Over the past three months, Federal Agricultural Mortgage Corp (AGM.A, Financial) has experienced a notable uptick in its stock price, with an 11.57% increase, bringing the current market price to $157. This performance has maintained the company's market capitalization at $2.01 billion. Despite the absence of movement over the past week, the stock's quarterly surge is significant. The GF Value, which stands at $143.65, has also seen an increase from the past GF Value of $137.21. According to GuruFocus, the current and past GF Valuations indicate that Federal Agricultural Mortgage Corp is fairly valued.
Introduction to Federal Agricultural Mortgage Corp
Operating within the credit services industry, Federal Agricultural Mortgage Corp, also known as Farmer Mac, is a vital institution that supports U.S. agricultural and rural borrowers. The company specializes in purchasing eligible mortgage loans secured by first liens on agricultural real estate and rural housing. With a diverse portfolio that includes Farm & Ranch, Corporate AgFinance, and Renewable Energy, among others, Farmer Mac plays a crucial role in ensuring the flow of capital in rural areas. Its subsidiary also acquires portions of loans guaranteed by the USDA, further solidifying its position in the market.
Assessing Profitability
Farmer Mac's Profitability Rank is a solid 6/10, reflecting a stable financial condition. The company's Return on Equity (ROE) is an impressive 14.91%, outperforming 76.79% of its peers in the industry. Its Return on Assets (ROA) stands at 0.71%, which is also better than 36.72% of the competition. Notably, Farmer Mac has maintained profitability for the past 10 years, a feat better than 99.81% of its industry counterparts, showcasing its consistent performance and financial resilience.
Growth Prospects of Federal Agricultural Mortgage Corp
The company's Growth Rank is at the maximum of 10/10, indicating exceptional growth potential. The 3-Year Revenue Growth Rate per Share is at 18.80%, surpassing 73.27% of the industry. Similarly, the 5-Year Revenue Growth Rate per Share is 14.10%, which is better than 73.85% of industry players. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 10.47%, outperforming 65.62% of the industry. The 3-Year EPS without NRI Growth Rate mirrors the revenue growth at 18.80%, which is better than 64.72% of the industry, while the 5-Year EPS without NRI Growth Rate is at 13.40%, surpassing 68.03% of competitors. These figures underscore Farmer Mac's robust growth trajectory and its potential for future expansion.
Competitive Landscape
In comparison to its competitors, Federal Agricultural Mortgage Corp holds a strong position with a market cap of $2.01 billion. Navient Corp (NAVI, Financial) follows closely with a market cap of $1.91 billion, while Bread Financial Holdings Inc (BFH, Financial) and Enova International Inc (ENVA, Financial) have market caps of $1.76 billion and $1.74 billion, respectively. This competitive standing reflects Farmer Mac's significant role in the credit services industry and its ability to maintain a leading position among its peers.
Conclusion
In summary, Federal Agricultural Mortgage Corp's stock performance over the past quarter has been impressive, with an 11.57% increase in its stock price. The company's strong profitability metrics, such as its ROE and ROA, coupled with a decade of consistent profitability, position it well within the credit services industry. Furthermore, its exceptional Growth Rank and revenue growth rates indicate a promising future. When considering the competitive landscape, Farmer Mac's market cap demonstrates its significant presence and potential for continued success. Investors should keep an eye on this company as it continues to support the agricultural and rural sectors of the U.S. economy.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
