Federal Agricultural Mortgage Corp
NYSE:AGM

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Federal Agricultural Mortgage Corp
NYSE:AGM
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Price: 186.42 USD -1.25% Market Closed
Market Cap: 2B USD

ROE
Return on Equity

11.8%
Current
12%
Average
6.6%
Industry

ROE, or Return on Equity, is a key financial ratio that measures a company's profitability. Specifically, it measures how many dollars of profit are generated for each dollar of shareholder's equity. A higher ROE indicates better financial performance and effective use of capital, making it a valuable metric for investors assessing a company's earning potential.

ROE
11.8%
=
Net Income
177.5m
/
Equity
1.5B

ROE Across Competitors

Federal Agricultural Mortgage Corp
Glance View

Market Cap
2B 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
817.5 USD
Undervaluation 77%
Intrinsic Value
Price
What is Return on Equity?

ROE, or Return on Equity, is a key financial ratio that measures a company's profitability. Specifically, it measures how many dollars of profit are generated for each dollar of shareholder's equity. A higher ROE indicates better financial performance and effective use of capital, making it a valuable metric for investors assessing a company's earning potential.

ROE
11.8%
=
Net Income
177.5m
/
Equity
1.5B
What is the ROE of Federal Agricultural Mortgage Corp?

Based on Federal Agricultural Mortgage Corp's most recent financial statements, the company has ROE of 11.8%.

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