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FMCC

Federal Home Loan Mortgage OTCPK:FMCC Stock Report

Last Price

US$0.50

Market Cap

US$1.6b

7D

-8.3%

1Y

-59.7%

Updated

26 Jun, 2022

Data

Company Financials +
FMCC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance2/6
Financial Health0/6
Dividends0/6

FMCC Stock Overview

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States.

Federal Home Loan Mortgage Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Federal Home Loan Mortgage
Historical stock prices
Current Share PriceUS$0.50
52 Week HighUS$1.52
52 Week LowUS$0.48
Beta2
1 Month Change-34.21%
3 Month Change-38.16%
1 Year Change-59.68%
3 Year Change-80.77%
5 Year Change-77.58%
Change since IPO-91.27%

Recent News & Updates

Shareholder Returns

FMCCUS MortgageUS Market
7D-8.3%7.6%6.6%
1Y-59.7%-37.6%-18.4%

Return vs Industry: FMCC underperformed the US Mortgage industry which returned -37.6% over the past year.

Return vs Market: FMCC underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is FMCC's price volatile compared to industry and market?
FMCC volatility
FMCC Average Weekly Movement6.9%
Mortgage Industry Average Movement3.7%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: FMCC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FMCC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19707,301Michael DeVitohttps://www.freddiemac.com

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. The company purchases single-family and multifamily residential mortgage loans originated by lenders, as well as invests in mortgage loans and mortgage-related securities. It operates through two segments, Single-family and Multifamily.

Federal Home Loan Mortgage Fundamentals Summary

How do Federal Home Loan Mortgage's earnings and revenue compare to its market cap?
FMCC fundamental statistics
Market CapUS$1.61b
Earnings (TTM)US$220.00m
Revenue (TTM)US$24.21b

7.3x

P/E Ratio

0.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FMCC income statement (TTM)
RevenueUS$24.21b
Cost of RevenueUS$0
Gross ProfitUS$24.21b
Other ExpensesUS$23.99b
EarningsUS$220.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.068
Gross Margin100.00%
Net Profit Margin0.91%
Debt/Equity Ratio9,648.9%

How did FMCC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is FMCC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FMCC?

Other financial metrics that can be useful for relative valuation.

FMCC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.09x

Price to Earnings Ratio vs Peers

How does FMCC's PE Ratio compare to its peers?

FMCC PE Ratio vs Peers
The above table shows the PE ratio for FMCC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.8x
FBC Flagstar Bancorp
4.3x-21.0%US$1.9b
PFS Provident Financial Services
10.2x4.2%US$1.7b
NMIH NMI Holdings
5.9x16.3%US$1.5b
PFSI PennyMac Financial Services
3x-13.7%US$2.4b
FMCC Federal Home Loan Mortgage
7.3x77.7%US$1.6b

Price-To-Earnings vs Peers: FMCC is expensive based on its Price-To-Earnings Ratio (7.3x) compared to the peer average (5.8x).


Price to Earnings Ratio vs Industry

How does FMCC's PE Ratio compare vs other companies in the US Mortgage Industry?

Price-To-Earnings vs Industry: FMCC is good value based on its Price-To-Earnings Ratio (7.3x) compared to the US Mortgage industry average (11.3x)


Price to Earnings Ratio vs Fair Ratio

What is FMCC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FMCC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.3x
Fair PE Ratio42x

Price-To-Earnings vs Fair Ratio: FMCC is good value based on its Price-To-Earnings Ratio (7.3x) compared to the estimated Fair Price-To-Earnings Ratio (42x).


Share Price vs Fair Value

What is the Fair Price of FMCC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FMCC ($0.5) is trading below our estimate of fair value ($31.61)

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


Price to Earnings Growth Ratio

PEG Ratio: FMCC is good value based on its PEG Ratio (0.1x)


Discover undervalued companies

Future Growth

How is Federal Home Loan Mortgage forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


77.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMCC's forecast earnings growth (77.7% per year) is above the savings rate (1.9%).

Earnings vs Market: FMCC's earnings (77.7% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: FMCC's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FMCC's revenue is expected to decline over the next 3 years (-25% per year).

High Growth Revenue: FMCC's revenue is forecast to decline over the next 3 years (-25% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

How has Federal Home Loan Mortgage performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FMCC has high quality earnings.

Growing Profit Margin: FMCC's current net profit margins (0.9%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: FMCC has become profitable over the past 5 years, growing earnings by 12.6% per year.

Accelerating Growth: FMCC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FMCC had negative earnings growth (-65.2%) over the past year, making it difficult to compare to the Mortgage industry average (6.7%).


Return on Equity

High ROE: Whilst FMCC's Return on Equity (41.44%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Federal Home Loan Mortgage's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

0/6

Financial Health Score 0/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FMCC's Assets to Equity ratio (98x) is very high.

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

Low Risk Liabilities: FMCC 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 has an appropriate level of Loans to Assets ratio.

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

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


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Dividend

What is Federal Home Loan Mortgage current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate FMCC'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'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's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

1.8yrs

Average management tenure


CEO

Michael DeVito (55 yo)

1

Tenure

US$443,032

Compensation

Mr. Michael J. DeVito has been Chief Executive Officer and Director at Federal Home Loan Mortgage Corporation since June 1, 2021. He is a leader in the mortgage and financial services industry. Mr. DeVito...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD443.03K) is below average for companies of similar size in the US market ($USD5.47M).

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


Leadership Team

Experienced Management: FMCC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: FMCC's board of directors are not considered experienced ( 2.6 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

Federal Home Loan Mortgage Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Federal Home Loan Mortgage Corporation
  • Ticker: FMCC
  • Exchange: OTCPK
  • Founded: 1970
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Implied Market Cap: US$1.611b
  • Shares outstanding: 3.22b
  • Website: https://www.freddiemac.com

Number of Employees


Location

  • Federal Home Loan Mortgage Corporation
  • 8200 Jones Branch Drive
  • McLean
  • Virginia
  • 22102-3110
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.