Federal Agricultural Mortgage Corporation Common Stock (AGM)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Federal Agricultural Mortgage is a specialized credit intermediary, providing a secondary market for farm, ranch, ag-finance, rural utility, broadband, and renewable-energy loans. Its latest filed quarter, fiscal Q2 2026, the quarter ended June 30, 2026, showed net income of $67.0 million and diluted EPS of $5.41, up from $54.8 million and $4.48 in fiscal Q2 2025. That is real momentum. For fiscal year 2025 ended December 31, 2025, net income was $207.4 million and diluted EPS was $16.62, essentially flat versus fiscal year 2024's $207.2 million and $16.44, so the longer trend is steadier than the latest quarter. FairStock classifies it as a stalwart, with profit growing about 12.6% a year over five years. The niche is real, but I do not see a wide moat that would let a lender escape credit cycles. Financial health is mixed: FairStock calculates ROE of 13.48%, but ROCE of 0.63% and an Altman Z-Score of 0.08 point to leverage and balance-sheet fragility. The Piotroski F-Score is 5/9. FairStock's valuation metrics at the 2026-10-13 close look undemanding: P/E 11.18, P/B 1.77, dividend yield 2.85%, PEG 0.51, and FCF yield 14.0%. FairStock's Graham Number is $265.07, implying a 22.95% margin of safety, though its FairStock Score is only 41/100. Growth is decent but not explosive, and the low Altman Z means I would demand a larger discount for the leverage. This is a potentially cheap specialty lender, not a sure thing.

In plain English: Federal Agricultural Mortgage helps lenders provide loans to farms, rural utilities, broadband, and renewable-energy projects. Profits are growing: in the quarter ended June 30, 2026, net income was $67.0 million and earnings per share were $5.41, up from $54.8 million and $4.48 a year earlier. At the October 13, 2026 price of $204.23, the stock trades at about 11 times yearly profit and below one FairStock estimate of its value, so it looks somewhat cheap, though its heavy borrowing is a real risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer