is about average for companies of similar size in the US market ($USD3.13M).

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

Bradford Nordholm
President & CEO1.67yrsUS$2.70m0.062% $449.3k
Gregory Ramsey
VP, Controller & Principal Accounting Officer6.67yrsUS$514.60k0.014% $104.9k
Stephen Mullery
Executive VP8yrsUS$1.02m0.14% $1.0m
Zachary Carpenter
Executive VP & Chief Business Officer1.08yrsUS$802.35k0.0032% $23.5k
Aparna Ramesh
Executive VP0.42yrno data0.019% $136.9k
Mario Morais
Vice President of Operations & Technology2.17yrsno datano data
Jalpa Nazareth
Director of Investor Relations & Finance Strategyno datano datano data
Megan Murray-Pelaez
Director of Marketing & Communications2.25yrsno datano data
Kerry Willie
Vice President of Human Capital2yrsno datano data
Brian Brinch
Senior Vice President of Rural Infrastructure2.17yrsUS$475.71k0.071% $517.5k


Average Tenure


Average Age

Experienced Management: AGM's management team is considered experienced (2.2 years average tenure).

Board Members

William Hemingway
Independent Director0.083yrno data0.00014% $1.0k
Mitchell Johnson
Independent Director23yrsUS$122.02k0.099% $717.2k
Lowell Junkins
Independent Vice Chairman0.42yrUS$162.02k0.066% $477.0k
Dennis Brack
Independent Director19yrsUS$122.02k0.067% $488.3k
Sara Faivre-Davis
Independent Director9.75yrsUS$122.02k0.042% $303.1k
James Engebretsen
Independent Director12yrsUS$122.02k0.051% $369.9k
Richard Davidson
Independent Director10yrsUS$132.02k0.10% $744.2k
Myles Watts
Independent Director9.75yrsUS$142.02k0.12% $902.7k
Bruce Sherrick
Independent Director8.17yrsUS$134.02k0.11% $817.6k
LaJuana Wilcher
Independent Chairman0.42yrUS$15.58k0.0015% $10.6k


Average Tenure


Average Age

Experienced Board: AGM's board of directors are considered experienced (9.8 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: AGM 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$726.136m
  • Shares outstanding: 10.73m
  • Website: https://www.farmermac.com

Number of Employees


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


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
FAMC.POTCPK (Pink Sheets LLC)5.750 NCUM PFD EUSUSDMay 2020


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 and rural development 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 and other financial institutions 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 11:45
End of Day Share Price2020/06/03 00:00
Annual Earnings2019/12/31

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.