Should You Consider Investing in Federal Agricultural Mortgage?
December 30, 2022
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Federal Agricultural Mortgage ($NYSE:AGM.A) Corporation, or Farmer Mac as it is commonly known, is a publicly traded company that provides a secondary market for agricultural real estate and rural housing mortgage loans. Farmer Mac works with lenders to purchase agricultural mortgage loans, which in turn provides lenders with more capital to offer more loans. So, should you consider investing in Federal Agricultural Mortgage? In short, it depends on your investment goals. Farmer Mac’s stock has proven to be volatile in the past, so it may not be the best choice for conservative investors.
However, if you’re looking for a more aggressive investment, Farmer Mac may be worth considering. The company’s financials are sound, with solid profit margins and a healthy balance sheet. Furthermore, the company has been expanding its operations and product offerings in recent years, which could translate into further growth in the future.
Additionally, Farmer Mac’s dividend yield is relatively attractive, making it an attractive option for income-seeking investors. Overall, adding Federal Agricultural Mortgage to your investment watchlist may be a good idea if you’re looking for a more aggressive investment. However, it’s important to do your own due diligence and research the company thoroughly before making any investment decisions.
Price History
Investing in Federal Agricultural Mortgage (FAM) is something that many investors have been considering lately, as the media exposure around it has been mostly positive.
However, on Tuesday the stock opened at $98.5 and closed at $98.0, a drop of 3.5% from its previous closing price of 101.5. This has raised questions about the potential of investing in FAM. Understanding the current market and potential risks associated with investing in FAM is important for potential investors. As an agricultural mortgage real estate investment trust, FAM invests in agricultural mortgages and other related assets to generate income for shareholders. The trust generates income through mortgage interest payments, as well as from other activities such as loan servicing and asset management. FAM also offers additional benefits to investors, such as diversification of their portfolios, reduced risk, and competitive returns. However, potential investors should be aware that there are some risks associated with investing in FAM. These include potential changes in interest rates, fluctuations in the agricultural mortgage market, and changes in the trust’s portfolio composition. Overall, FAM is an attractive investment option for those looking to diversify their portfolios and gain exposure to the agricultural mortgage market. However, potential investors should be sure to understand the risks associated with the investment before putting their money into it. Investing in FAM can yield competitive returns, but it is important to understand the risks before making a decision. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AGM.A. More…
| Total Revenues | Net Income | Net Margin |
| 287.76 | 137.58 | 57.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AGM.A. More…
| Operations | Investing | Financing |
| 709.45 | -2.4k | 1.66k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AGM.A. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 26.44k | 25.21k | 114.07 |
Key Ratios Snapshot
Some of the financial key ratios for AGM.A are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.0% | – | – |
| FCF Margin | ROE | ROA |
| 246.5% | 10.7% | 0.5% |
VI Analysis
Company fundamentals can provide insight into its long-term potential. Investors can use such information to decide if they would be interested in such a company. For example, the VI Star Chart shows that Federal Agricultural Mortgage is classified as a “cheetah”, which means it achieved high revenue or earnings growth but is considered less stable due to lower profitability. Federal Agricultural Mortgage’s fundamentals are strong in dividend and growth and weak in asset and profitability. Its intermediate health score of 4/10 suggests that it is able to ride out any financial crisis without the risk of bankruptcy. Investors who are looking for high growth companies with a strong dividend may find Federal Agricultural Mortgage attractive. However, they should also be aware of the company’s low profitability and its potential impact on its long-term success. Overall, Federal Agricultural Mortgage’s fundamentals provide insight into its long-term potential, which can be used to inform investment decisions. While it may be attractive to certain investors, it should also be considered carefully before investing. More…
VI Peers
It is one of the leading providers of agricultural finance in the United States and is a major player in the global agricultural finance market. Farmer Mac is supported by its competitors ELANA Agrocredit AD Sofia, Zuoli Kechuang Micro-finance Co Ltd, and IIFL Finance Ltd, who all provide agricultural finance services to their respective regions. All four companies are committed to providing financial solutions to farmers and rural communities, helping to drive economic development and growth in the agricultural sector.
– ELANA Agrocredit AD Sofia ($LTS:0QRI)
Agrocredit AD Sofia is a Bulgarian financial services provider that caters to the agricultural sector. It offers loans, credit lines, insurance policies, and other services to its clients. With a market cap of 37.16M, Agrocredit is a medium-sized company that is well positioned to benefit from the growth of the agricultural sector. Its Return on Equity (ROE) of 7.33% is indicative of its strong financial performance and ability to generate profits for its shareholders. Agrocredit’s commitment to providing quality services to its clients has enabled it to become a leader in its field.
– Zuoli Kechuang Micro-finance Co Ltd ($SEHK:06866)
Zuoli Kechuang Micro-finance Co Ltd is a Chinese financial services company that provides micro-finance solutions to customers in China. With a market cap of 354M as of 2022, the company has been able to maintain a healthy balance sheet and generate returns for its shareholders. It has also demonstrated an impressive return on equity of 5.39%, indicating the company’s ability to generate a good return on its shareholders’ equity. The company’s success in its microfinance operations has enabled it to grow its market capitalization and return on equity over the years.
– IIFL Finance Ltd ($BSE:532636)
IIFL Finance Ltd is an India-based non-banking financial company (NBFC) offering a range of financial services. Its products and services include consumer, micro, and home loans, commercial vehicle financing, wealth management, NBFC services, and more. The company has a market capitalization of 178.9 billion as of 2022, making it one of the largest NBFCs in India. It also has a healthy return on equity (ROE) of 14.99%, indicating that the company is profitable and efficient in its operations. The company has a strong presence in the country and is well-positioned to benefit from the growing demand for financial services in India.
Summary
Federal Agricultural Mortgage Corporation (Farmer Mac) is an agricultural financial services company that provides financing and a secondary market for agricultural real estate and rural housing mortgages. While recent media exposure has been mostly positive, the stock price has moved down slightly on the day of announcement. Investors should do their own due diligence to determine if this company is a good fit for their portfolio. It is important to consider the company’s background, financial performance, and future prospects before investing.
Additionally, investors should assess the potential risks associated with investing in Farmer Mac, such as changes in market conditions, regulatory requirements, and potential competition.
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