Federal Agricultural Mortgage Corporation (AGM)

Federal Agricultural Mortgage Corporation (AGM) Financial Services Profile

Federal Agricultural Mortgage Corporation (Farmer Mac) enhances the availability of credit to agricultural and rural communities by providing a secondary market for agricultural loans and guarantees. Operating through Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit segments, Farmer Mac supports the agricultural sector's financial stability.

What Is the Investment Thesis for AGM?

Farmer Mac presents a stable investment opportunity within the agricultural finance sector. With a P/E ratio of 10.6 and a dividend yield of 3.37%, the company demonstrates financial stability and shareholder returns. Its diversified business segments, including Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit, mitigate risk and provide multiple avenues for growth. The company's role in supporting rural infrastructure and agricultural lending positions it favorably amid increasing demand for agricultural credit. Ongoing: The company's consistent profitability, reflected in a 16.9% profit margin, supports its ability to sustain dividends and reinvest in growth initiatives. However, potential shifts in agricultural policy and interest rate fluctuations pose potential risks.

Based on FMP financials and quantitative analysis

AGM Key Highlights

• Market capitalization of $2.19B, indicating a substantial presence in the agricultural finance market.
• P/E ratio of 10.6, suggesting the company is reasonably valued compared to its earnings.
• Dividend yield of 3.37%, offering an attractive income stream for investors.
• Profit margin of 16.9%, reflecting efficient operations and profitability.
• Beta of 0.97, indicating the stock's volatility is slightly less than the overall market.

Who Are AGM's Competitors?

AGM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are AGM's Key Strengths?

• Government-sponsored enterprise status.
• Diversified business segments.
• Strong relationships with agricultural lenders.
• Expertise in agricultural finance.

What Are AGM's Weaknesses?

• Exposure to agricultural market risks.
• Reliance on government policies and regulations.
• Sensitivity to interest rate fluctuations.
• Potential for credit losses on guaranteed loans.

What Could Drive AGM Stock Higher?

• Potential changes in agricultural policy could create new opportunities for Farmer Mac.
• Increasing demand for agricultural credit due to rising farm costs.
• Government initiatives to support rural infrastructure development.
• Expansion of Farmer Mac's partnerships with agricultural lenders.

What Are the Key Risks for AGM?

• Financial-distress signal — its Altman Z-Score of -0.16 sits in the distress zone (elevated bankruptcy risk).
• Insider selling — insiders were net sellers of roughly $1.2M recently.
• Economic downturns in the agricultural sector could lead to increased credit losses.
• Changes in government policies could negatively impact Farmer Mac's business.
• Fluctuations in interest rates could affect Farmer Mac's profitability.
• Competition from private lenders could erode Farmer Mac's market share.

What Are the Growth Opportunities for AGM?

• Expansion of USDA Guarantees Segment: The increasing demand for rural development and agricultural loans guaranteed by the USDA presents a significant growth opportunity for Farmer Mac. By expanding its activities in this segment, Farmer Mac can leverage government support to increase its loan portfolio and generate higher revenues. This expansion aligns with the ongoing government initiatives to support rural communities and infrastructure, creating a favorable environment for Farmer Mac's growth. Timeline: Ongoing.
• Increased Focus on Rural Utilities: With the growing need for infrastructure improvements in rural areas, Farmer Mac can capitalize on the demand for loans related to electric and telecommunications facilities. By offering guarantees and purchasing securities backed by these loans, Farmer Mac can tap into a market driven by essential services and infrastructure upgrades. This segment offers long-term growth potential as rural communities continue to modernize their infrastructure. Timeline: Ongoing.
• Strategic Partnerships with Agricultural Lenders: Forming strategic partnerships with local and regional agricultural lenders can enhance Farmer Mac's market reach and access to loan origination. By collaborating with these lenders, Farmer Mac can streamline the loan purchasing process and expand its portfolio of eligible mortgage loans. These partnerships can also provide Farmer Mac with valuable insights into local market conditions and borrower needs. Timeline: Ongoing.
• Technological Innovation in Loan Management: Investing in technology to improve loan origination, servicing, and risk management can enhance Farmer Mac's operational efficiency and reduce costs. By implementing advanced data analytics and automation tools, Farmer Mac can streamline its processes and improve its ability to assess and manage risk. This technological innovation can also enhance the customer experience for both lenders and borrowers. Timeline: Ongoing.
• Development of New Financial Products: Farmer Mac can develop new financial products tailored to the specific needs of agricultural borrowers and lenders. By offering innovative solutions such as specialized loan programs or risk management tools, Farmer Mac can attract new customers and increase its market share. These new products can address emerging challenges in the agricultural sector and provide value-added services to Farmer Mac's clients. Timeline: Ongoing.

What Opportunities Does AGM Have?

• Expansion of USDA Guarantees segment.
• Increased focus on rural utilities.
• Strategic partnerships with agricultural lenders.
• Technological innovation in loan management.

What Threats Does AGM Face?

• Changes in government policies and regulations.
• Economic downturns in the agricultural sector.
• Increased competition from private lenders.
• Rising interest rates.

What Are AGM's Competitive Advantages?

• Government-sponsored enterprise (GSE) status provides access to favorable funding and regulatory treatment.
• Specialized expertise in agricultural finance and risk management.
• Established relationships with agricultural lenders and government agencies.
• Diversified business segments mitigate risk and provide multiple revenue streams.

What Does AGM Do?

Federal Agricultural Mortgage Corporation (Farmer Mac), established in 1987 and headquartered in Washington, D.C., plays a crucial role in the U.S. agricultural finance landscape. It operates as a secondary market for agricultural loans, ensuring that lenders have the capital to support farmers and rural communities. Farmer Mac's operations are divided into four key segments: Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit. The Farm & Ranch segment focuses on purchasing and securitizing agricultural real estate mortgage loans, offering long-term standby purchase commitments (LTSPC). The USDA Guarantees segment deals with agricultural and rural development loans guaranteed by the USDA. The Rural Utilities segment supports loans for electric and telecommunications facilities in rural areas. The Institutional Credit segment provides guarantees and purchases general obligations secured by eligible loan pools. By providing liquidity and risk management tools, Farmer Mac facilitates a stable and efficient agricultural credit market, benefiting both lenders and borrowers across the nation.

What Products and Services Does AGM Offer?

• Provides a secondary market for agricultural loans.
• Purchases and retains eligible mortgage loans secured by agricultural real estate.
• Securitizes eligible mortgage loans and guarantees timely payment of principal and interest.
• Issues long-term standby purchase commitments (LTSPC) on eligible mortgage loans.
• Purchases portions of agricultural and rural development loans guaranteed by the USDA.
• Purchases and guarantees securities backed by loans for rural electric and telecommunications facilities.
• Guarantees and purchases general obligations of lenders secured by eligible loan pools.

How Does AGM Make Money?

• Generates revenue through the purchase and securitization of agricultural loans.
• Earns fees from guaranteeing the timely payment of principal and interest on securities.
• Receives interest income from retained mortgage loans.
• Profits from the spread between the interest earned on assets and the interest paid on liabilities.

What Industry Does AGM Operate In?

Farmer Mac operates within the financial services sector, specifically in credit services for the agricultural industry. The market is influenced by factors such as commodity prices, interest rates, and government policies related to agriculture and rural development. The agricultural credit market is essential for supporting farming operations and rural infrastructure. Farmer Mac plays a key role in providing liquidity and stability to this market by purchasing and guaranteeing agricultural loans. Competition includes other government-sponsored enterprises and private lenders, but Farmer Mac's unique focus on agriculture and its relationship with the USDA provide a competitive advantage.

Who Are AGM's Key Customers?

• Agricultural lenders, including banks, credit unions, and other financial institutions.
• Rural electric and telecommunications cooperatives.
• Borrowers in the agricultural sector, including farmers, ranchers, and rural businesses.

Federal Agricultural Mortgage Corporation Financial Trajectory

Federal Agricultural Mortgage Corporation (AGM) reported $423.7M in revenue for Q1 2026, reflecting 292.7% growth compared to the prior quarter. The company recorded net income of $59.1M, with diluted EPS of $4.75. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Financial Services. Across the four most recent quarters, AGM averaged $4.35 in diluted EPS.

Company Profile

Federal Agricultural Mortgage Corporation operates in the Financial - Credit Services industry within the Financial Services sector. It is headquartered in Washington, US. The company is led by CEO Bradford Todd Nordholm. AGM has traded publicly since 1994.

How Federal Agricultural Mortgage Corporation Is Valued

Federal Agricultural Mortgage Corporation carries a market capitalization of $2.19B, placing it in the mid-cap category. Relative to its peer group, AGM's quantitative score of 58/100 is roughly in line with the peer average of 66/100.

ROE 13%Key Financial Metrics

Return on equity for Federal Agricultural Mortgage Corporation stands at 13.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.6%, showing how much profit it generates from its asset base. AGM trades at a trailing price-to-earnings ratio of 10.58, below the Financial Services sector average of ~18x. Its free cash flow yield is 11.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.21 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 9.4%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 5/9Financial Health

Federal Agricultural Mortgage Corporation's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -0.16 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Federal Agricultural Mortgage Corporation revenue of about $460.4M for fiscal 2026, with EPS near $19.52.

Net buyingInsider Activity

Over the past six months, Federal Agricultural Mortgage Corporation insiders filed 27 SEC Form 4 transactions — 4 sales and 23 purchases. On net that is roughly 7K shares acquired (about $1.2M) — insiders putting money in tends to read as conviction.

AGM Financials

AGM Latest News

AGM Analyst Consensus

AGM MoonshotScore

Federal Agricultural Mortgage Corporation Financial Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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