OTCPK:FMCC.L

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.

Risks

  • Freddie Mac is covered by less than 3 analysts.

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

8.4%

OTCPK:FMCC.L

2.1%

US Mortgage

2.1%

US Market


1 Year Return

110.3%

OTCPK:FMCC.L

-0.7%

US Mortgage

-0.04%

US Market

FMCC.L outperformed the Mortgage industry which returned -1.5% over the past year.

FMCC.L outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

FMCC.LIndustryMarket
7 Day8.4%2.1%2.1%
30 Day2.4%-1.9%-3.2%
90 Day-18.0%0.6%2.8%
1 Year110.3%110.3%1.4%-0.7%2.2%-0.04%
3 Year238.6%238.6%32.9%24.1%41.5%32.3%
5 Year5.8%5.8%59.3%42.6%55.0%37.8%

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 based on future cash flows and its price relative to the stock 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 expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

106.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Freddie Mac's revenue is expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).

Freddie Mac's earnings are expected to grow significantly at over 20% yearly.

Freddie Mac's revenue growth is positive but not above the United States of America market average.

Freddie Mac's earnings growth is expected to exceed the United States of America market average.

Freddie Mac's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Freddie Mac will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Freddie Mac does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Freddie Mac's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Freddie Mac's 1-year growth to the US Mortgage industry average as it is not currently profitable.


Return on Equity

Whilst Freddie Mac made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

It is difficult to establish if Freddie Mac has efficiently used its assets last year compared to the US Mortgage industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Freddie Mac improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Unable to establish if Freddie Mac has an acceptable proportion of non-loan assets without balance sheet data.

Unable to establish if Freddie Mac has a sufficient allowance for bad loans without relevant financial data.

Unable to establish if Freddie Mac's liabilities are primarily made up of low risk funding sources without deposits or liabilities data.

Freddie Mac's level of assets compared to its equity is very high (i.e. bank has borrowed heavily to fund lending).

Freddie Mac reports no customer deposits, loans are made up entirely of borrowed funds.

Unable to establish if Freddie Mac has an acceptable level of bad loans without bad loans data.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Freddie Mac's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Freddie Mac's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Freddie Mac has not reported any payouts.

Unable to verify if Freddie Mac's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Freddie Mac has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

David Brickman (53yo)

0.1yrs

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

David's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for David to compare compensation growth.


Management Age and Tenure

2.9yrs

Average Tenure

61yo

Average Age

The tenure for the Freddie Mac management team is about average.


Board Age and Tenure

1.7yrs

Average Tenure

64yo

Average Age

The average tenure for the Freddie Mac board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jerry Weiss (61yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 9.0yrs
    • Compensation: US$2.17m
  • David Lowman (61yo)

    Executive Vice President of Single-Family Business

    • Tenure: 6.3yrs
    • Compensation: US$3.36m
  • Ricardo Anzaldua-Montoya (65yo)

    Executive VP

    • Tenure: 0.6yrs
  • Jim Mackey (52yo)

    Executive VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$3.36m
  • David Brickman (53yo)

    CEO, President & Director

    • Tenure: 0.1yrs
    • Compensation: US$3.04m
  • John Krenitsky

    Senior VP & Chief Compliance Officer

    • Tenure: 1.2yrs
  • Michael Hutchins (63yo)

    Executive Vice President of Investments & Capital Markets

    • Tenure: 4.6yrs
    • Compensation: US$3.07m
  • Donald Kish (50yo)

    Senior VP

    • Tenure: 1.3yrs
  • Jeff Markowitz

    Senior VP of External Relations & Corporate Communications

    • Tenure: 0.0yrs
  • Frank Nazzaro

    Senior VP

    • Tenure: 0.0yrs

Board Members

  • Lance Drummond (65yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$170.00k
  • Sy Naqvi (69yo)

    Director

    • Tenure: 6.0yrs
    • Compensation: US$175.00k
  • Sara Mathew (64yo)

    Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: US$185.00k
  • Gene Shanks (72yo)

    Director

    • Tenure: 10.7yrs
    • Compensation: US$173.21k
  • Aleem Gillani (57yo)

    Director

    • Tenure: 0.6yrs
  • Steve Kohlhagen (71yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: US$168.81k
  • Grace Huebscher (59yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$160.00k
  • David Brickman (53yo)

    CEO, President & Director

    • Tenure: 0.1yrs
    • Compensation: US$3.04m
  • Chris Herbert (58yo)

    Director

    • Tenure: 1.4yrs
    • 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.L
  • Exchange: OTCPK
  • Founded: 1970
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$8.633b
  • 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
FHLDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1988
FMCCOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 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.JOTCPK (Pink Sheets LLC)PFD VAR RATEUSUSDJun 2001
FMCC.POTCPK (Pink Sheets LLC)PFD 6% NON-CUMUSUSDJun 2001
FMCC.OOTCPK (Pink Sheets LLC)PFD 5.81% NCUMUSUSDJun 2001
FMCC.NOTCPK (Pink Sheets LLC)PFD VR RT NCUMUSUSDJun 2001
FMCK.POTCPK (Pink Sheets LLC)PFD 5.70%USUSDNov 2001
FREG.POTCPK (Pink Sheets LLC)PFD 5.81%USUSDJun 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 Analysis2019/08/22 23:37
End of Day Share Price2019/08/22 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.