National Rural Utilities Cooperative Finance Corporation 5.500% Subordinated Notes due 2064 (Subordinated Deferrable Interest Notes) (NRUC)

Key Financials

AI Analysis

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

I look at this security first as a long-dated subordinated note, not as common stock. The issuer is a financial-services entity tied by name to rural utilities cooperatives; the stated coupon is 5.500% and maturity is 2064. The quoted price was $20.34 on 2026-10-16, near the bottom of its 52-week range of $19.60 to $24.87. That tells me the market is pricing credit and duration risk, but the supplied data do not include enough to judge the margin of safety. The filed profit record is uneven. Net income was $553.3M in fiscal 2024, $139.7M in fiscal 2025, and $262.1M in fiscal 2026. In fiscal Q1 2027, net income was $134.9M versus $4.8M in fiscal Q1 2026; fiscal Q2 2026 was $19.6M and fiscal Q3 2026 was $22.4M. Revenue, diluted EPS, P/E, P/B, ROE and debt/equity are not available here, so Graham-style valuation and balance-sheet tests cannot be completed. FairStock's computed Lynch category is SLOW GROWER — Shrinking, because profit fell 20.2% a year over five years. The business may have a niche, but I see no evidence in these figures of a durable moat or predictable earning power. For a subordinated, deferrable-interest note, the key question is the issuer's capacity to pay interest and principal over a very long horizon. With volatile net income, a long maturity and no coverage or asset-quality data, I would demand a clear discount for credit risk. The price is low in its range, but low price alone is not margin of safety.

In plain English: National Rural Utilities Cooperative Finance Corporation issues a 5.500% subordinated note due 2064, so this is a debt security rather than common stock. Its filed profits have been uneven—$553.3M in fiscal 2024, $139.7M in fiscal 2025 and $262.1M in fiscal 2026—so the business looks volatile rather than clearly strong. At $20.34, the note is near the low end of its 52-week range, but the supplied data do not let us say whether that price is cheap, fair or expensive.

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Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-31) · fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-30) · fiscal Q1 2026 10-Q (period ended 2025-08-31) · FY2026 10-K (period ended 2026-05-31) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-05-31)

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