AGM - Federal Agricultural Mortgage: Stable Earnings Stream With Above-Average Growth Prospects
2024-05-28 01:02:22 ET
Summary
- Federal Agricultural Mortgage stock has increased by 117% since 2019, with earnings up 90%.
- The company has demonstrated outstanding performance in managing credit risk, interest rate risk, and leverage risk.
- Farmer Mac has a strong competitive advantage as a government-sponsored enterprise, with a moat that provides lower debt costs than even the best peers.
- AGM's expanded charter gives it access to rapidly growing rural utility and alternative energy markets.
I have been recommending Federal Agricultural Mortgage Corporation (AGM) (Farmer Mac) stock on Seeking Alpha since 2019. Since my first report, the stock is up 117%. Earnings are up 90%. And results have been outstanding for all three of the key risks for a financial company:
- Credit risk
- Interest rate risk
- Capital, or leverage risk