Definitive Analysis
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Federal Agricultural Mortgage Corporation (AGM-PC)

Company Dividend Discount ModelIndustry: Financial - Credit ServicesSector: Financial Services

Valuation Snapshot

Stable Growth$461.80 - $1,225.02$706.13
Multi-Stage$321.84 - $351.32$336.31
Blended Fair Value$521.22
Current Price$167.98
Upside210.29%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.41%19.92%7.846.826.215.594.624.003.452.592.191.84
YoY Growth--15.02%9.75%11.18%21.06%15.39%15.80%33.29%18.17%19.25%44.20%
Dividend Yield--4.18%3.57%4.66%5.15%4.58%7.19%4.63%2.98%3.81%4.88%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)216.01
(-) Cash Dividends Paid (M)86.16
(=) Cash Retained (M)129.85
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)43.2027.0016.20
Cash Retained (M)129.85129.85129.85
(-) Cash Required (M)-43.20-27.00-16.20
(=) Excess Retained (M)86.65102.85113.65
(/) Shares Outstanding (M)10.9710.9710.97
(=) Excess Retained per Share7.909.3710.36
LTM Dividend per Share7.857.857.85
(+) Excess Retained per Share7.909.3710.36
(=) Adjusted Dividend15.7517.2318.21
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$461.80$706.13$1,225.02
Upside / Downside174.91%320.37%629.26%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)216.01230.05245.00260.92277.88295.95304.82
Payout Ratio39.89%49.91%59.93%69.95%79.98%90.00%92.50%
Projected Dividends (M)86.16114.81146.83182.53222.24266.35281.96

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)104.25105.24106.23
Year 2 PV (M)121.06123.36125.69
Year 3 PV (M)136.64140.56144.56
Year 4 PV (M)151.07156.88162.85
Year 5 PV (M)164.39172.33180.58
PV of Terminal Value (M)2,853.872,991.713,134.83
Equity Value (M)3,531.283,690.093,854.74
Shares Outstanding (M)10.9710.9710.97
Fair Value$321.84$336.31$351.32
Upside / Downside91.59%100.21%109.14%

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