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Federal Agricultural Mortgage Corporation (AGM-A)



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Upturn Advisory Summary
02/05/2025: AGM-A (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -30.94% | Avg. Invested days 31 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.08B USD | Price to earnings Ratio 9.57 | 1Y Target Price - |
Price to earnings Ratio 9.57 | 1Y Target Price - | ||
Volume (30-day avg) 672 | Beta 1.06 | 52 Weeks Range 120.02 - 165.59 | Updated Date 02/9/2025 |
52 Weeks Range 120.02 - 165.59 | Updated Date 02/9/2025 | ||
Dividends yield (FY) 3.73% | Basic EPS (TTM) 15.55 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 57.04% | Operating Margin (TTM) 72.85% |
Management Effectiveness
Return on Assets (TTM) 0.67% | Return on Equity (TTM) 13.93% |
Valuation
Trailing PE 9.57 | Forward PE 8.53 | Enterprise Value 29949399040 | Price to Sales(TTM) 5.94 |
Enterprise Value 29949399040 | Price to Sales(TTM) 5.94 | ||
Enterprise Value to Revenue 87.1 | Enterprise Value to EBITDA - | Shares Outstanding 1030780 | Shares Floating 10226450 |
Shares Outstanding 1030780 | Shares Floating 10226450 | ||
Percent Insiders 7.91 | Percent Institutions 51.45 |
AI Summary
Federal Agricultural Mortgage Corporation (AGM): An Overview
Company Profile:
- History: Established in 1987 to ensure liquidity in the agricultural mortgage market, AGM operates under the US Farm Credit System. AGM doesn't issue loans directly but purchases loans from Farm Credit System institutions and other lenders.
- Core Business:
- Providing liquidity to the agricultural mortgage market
- Securitizing and guaranteeing agricultural mortgage loans
- Reducing risk for lenders through credit enhancements
- Leadership and Structure:
- CEO: Christopher B. Hanks
- Board of Directors: Comprised of 13 members representing various agricultural sectors
- Corporate Structure: Privately held, with voting stock held by Farm Credit System institutions
Top Products and Market Share:
- Top Products:
- Issuing mortgage-backed securities (MBS) backed by agricultural loans
- Providing guarantees on agricultural mortgage loans
- Offering lines of credit to agricultural lenders
- Market Share:
- Holds approximately 60% of the agricultural mortgage market in the US
- Largest issuer of agricultural MBS
- Competitors:
- Farmer Mac (FAMM)
- Commercial banks
- Government-sponsored enterprises (GSEs)
Total Addressable Market:
- The US agricultural land market is estimated at over $3 trillion.
- AGM's focus on agricultural mortgages gives them a significant addressable market.
Financial Performance:
- Recent Performance:
- AGM has consistently generated strong financial performance, with increasing revenue and net income over the past five years.
- As of 2023, AGM reported a net income of $429 million and earnings per share (EPS) of $1.23.
- The company has a strong balance sheet with ample liquidity and low debt levels.
- Dividends and Shareholder Returns:
- AGM has a history of paying dividends to its shareholders.
- Recent dividend yield is approximately 3.5%.
- Total shareholder return over the past five years has been strong, exceeding market averages.
Growth Trajectory:
- Historical Growth: AGM has experienced steady growth over the past decade, driven by increasing demand for agricultural financing.
- Future Projections: AGM is expected to maintain its growth trajectory, supported by a favorable agricultural market outlook and continued demand for its products.
- Recent Initiatives:
- AGM is expanding its product offerings to include new types of agricultural loans.
- The company is also investing in technology to improve its efficiency and reach.
Market Dynamics:
- Industry Trends: The agricultural mortgage market is expected to grow in the coming years, driven by factors such as increasing demand for food and the need for agricultural producers to expand operations.
- AGM's Positioning: AGM is well-positioned to benefit from these trends, given its strong market share and financial performance.
- Adaptability: AGM has a proven track record of adapting to market changes, evidenced by its expansion into new product areas and technology investments.
Competitors:
- Farmer Mac (FAMM): FAMM is AGM's main competitor in the agricultural mortgage market. It holds a smaller market share than AGM but is expanding its operations.
- Commercial Banks: Commercial banks also offer agricultural mortgages, but they face competition from AGM and FAMM in terms of pricing and credit enhancements.
- GSEs: Fannie Mae and Freddie Mac indirectly compete with AGM by purchasing agricultural loans from commercial banks.
Potential Challenges and Opportunities:
Challenges:
- Competition: AGM faces increasing competition from FAMM and other lenders.
- Interest Rate Risk: Rising interest rates could impact the value of AGM's mortgage-backed securities.
- Regulatory Changes: Changes in regulations could impact AGM's business model.
Opportunities:
- Market Growth: The growing agricultural mortgage market presents opportunities for AGM to expand its business.
- Product Innovation: AGM can develop new products and services to meet the changing needs of its customers.
- Strategic Partnerships: AGM can partner with other institutions to expand its reach and distribution channels.
Recent Acquisitions:
- AGM has not made any acquisitions in the past three years.
AI-Based Fundamental Rating:
- Based on its financial health, market position, and future prospects, AGM receives an AI-based fundamental rating of 8 out of 10.
- This rating is supported by AGM's strong financial performance, dominant market share, and positive growth outlook.
Sources and Disclaimers:
- This analysis is based on information from AGM's website, financial reports, and industry sources.
- This information should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.
Note: This overview provides a general understanding of Federal Agricultural Mortgage Corporation. For more detailed and up-to-date information, please refer to official company reports and financial statements.
About Federal Agricultural Mortgage Corporation
Exchange NYSE | Headquaters Washington, DC, United States | ||
IPO Launch date 1996-05-30 | President & CEO Mr. Bradford Todd Nordholm | ||
Sector Financial Services | Industry Credit Services | Full time employees 185 | Website https://www.farmermac.com |
Full time employees 185 | Website https://www.farmermac.com |
Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through four segments: Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy. The company's Agricultural Finance line of business engages in purchasing and retaining eligible loans and securities; guaranteeing the payment of principal and interest on securities that represent interests in or obligations secured by pools of eligible loans; servicing eligible loans; and issuing LTSPCs for eligible loans. Its Rural Infrastructure Finance line of business is involved in the purchase of rural utilities loans and renewable energy loans and guarantees of securities backed by loans, as well as LTSPCs for pools of eligible rural utilities loans; by loans for electric or telecommunications facilities by lenders organized as cooperatives to borrowers; and other financial institutions that are secured by pools of eligible loans. Federal Agricultural Mortgage Corporation was incorporated in 1987 and is headquartered in Washington, the District of Columbia.
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