Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Federal Agricultural Mortgage Corporation (AGM-PC)

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

Valuation Snapshot

Stable Growth$3,323.08 - $3,915.15$3,669.07
Multi-Stage$1,861.93 - $2,042.79$1,950.67
Blended Fair Value$2,809.87
Current Price$167.98
Upside1,572.74%
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 Rate4.12%4.12%4.12%
Growth Rate5.50%6.50%7.50%
Fair Value$3,323.08$3,669.07$3,915.15
Upside / Downside1,878.26%2,084.23%2,230.72%

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 Rate4.12%4.12%4.12%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)109.23110.27111.31
Year 2 PV (M)132.91135.44138.00
Year 3 PV (M)157.20161.71166.31
Year 4 PV (M)182.10189.11196.31
Year 5 PV (M)207.64217.67228.08
PV of Terminal Value (M)19,640.4320,589.0721,574.01
Equity Value (M)20,429.5121,403.2622,414.02
Shares Outstanding (M)10.9710.9710.97
Fair Value$1,861.93$1,950.67$2,042.79
Upside / Downside1,008.42%1,061.25%1,116.09%

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