Farmer Mac: Record Growth Supports More Upside

Farmer Mac reported record business volume of $37.2 billion, up 22% year over year. Revenue reached $125.2 million, while core earnings rose to $58.8 million, or $5.40 per share. Core ROE reached 18.9%, supported by a solid capital position and continued shareholder returns. I rate AGM a Buy for high-single-digit to low-double-digit total return, driven by earnings growth, dividends, and re-rating.

When I look at Farmer Mac (AGM) after this quarter, I am impressed by the results. The company just posted a record quarter; business volume crossed $37.2 billion, revenue reached $125.2 million, and core earnings.