NYSE:AGM

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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. More Details


Snowflake Analysis

6 star 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AGM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

AGM

-0.06%

US Mortgage

2.8%

US Market


1 Year Return

-17.0%

AGM

-10.6%

US Mortgage

20.9%

US Market

Return vs Industry: AGM underperformed the US Mortgage industry which returned -10.6% over the past year.

Return vs Market: AGM underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

AGMIndustryMarket
7 Day1.9%-0.06%2.8%
30 Day6.4%7.6%11.1%
90 Day-0.5%-8.5%6.5%
1 Year-13.0%-17.0%-7.8%-10.6%23.6%20.9%
3 Year2.3%-8.3%12.7%3.6%47.3%37.6%
5 Year158.4%120.8%36.0%17.6%94.3%72.9%

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?

13.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGM ($68.94) is trading below our estimate of fair value ($79.84)

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 (8.3x) compared to the US Mortgage industry average (12.3x).

PE vs Market: AGM is good value based on its PE Ratio (8.3x) compared to the US market (19.7x).


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 (1.3x) compared to the US Mortgage industry average (0.9x).


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?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGM's forecast earnings growth (10.5% per year) is above the savings rate (2.2%).

Earnings vs Market: AGM's earnings (10.5% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: AGM's revenue (8.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: AGM's revenue (8.2% 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 (14.5%).


Next Steps

Past Performance

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

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGM has high quality earnings.

Growing Profit Margin: AGM's current net profit margins (46.7%) are lower than last year (47.5%).


Past Earnings Growth Analysis

Earnings Trend: AGM's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: AGM's earnings growth over the past year (5.4%) is below its 5-year average (13.1% per year).

Earnings vs Industry: AGM earnings growth over the past year (5.4%) exceeded the Mortgage industry 4.6%.


Return on Equity

High ROE: AGM's Return on Equity (11.4%) is considered low.


Next Steps

  • Explore strong past performing companies in the Banks industry.

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 (25.8x) 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

Dividend

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

4.64%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AGM's dividend (4.64%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: AGM's dividend (4.64%) is in the top 25% of dividend payers in the US market (4.08%)


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 (37.4%), 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 (35.6% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Brad Nordholm (63 yo)

2.08yrs

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. He served as the Senior Manager Director an...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD2.70M) is about average for companies of similar size in the US market ($USD2.56M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bradford Nordholm
President & CEO2.08yrsUS$2.70m0.062%
$ 452.5k
Gregory Ramsey
VP, Controller & Principal Accounting Officer7.08yrsUS$514.60k0.014%
$ 105.6k
Stephen Mullery
Executive VP8.42yrsUS$1.02m0.14%
$ 1.0m
Zachary Carpenter
Executive VP & Chief Business Officer1.5yrsUS$802.35k0.0032%
$ 23.7k
Aparna Ramesh
Executive VP0.83yrno data0.019%
$ 137.8k
Mario Morais
Vice President of Operations & Technology2.58yrsno datano data
Jalpa Nazareth
Director of Investor Relations & Finance Strategyno datano datano data
Megan Murray-Pelaez
Director of Marketing & Communications2.67yrsno datano data
Kerry Willie
Vice President of Human Capital2.42yrsno datano data
Brian Brinch
Senior Vice President of Rural Infrastructure2.58yrsUS$475.71k0.071%
$ 521.3k
Jackson Takach
Chief Economist1.83yrsno datano data
Gregory Ramsay
VP & Controller7.08yrsno data0.026%
$ 190.6k

2.6yrs

Average Tenure

53yo

Average Age

Experienced Management: AGM's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mitchell Johnson
Independent Director23.42yrsUS$122.02k0.099%
$ 722.4k
Lowell Junkins
Independent Vice Chairman0.83yrUS$162.02k0.066%
$ 482.5k
Todd Ware
Independent Director1.5yrsUS$80.64k0.0050%
$ 37.0k
Dennis Brack
Independent Director19.42yrsUS$122.02k0.067%
$ 491.8k
Sara Faivre-Davis
Independent Director10.17yrsUS$122.02k0.042%
$ 308.4k
Everett Dobrinski
Independent Director1.5yrsUS$80.64k0.022%
$ 163.0k
Robert Sexton
Independent Director2.5yrsUS$121.32k0.055%
$ 404.3k
James Engebretsen
Independent Director12.42yrsUS$122.02k0.051%
$ 372.5k
Richard Davidson
Independent Director10.42yrsUS$132.02k0.10%
$ 749.5k
Myles Watts
Independent Director10.17yrsUS$142.02k0.12%
$ 876.9k
Bruce Sherrick
Independent Director8.58yrsUS$134.02k0.11%
$ 827.2k
LaJuana Wilcher
Independent Chairman0.83yrUS$15.58k0.0015%
$ 10.7k

9.4yrs

Average Tenure

66yo

Average Age

Experienced Board: AGM's board of directors are considered experienced (9.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AGM insiders have only sold shares 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$731.811m
  • 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

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.PRCNYSE (New York Stock Exchange)PFD C FIX TO FLTUSUSDJun 2014
AGM.PRDNYSE (New York Stock Exchange)5.7% NCUM PFD DUSUSDMay 2019
AGM.PRENYSE (New York Stock Exchange)5.750 NCUM PFD EUSUSDMay 2020
AGM.PRFNYSE (New York Stock Exchange)5.25 NCUM PFD FUSUSDAug 2020

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 Analysis2020/11/28 23:06
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.