Freddie Mac
Market Cap
US$4.5b
Last Updated
2020/04/08 07:26 UTC
Data Sources
Company Financials +
Executive Summary
Freddie Mac operates in the secondary mortgage market in the United States.
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: FMCC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.4%
FMCC
-4.5%
US Mortgage
2.4%
US Market
1 Year Return
-46.0%
FMCC
-32.0%
US Mortgage
-10.0%
US Market
Return vs Industry: FMCC underperformed the US Mortgage industry which returned -32% over the past year.
Return vs Market: FMCC underperformed the US Market which returned -10% over the past year.
Shareholder returns
| FMCC | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.4% | -4.5% | 2.4% |
| 30 Day | -29.1% | -30.7% | -11.0% |
| 90 Day | -55.4% | -37.7% | -19.4% |
| 1 Year | -46.0%-46.0% | -30.3%-32.0% | -8.1%-10.0% |
| 3 Year | -41.5%-41.5% | -24.9%-30.1% | 17.3%9.6% |
| 5 Year | -47.2%-47.2% | -5.5%-16.0% | 36.1%21.1% |
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 3 analysts?
49.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FMCC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: FMCC is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: FMCC's is expected to become profitable in the next 3 years.
Revenue vs Market: FMCC's revenue is expected to decline over the next 3 years (-0.6% per year).
High Growth Revenue: FMCC's revenue is forecast to decline over the next 3 years (-0.6% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FMCC's Return on Equity is forecast to be low in 3 years time (12%).
Next Steps
Past Performance
How has Freddie Mac performed over the past 5 years?
35.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FMCC is currently unprofitable.
Growing Profit Margin: FMCC is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: FMCC is unprofitable, but has reduced losses over the past 5 years at a rate of 35.5% per year.
Accelerating Growth: Unable to compare FMCC's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: FMCC is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage industry (10.9%).
Return on Equity
High ROE: FMCC has a negative Return on Equity (79.08%), 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's level of assets compared to its equity 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, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if FMCC has an acceptable proportion of non-loan assets held.
Low Risk Deposits: FMCC has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if FMCC has an appropriate level of bad loans.
Next Steps
Dividend
What is Freddie Mac's current dividend yield, its reliability and sustainability?
24.11%
Forecast Dividend Yield
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 payouts.
High Dividend: Unable to evaluate FMCC's dividend yield against the top 25% of dividend payers, as the company has not reported any 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
Dividend Coverage: FMCC 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'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?
1.8yrs
Average management tenure
CEO
David Brickman (53yo)
0.75
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 ($USD5.63M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0.75yr | US$2.01m | 0.00011% $5.0k | |
| Senior VP | 0.33yr | US$984.41k | no data | |
| Executive Vice President of Investments & Capital Markets | 5.25yrs | US$3.31m | no data | |
| Executive VP | 1.25yrs | US$2.52m | no data | |
| Executive VP & Chief Risk Officer | 4.75yrs | US$2.67m | no data | |
| Executive VP & Chief Information Officer | 0.92yr | no data | no data | |
| Executive VP & Chief Administrative Officer | 9.67yrs | US$2.17m | no data | |
| Senior VP of External Relations & Corporate Communications | no data | no data | no data | |
| Senior VP & Chief Compliance Officer | 1.83yrs | no data | no data | |
| Senior VP | 2.25yrs | no data | no data |
1.8yrs
Average Tenure
57yo
Average Age
Experienced Management: FMCC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0.75yr | US$2.01m | 0.00011% $5.0k | |
| Independent Director | 4.75yrs | US$170.00k | no data | |
| Independent Director | 0.17yr | no data | no data | |
| Independent Director | 6.67yrs | US$175.00k | no data | |
| Independent Non-Executive Chairman | 1.17yrs | US$277.29k | no data | |
| Independent Director | 1.25yrs | US$181.46k | no data | |
| Independent Director | 2.33yrs | US$173.58k | no data | |
| Independent Director | 0.50yr | US$40.00k | no data | |
| Independent Director | 0.42yr | US$16.09k | no data | |
| Independent Director | 2.08yrs | US$160.00k | no data |
1.2yrs
Average Tenure
58.5yo
Average Age
Experienced Board: FMCC's board of directors are not considered experienced ( 1.2 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
- Exchange: OTCPK
- Founded: 1970
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: US$4.542b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FMCC | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Dec 1988 |
| FHL | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1988 |
| FHL | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Dec 1988 |
| 0IKZ | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 1988 |
| FMCC.I | OTCPK (Pink Sheets LLC) | PFD VAR RATE | US | USD | May 1996 | |
| FMCC.H | OTCPK (Pink Sheets LLC) | PFD 5.1% | US | USD | Sep 1998 | |
| FMCC.G | OTCPK (Pink Sheets LLC) | PFD FLTG RATE | US | USD | Oct 1998 | |
| FMCC.K | OTCPK (Pink Sheets LLC) | PFD 5.79% | US | USD | Jul 1999 | |
| FMCC.L | OTCPK (Pink Sheets LLC) | PFD 5.97% | US | USD | Dec 1999 | |
| FMCC.M | OTCPK (Pink Sheets LLC) | PFD VAR RATE | US | USD | Feb 2001 | |
| FMCC.P | OTCPK (Pink Sheets LLC) | PFD 6% NON-CUM | US | USD | Jun 2001 | |
| FMCC.J | OTCPK (Pink Sheets LLC) | PFD VAR RATE | US | USD | Jun 2001 | |
| FMCC.N | OTCPK (Pink Sheets LLC) | PFD VR RT NCUM | US | USD | Jun 2001 | |
| FMCC.O | OTCPK (Pink Sheets LLC) | PFD 5.81% NCUM | US | USD | Jun 2001 | |
| FMCK.P | OTCPK (Pink Sheets LLC) | PFD 5.70% | US | USD | Nov 2001 | |
| FREG.P | OTCPK (Pink Sheets LLC) | PFD 5.81% | US | USD | Jun 2002 | |
| FMCC | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REP 0.5 COM STK USD0.21 | AR | ARS | Nov 2002 | |
| FREJ.N | OTCPK (Pink Sheets LLC) | PFD PERP 5.81% | US | USD | Apr 2004 | |
| FMCC.T | OTCPK (Pink Sheets LLC) | PFD PERP 6.42% | US | USD | Jul 2006 | |
| FMCC.S | OTCPK (Pink Sheets LLC) | PFD PERP VAR | US | USD | Jul 2006 | |
| FMCK.O | OTCPK (Pink Sheets LLC) | PERP PFD 5.9% | US | USD | Oct 2006 | |
| FMCK.M | OTCPK (Pink Sheets LLC) | PFD PERP 5.57% | US | USD | Jan 2007 | |
| FMCK.N | OTCPK (Pink Sheets LLC) | PFD CUM 5.66% | US | USD | Apr 2007 | |
| FMCK.L | OTCPK (Pink Sheets LLC) | 6.02% NON CM PFD | US | USD | Jul 2007 | |
| FMCK.I | OTCPK (Pink Sheets LLC) | PFD6.55% SER Y | US | USD | Sep 2007 | |
| FMCK.J | OTCPK (Pink Sheets LLC) | PFD 8.375% NCM | US | USD | Nov 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 securities. It operates through three segments: Single-family Guarantee, Multifamily, and Capital Markets. The Single-family Guarantee segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit risk. This segment serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies, savings institutions, and non-depository financial institutions. The Multifamily segment engages in the purchase, sale, securitization, and guarantee of multifamily loans and securities through the issuance of multifamily K and SB certificates; issuing and guarantying other securitization products; issuing other credit risk transfer products; and provision of other mortgage-related guarantees, as well as post-construction financing to apartment project operators. The Capital Markets segment manages mortgage-related investments portfolio and treasury functions, including interest-rate risk management. It serves banks and other depository institutions, insurance companies, money managers, central banks, pension funds, state and local governments, real estate investment trusts, brokers and dealers, and lenders. Freddie Mac was founded in 1970 and is headquartered in McLean, Virginia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 07:26 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.