Federal Agricultural Mortgage Corporation (AGM)
Valuation Overview•Is Federal Agricultural Mortgage Corporation Overvalued or Undervalued?
Commands a peer premium multiple, but this multiple is justified by a strong intrinsic cash flow value.
Fragile underlying quality score of 31/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
AGM demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 14.3%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $416.0M | -18.9% | — | — | +16.6% | |
| EBITDA | $0.00 | — | +4.3% | — | — | |
| Net Income | $51.8M | +0.1% | +5.2% | — | +11.7% | |
| EPS (Diluted) | $4.01 | +1.1% | +6.2% | +15.0% | +14.8% | |
| Free Cash Flow | $92.1M | -86.8% | -53.8% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 21.9% | 25.5% | 34.5% | 36.2% |
| Operating Margin | 14.3% | 17.7% | 24.3% | 26.0% |
| Net Margin | 15.5% | 14.2% | 19.3% | 19.7% |
| FCF Margin | 16.4% | 23.3% | 54.9% | 39.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $4.52 | $4.74 | +4.9% | ||
| Q1'26 | $4.50 | $3.66 | -18.7% | ||
| Q4'25 | $4.43 | $4.52 | +2.0% | ||
| Q3'25 | $4.29 | $4.32 | +0.7% | ||
| Q2'25 | $4.00 | $4.19 | +4.8% | ||
| Q1'25 | $4.17 | $3.97 | -4.8% | ||
| Q4'24 | $4.11 | $4.10 | -0.2% | ||
| Q3'24 | $4.08 | $3.63 | -11.0% |
Total return is +0.6% (1Y), lagging the benchmark by -24.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +5.8% | -3.5% | — |
| 1Y | +0.6% | -24.4% | +3.3% |
| 3YCAGR | +11.0% | -8.6% | +11.6% |
| 5YCAGR | +16.4% | +3.0% | +25.4% |
| 10YCAGR | +20.2% | +6.6% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Federal Agricultural Mortgage Corporation (AGM) valuation, health, and returns.
Federal Agricultural Mortgage Corporation is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. undervalued (implying +32.7% upside to DCF intrinsic value of $243.49)
Federal Agricultural Mortgage Corporation has multiple valuation anchors: DCF Intrinsic Value: $243.49 | Peer Relative Fair Value: $101.69 | Wall Street Analyst Target: $233.00 (implying +27.0% upside). A convergence of these signals offers higher conviction.
Federal Agricultural Mortgage Corporation displays weak financial health with a composite quality score of 31/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 0.6%.
Federal Agricultural Mortgage Corporation pays a 4.4% dividend yield, covered by a 43% payout ratio with 14 years of growth, supplemented by a 0.0% buyback yield.
Federal Agricultural Mortgage Corporation's current growth trajectory is Decelerating. The company achieved -18.9% 1Y revenue growth and +1.1% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 5 analysts, beating EPS expectations in 58% of recent quarters with a 1-quarter streak. The consensus price target represents a +27.0% change from current levels.
Investment risks for Federal Agricultural Mortgage Corporation include: -33.7% 1-year max drawdown. Volatility risk is characterized by a beta of 0.63x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.