Next up:
AGM aka “Farmer Mac”
Federal Agricultural Mortgage Corp. is a stockholder-owned, federally chartered corporation, which engages in the provision of a secondary market for a variety of loans made to borrowers in rural America. For company profile details see footnote.[1]
There is no FG Score available for this company.
Historical earnings graph, price chart, etc:
Steadily growing earnings since post the Global Financial Crisis, raised their dividend for 14 years with a dividend CAGR of around 25% (!).
It’s a little high on debt, but since it’s federally chartered, there is an implicit guarantee that the government wouldn’t let it fail.
It also hits or beats analysts’ earnings expectations 100% of the time.[2]
Forward looking earnings chart:
It’s fairly cheap, but its normal valuation has only been about 11 x P/E. If price returns to that normal valuation, I’d be looking at a 20% CAGR (total return). If it somehow returns to its fair multiple of 15 x P/E, I’d be garnering a fat 40% CAGR (total return) … one can always dream.
AGM is a buy in my book. I’ll add opportunistically when I have cash and when it dips.
1 Company profile:
Company description:
Federal Agricultural Mortgage Corp. is a stockholder-owned, federally chartered corporation, which engages in the provision of a secondary market for a variety of loans made to borrowers in rural America. It operates through the following segments: Farm and Ranch, Corporate AgFinance, Power and Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments. The Farm and Ranch segments includes the USDA Securities portfolio, Farm and Ranch loans, and AgVantage securities. The Corporate AgFinance segment focuses on loans and AgVantage securities to larger and more complex farming operations, agribusinesses focused on food and fiber processing, and other supply chain production. The Power and Utilities segment refers to the loans to rural electric generation and transmission cooperatives, and distribution cooperatives. The Broadband Infrastructure segment represents the loans to rural fiber, cable and broadband, tower, wireless, local exchange carrier, and data center projects. The Renewable Energy segment is involved in the rural electric solar, wind, and gas projects. The Funding segment consists of debt issuance, hedging, asset and liability management, and capital allocation strategies. The Investments segment provides a financial result of the investment portfolio, which is held for liquidity purposes. The company was founded in 1987 and is headquartered in Washington, DC.
GICS Information:
Financials>Financial Services>Financial Services>Commercial & Residential Mortgage Finance
Company website:
2 Analyst scorecard:
