Federal Agricultural Mortgage Corp
NYSE:AGM

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Federal Agricultural Mortgage Corp Logo
Federal Agricultural Mortgage Corp
NYSE:AGM
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Price: 189.7 USD -0.85%
Market Cap: 2B USD

Operating Margin
Federal Agricultural Mortgage Corp

15.9%
Current
25%
Average
24.4%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
15.9%
=
Operating Profit
254.4m
/
Revenue
1.6B

Operating Margin Across Competitors

Federal Agricultural Mortgage Corp
Glance View

Market Cap
2.1B USD
Industry
Financial Services

Federal Agricultural Mortgage Corporation, known as Farmer Mac, was born from Congress's innovative vision in 1988, aimed at bolstering the rural and agricultural economy. As a key player in the U.S. secondary market for agricultural loans, Farmer Mac stands tall with a mission to provide liquidity and increase lending opportunities for underserved agricultural communities. The company doesn’t directly lend to farmers; instead, it purchases loans from lenders such as banks and Farm Credit System institutions. By doing so, it injects the much-needed cash back into the lenders' coffers, encouraging them to extend more credit to the agricultural sector. This model ensures that farmers have access to more diverse and competitive financing options, creating a robust agricultural economy that fuels both community growth and the broader U.S. economy. The core of Farmer Mac’s business hinges on its ability to package these purchased loans into mortgage-backed securities, which are then sold to investors. This not only allows Farmer Mac to mitigate the risk associated with agricultural lending but also generates revenue through fees and interest rate spreads. Essentially, Farmer Mac earns money by bridging the gap between agricultural loan originators and the capital markets, providing a steady flow of credit across the agricultural landscape. Its role is akin to that of a vital artery, ensuring constant and reliable financial circulation within the agriculture sector. Through this sophisticated intermediation, Farmer Mac supports the stability and growth of rural America, underpinning the livelihoods of countless farmers and agribusinesses.

AGM Intrinsic Value
837.74 USD
Undervaluation 77%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
15.9%
=
Operating Profit
254.4m
/
Revenue
1.6B
What is the Operating Margin of Federal Agricultural Mortgage Corp?

Based on Federal Agricultural Mortgage Corp's most recent financial statements, the company has Operating Margin of 15.9%.

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