OTCPK:FMCC

Stock Analysis Report

Executive Summary

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


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

FMCCIndustryMarket
7 Day4.4%-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

NamePositionTenureCompensationOwnership
David Brickman
CEO, President & Director0.75yrUS$2.01m0.00011% $5.0k
Donald Kish
Senior VP0.33yrUS$984.41kno data
Michael Hutchins
Executive Vice President of Investments & Capital Markets5.25yrsUS$3.31mno data
Ricardo Anzaldua-Montoya
Executive VP1.25yrsUS$2.52mno data
Anil Hinduja
Executive VP & Chief Risk Officer4.75yrsUS$2.67mno data
Frank Nazzaro
Executive VP & Chief Information Officer0.92yrno datano data
Jerry Weiss
Executive VP & Chief Administrative Officer9.67yrsUS$2.17mno data
Jeffrey Markowitz
Senior VP of External Relations & Corporate Communicationsno datano datano data
John Krenitsky
Senior VP & Chief Compliance Officer1.83yrsno datano data
Jacqueline Welch
Senior VP2.25yrsno datano 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

NamePositionTenureCompensationOwnership
David Brickman
CEO, President & Director0.75yrUS$2.01m0.00011% $5.0k
Lance Drummond
Independent Director4.75yrsUS$170.00kno data
Mark Grier
Independent Director0.17yrno datano data
Saiyid Naqvi
Independent Director6.67yrsUS$175.00kno data
Sara Mathew
Independent Non-Executive Chairman1.17yrsUS$277.29kno data
Aleem Gillani
Independent Director1.25yrsUS$181.46kno data
Grace Huebscher
Independent Director2.33yrsUS$173.58kno data
Kathleen Casey
Independent Director0.50yrUS$40.00kno data
Mark Bloom
Independent Director0.42yrUS$16.09kno data
Christopher Herbert
Independent Director2.08yrsUS$160.00kno 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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 07:26
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.