AGM-A
Federal Agricultural Mortgage Trades at 12.3x P/E After Record Q2 Earnings
Federal Agricultural Mortgage reported second quarter 2026 net income of US$66.95 million and diluted earnings per share from continuing operations of US$5.41. The stock has returned 30.24% over the past three months and 38.47% over one year. Its price-to-earnings ratio of 12.3x compares favorably with the US Diversified Financial industry average of 15.3x, a peer average of 13.5x, and an estimated fair P/E of 13x, while the broader US market trades at 19.3x. However, a Simply Wall St discounted cash flow model estimates a fair value of US$113.52 per share versus the current price of US$227.60, suggesting overvaluation. Risks include potential weakening in agricultural and rural credit conditions or pressure on funding and hedging costs.