OTCPK:FMCC.K

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Slightly overvalued 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

Stable Share Price: FMCC.K has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

FMCC.K

-6.4%

US Mortgage

-2.4%

US Market


1 Year Return

-44.1%

FMCC.K

-27.0%

US Mortgage

12.0%

US Market

Return vs Industry: FMCC.K underperformed the US Mortgage industry which returned -27% over the past year.

Return vs Market: FMCC.K underperformed the US Market which returned 12% over the past year.


Shareholder returns

FMCC.KIndustryMarket
7 Day-0.2%-6.4%-2.4%
30 Day-16.4%-14.6%-6.5%
90 Day4.9%-16.9%8.4%
1 Year-44.1%-44.1%-24.9%-27.0%14.5%12.0%
3 Year12.8%12.8%5.3%-3.8%34.8%25.8%
5 Year83.5%83.5%4.7%-9.1%82.1%61.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FMCC.K ($12.75) is trading below our estimate of fair value ($111.08)

Significantly Below Fair Value: FMCC.K is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FMCC.K is unprofitable, so we can't compare its PE Ratio to the US Mortgage industry average.

PE vs Market: FMCC.K is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FMCC.K's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FMCC.K has negative assets, so we can't compare its PB Ratio to the US Mortgage industry average.


Next Steps

Future Growth

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

106.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMCC.K is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FMCC.K is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FMCC.K is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FMCC.K's revenue (1.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: FMCC.K's revenue (1.6% 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.K'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?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMCC.K is currently unprofitable.

Growing Profit Margin: FMCC.K is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FMCC.K is unprofitable, but has reduced losses over the past 5 years at a rate of 12.7% per year.

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

Earnings vs Industry: FMCC.K is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage industry (6.7%).


Return on Equity

High ROE: FMCC.K has a negative Return on Equity (54.63%), as it is currently unprofitable.


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


Financial Institutions Analysis

Asset Level: FMCC.K's Assets to Equity ratio (204.1x) is very high.

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

Low Risk Liabilities: FMCC.K reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if FMCC.K has an appropriate level of Loans to Assets ratio.

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: FMCC.K 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.K's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

David Brickman (54 yo)

1.17yrs

Tenure

US$2,006,988

Compensation

Mr. David M. Brickman has been President and Chief Executive Officer of Freddie Mac(formerly known as Federal Home Loan Mortgage Corporation) since September 5, 2018 and July 1, 2019 respectively and serve ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.01M) is below average for companies of similar size in the US market ($USD7.46M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Brickman
CEO, President & Director1.17yrsUS$2.01m0.00011%
$ 6.8k
Michael Hutchins
Executive Vice President of Investments & Capital Markets5.67yrsUS$3.31mno data
Ricardo Anzaldua-Montoya
Executive VP1.67yrsUS$2.52mno data
Anil Hinduja
Executive VP & Chief Risk Officer5.17yrsUS$2.67mno data
Christian Lown
Executive VP & CFO0.25yrno datano data
Frank Nazzaro
Executive VP & Chief Information Officer1.33yrsno datano data
Jerry Weiss
Executive VP & Chief Administrative Officer10.08yrsUS$2.17mno data
Jeffrey Markowitz
Senior VP of External Relations & Corporate Communicationsno datano datano data
John Krenitsky
Senior VP & Chief Compliance Officer2.25yrsno datano data
Jacqueline Welch
Senior VP2.67yrsno datano data
Mark Hanson
Senior Vice President8.67yrsno datano data
James Bowden
Senior Vice President of Homestepno datano datano data

2.5yrs

Average Tenure

58yo

Average Age

Experienced Management: FMCC.K's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Brickman
CEO, President & Director1.17yrsUS$2.01m0.00011%
$ 6.8k
Lance Drummond
Independent Director5.17yrsUS$170.00kno data
Mark Grier
Independent Director0.58yrno datano data
Saiyid Naqvi
Independent Director7.08yrsUS$175.00kno data
Sara Mathew
Independent Non-Executive Chairman1.58yrsUS$277.29kno data
Allan Merrill
Independent Directorno datano datano data
Aleem Gillani
Independent Director1.67yrsUS$181.46kno data
Grace Huebscher
Independent Director2.75yrsUS$173.58kno data
Kathleen Casey
Independent Director0.92yrUS$40.00kno data
Mark Bloom
Independent Director0.83yrUS$16.09kno data
Christopher Herbert
Independent Director2.5yrsUS$160.00kno data
Paul Schumacher
Independent Directorno datano datano data

1.6yrs

Average Tenure

59yo

Average Age

Experienced Board: FMCC.K's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Freddie Mac
  • Ticker: FMCC.K
  • Exchange: OTCPK
  • Founded: 1970
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$6.217b
  • Shares outstanding: 3.22b
  • Website: https://www.freddiemac.com

Number of Employees


Location

  • Freddie Mac
  • 8200 Jones Branch Drive
  • McLean
  • Virginia
  • 22102-3110
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMCCOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 1988
FHLDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1988
FHLXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1988
0IKZLSE (London Stock Exchange)YesCommon StockGBUSDDec 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.POTCPK (Pink Sheets LLC)PFD 6% NON-CUMUSUSDJun 2001
FMCC.JOTCPK (Pink Sheets LLC)PFD VAR RATEUSUSDJun 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.TOTCPK (Pink Sheets LLC)PFD PERP 6.42%USUSDJul 2006
FMCC.SOTCPK (Pink Sheets LLC)PFD PERP VARUSUSDJul 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 Analysis2020/09/26 06:13
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.