Investors in Federal Agricultural Mortgage Corp (AGM.A, Financial) have witnessed a notable uptick in the company's stock performance recently. With a market capitalization of $1.99 billion, the stock price has climbed to $151.89, representing a 0.29% gain over the past week and an impressive 31.78% gain over the past three months. This surge has been reflected in the GF Value, which currently stands at $137.89, up from the past GF Value of $127.32. According to GuruFocus, the stock is considered to be Fairly Valued, maintaining this valuation status from three months prior.
Introduction to Federal Agricultural Mortgage Corp
Operating within the credit services industry, Federal Agricultural Mortgage Corp, also known as Farmer Mac, is a vital player in the U.S. secondary market for agricultural real estate and rural housing mortgage loans. The company's diverse operations span across segments such as Farm & Ranch, Corporate AgFinance, and Renewable Energy, among others. By purchasing eligible mortgage loans secured by first liens on agricultural real estate and rural housing, Farmer Mac plays a crucial role in sustaining and supporting the agricultural sector's financial needs. 
Assessing Profitability
Farmer Mac's financial health is robust, as indicated by its Profitability Rank of 7/10. The company's Return on Equity (ROE) is an impressive 15.00%, outperforming 78.19% of its peers in the industry. Furthermore, its Return on Assets (ROA) stands at 0.71%, surpassing 38.49% of competitors. A consistent track record of profitability over the past decade further solidifies Farmer Mac's financial stability, with 10 years of profitability better than 99.81% of companies in the sector. 
Growth Trajectory
The company's growth metrics are equally impressive, boasting a Growth Rank of 10/10. The 3-Year Revenue Growth Rate per Share stands at 16.40%, eclipsing 72.8% of its industry counterparts. Over a 5-year period, the Revenue Growth Rate per Share has been a solid 11.00%, better than 66.82% of similar companies. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 15.36%, which is more promising than 75.81% of companies. The 3-Year EPS without NRI Growth Rate is 9.50%, and the 5-Year EPS without NRI Growth Rate is 12.40%, both showcasing the company's strong earnings potential. 
Competitive Landscape
When compared to its competitors, Federal Agricultural Mortgage Corp holds its ground firmly. Navient Corp (NAVI, Financial), with a market cap of $2.06 billion, Lufax Holding Ltd (LU, Financial) at $1.24 billion, and Enova International Inc (ENVA, Financial) at $1.7 billion, are among its closest competitors in terms of market capitalization. Despite the competition, Farmer Mac's strong profitability and growth metrics suggest it is well-positioned within the credit services industry.
Conclusion
In summary, Federal Agricultural Mortgage Corp's stock performance has been remarkable, with a 32% increase in just three months. The company's solid profitability, as evidenced by its high ROE and ROA, combined with a decade of consistent profitability, positions it as a financially sound investment. Its exceptional growth rank and promising revenue and EPS growth rates further underscore its potential for sustained success. With a competitive position that stands up to its closest market cap rivals, Farmer Mac is a noteworthy stock for value investors to consider.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
