OTCPK:FMCC.G

Stock Analysis Report

Executive Summary

Freddie Mac operates in the secondary mortgage market in the United States.

Snowflake

Fundamentals

Moderate growth potential with weak fundamentals.


Similar Companies

Share Price & News

How has Freddie Mac's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.3%

FMCC.G

2.6%

US Mortgage

1.0%

US Market


1 Year Return

111.2%

FMCC.G

18.4%

US Mortgage

8.0%

US Market

Return vs Industry: FMCC.G exceeded the US Mortgage industry which returned 18.4% over the past year.

Return vs Market: FMCC.G exceeded the US Market which returned 8% over the past year.


Shareholder returns

FMCC.GIndustryMarket
7 Day-2.3%2.6%1.0%
30 Day-10.8%2.0%-0.07%
90 Day8.9%4.5%-1.0%
1 Year111.2%111.2%20.9%18.4%10.4%8.0%
3 Year296.0%296.0%42.3%32.6%46.2%36.7%
5 Year216.8%216.8%74.3%55.5%64.3%46.2%

Price Volatility Vs. Market

How volatile is Freddie Mac's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Freddie Mac undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Freddie Mac is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Freddie Mac has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at Freddie Mac's' forecasted future earnings and revenues from industry analysts to understand how the company is expected to perform in the future against its competitors and the wider market.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Freddie Mac regulatory filings here.
  • Explore potentially undervalued companies in the Banks industry.

Future Growth

How is Freddie Mac forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

65.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMCC.G is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: FMCC.G is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: FMCC.G's loss is forecast to worsen by 0% next year.

Revenue vs Market: FMCC.G's revenue (1.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FMCC.G's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FMCC.G's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Freddie Mac performed over the past 5 years?

57.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FMCC.G is unprofitable, but has reduced losses over the past 5 years at a rate of 57.7% per year.

Accelerating Growth: Unable to compare FMCC.G's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FMCC.G is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage industry (30.7%).


Return on Equity

High ROE: FMCC.G has a negative Return on Equity (139.23%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: FMCC.G is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: FMCC.G is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Freddie Mac's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FMCC.G has a low level of unsold assets or inventory.

Debt Coverage by Assets: FMCC.G's debt is not covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable FMCC.G has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FMCC.G is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -39.9% per year.


Financial Institutions Analysis

Asset Level: FMCC.G's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if FMCC.G has a sufficient allowance for bad loans.

Low Risk Liabilities: FMCC.G reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FMCC.G has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FMCC.G has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if FMCC.G has an appropriate level of bad loans.


Next Steps

Dividend

What is Freddie Mac's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate FMCC.G's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FMCC.G's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if FMCC.G's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FMCC.G's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FMCC.G is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FMCC.G's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Freddie Mac's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

David Brickman (53yo)

0.3yrs

Tenure

US$3,038,663

Compensation

Mr. David M. Brickman has been President of Federal Home Loan Mortgage Corporation since September 5, 2018 and served as its head of Multifamily until November 2018. He was Executive Vice President of Mult ...


CEO Compensation Analysis

Compensation vs. Market: David has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Management Age and Tenure

3.1yrs

Average Tenure

61yo

Average Age

Experienced Management: FMCC.G's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: FMCC.G's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jerry Weiss (61yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 9.2yrs
    • Compensation: US$2.17m
  • David Lowman (61yo)

    Executive Vice President of Single-Family Business

    • Tenure: 6.4yrs
    • Compensation: US$3.36m
  • Ricardo Anzaldua-Montoya (65yo)

    Executive VP

    • Tenure: 0.8yrs
  • Jim Mackey (52yo)

    Executive VP & CFO

    • Tenure: 5.9yrs
    • Compensation: US$3.36m
  • David Brickman (53yo)

    CEO, President & Director

    • Tenure: 0.3yrs
    • Compensation: US$3.04m
  • John Krenitsky

    Senior VP & Chief Compliance Officer

    • Tenure: 1.3yrs
  • Michael Hutchins (63yo)

    Executive Vice President of Investments & Capital Markets

    • Tenure: 4.8yrs
    • Compensation: US$3.07m
  • Donald Kish (50yo)

    Senior VP

    • Tenure: 1.4yrs
  • Jeff Markowitz

    Senior VP of External Relations & Corporate Communications

    • Tenure: 0yrs
  • Frank Nazzaro

    Executive VP

    • Tenure: 0yrs

Board Members

  • Lance Drummond (65yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$170.00k
  • Sy Naqvi (69yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$175.00k
  • Sara Mathew (64yo)

    Non-Executive Chairman

    • Tenure: 0.7yrs
    • Compensation: US$185.00k
  • Gene Shanks (72yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$173.21k
  • Aleem Gillani (57yo)

    Director

    • Tenure: 0.8yrs
  • Steve Kohlhagen (71yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$168.81k
  • Grace Huebscher (59yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$160.00k
  • David Brickman (53yo)

    CEO, President & Director

    • Tenure: 0.3yrs
    • Compensation: US$3.04m
  • Kathleen Casey (52yo)

    Independent Director

    • Tenure: 0yrs
  • Chris Herbert (58yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$121.33k

Company Information

Freddie Mac's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Freddie Mac
  • Ticker: FMCC.G
  • Exchange: OTCPK
  • Founded: 1970
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$10.534b
  • Shares outstanding: 3.22b
  • Website: https://www.freddiemac.com

Number of Employees


Location

  • Freddie Mac
  • 8200 Jones Branch Drive
  • McLean
  • Virginia
  • 22102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMCCOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 1988
0IKZLSE (London Stock Exchange)YesCommon StockGBUSDDec 1988
FHLDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1988
FMCC.IOTCPK (Pink Sheets LLC)PFD VAR RATEUSUSDMay 1996
FMCC.HOTCPK (Pink Sheets LLC)PFD 5.1%USUSDSep 1998
FMCC.GOTCPK (Pink Sheets LLC)PFD FLTG RATEUSUSDOct 1998
FMCC.KOTCPK (Pink Sheets LLC)PFD 5.79%USUSDJul 1999
FMCC.LOTCPK (Pink Sheets LLC)PFD 5.97%USUSDDec 1999
FMCC.MOTCPK (Pink Sheets LLC)PFD VAR RATEUSUSDFeb 2001
FMCC.JOTCPK (Pink Sheets LLC)PFD VAR RATEUSUSDJun 2001
FMCC.POTCPK (Pink Sheets LLC)PFD 6% NON-CUMUSUSDJun 2001
FMCC.NOTCPK (Pink Sheets LLC)PFD VR RT NCUMUSUSDJun 2001
FMCC.OOTCPK (Pink Sheets LLC)PFD 5.81% NCUMUSUSDJun 2001
FMCK.POTCPK (Pink Sheets LLC)PFD 5.70%USUSDNov 2001
FREG.POTCPK (Pink Sheets LLC)PFD 5.81%USUSDJun 2002
FMCCBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 0.5 COM STK USD0.21ARARSNov 2002
FREJ.NOTCPK (Pink Sheets LLC)PFD PERP 5.81%USUSDApr 2004
FMCC.SOTCPK (Pink Sheets LLC)PFD PERP VARUSUSDJul 2006
FMCC.TOTCPK (Pink Sheets LLC)PFD PERP 6.42%USUSDJul 2006
FMCK.OOTCPK (Pink Sheets LLC)PERP PFD 5.9%USUSDOct 2006
FMCK.MOTCPK (Pink Sheets LLC)PFD PERP 5.57%USUSDJan 2007
FMCK.NOTCPK (Pink Sheets LLC)PFD CUM 5.66%USUSDApr 2007
FMCK.LOTCPK (Pink Sheets LLC)6.02% NON CM PFDUSUSDJul 2007
FMCK.IOTCPK (Pink Sheets LLC)PFD6.55% SER YUSUSDSep 2007
FMCK.JOTCPK (Pink Sheets LLC)PFD 8.375% NCMUSUSDNov 2007

Biography

Freddie Mac operates in the secondary mortgage market in the United States. The company purchases residential mortgage loans originated by lenders, as well as invests in mortgage loans and mortgage-related ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:37
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.