Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Freddie Mac. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Freddie Mac's earnings available for a low price, and how does
this compare to other companies in the same industry?
Freddie Mac's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Freddie Mac's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Freddie Mac's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Donald H. Layton, also known as Don, ACIS, LLBm has been the Chief Executive Officer at Federal Home Loan Mortgage Corporation since May 21, 2012. Mr. Layton has been a Senior Advisor of NewOak Capital LLC since March 2010. He has over 35 years of experience in financial services and as a corporate leader. Mr. Layton served as the Head of Finance and Risk Management at JPMorgan Chase & Co. since June 2004 and its Head of Technology since July 2003. He served as an Executive Chairman and Chief Executive Officer of E*TRADE Financial Corporation from December 2007 to December 31, 2009 and from March 3, 2008 to December 31, 2009 respectively. He served as the Head of Chase Financial Services of JPMorgan Chase & Co from 2002 to 2004 and Treasury & Securities Services of JPMorgan Chase & Co from 1999 to 2004 and Member for Office of the Chairman at JPMorgan Chase & Co until June 2004. Mr. Layton served as a Co-Head of the Investment Bank at JPMorgan until May 2002. Mr. Layton served as a Co-Chief Executive Officer of JPMorgan, the investment bank of JPMorgan Chase & Co. from 2000 to 2002.He served as Head of Global Markets, the worldwide capital markets and trading division, of the predecessor Chase Manhattan Corporation from 1996 to 2000. He has over 32 years of experience in financial services. Mr. Layton began his career in 1975 at Manufacturers Hanover Trust (a predecessor firm to J.P. Morgan Chase & Co) and served as its Senior Vice President in 1983. At his retirement from JPMorgan Chase, he was responsible for including consumer, small business and middle market banking and wholesale operating services. At the time of the merger of Manufacturers Hanover Trust with Chemical Bank in 1992, he was in charge of all capital markets and trading activities, as well as supervising the international branch system. He served as a Special Advisor to the E*TRADE Financial Board of Directors. He was responsible for Chase's worldwide capital markets and trading activities, including foreign exchange, risk management products, emerging markets and fixed income. Since 1999, he has also supervised Chase's wholesale operating services business. Mr. Layton serves as the Chairman of CHIPCo Inc. He serves as the Chairman of The Partnership for the Homeless. He served as a Vice Chairman of Chase and responsible for capital markets and trading activities. He served as a Vice Chairman of JPMorgan Chase & Co. He served as a Vice Chairman of Chemical Bank since 1995. He has been Director of Federal Home Loan Mortgage Corporation since May 21, 2012. Mr. Layton serves as a Director of MasterCard International, Private Export Funding Corporation, Foreign Policy Association and International Executive Service Corps as well as the Financial Services Roundtable and BITS, its technology affiliate. He served as a Director of American International Group Inc. since April 2010 until May 2012. He served as a Director of MasterCard Worldwide Inc. since October 2002. He served as a Director of Assured Guaranty Ltd. from May 5, 2006 to May 10, 2012. He served as a Director of E*Trade Bank and E*TRADE Financial Corp. until December 2009. Mr. Layton served as a Senior Advisor to The Securities Industry and Financial Markets Association from 2006 to 2008, a member of the Federal Reserve Bank of New York's International Capital Markets Advisory Committee and the Massachusetts Institute of Technology Visiting Committee for Economics. He serves as a Member of the International Monetary Fund Capital Markets Consultative Group, the Federal Reserve Bank of New York's International Capital Markets Advisory Committee and the Massachusetts Institute of Technology Visiting Committee for Economics. Mr. Layton holds a Bachelor and Master of Science Degrees in Economics simultaneously from the Massachusetts Institute of Technology in 1972 and an MBA from Harvard University. Mr. Layton graduated a Baker Scholar from Harvard University in 1974.
Don's compensation has been consistent with company performance over the past year.
Don's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Freddie Mac management team is about average.
CEO & Director
Executive VP & CFO
Executive Vice President of Investments & Capital Markets
Executive Vice President of Single-Family Business
Executive VP & Chief Information Officer
Executive VP & Chief Administrative Officer
Senior VP of External Relations & Corporate Communications
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Freddie Mac board of directors is about average.
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 in 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 activities in 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 invests principally in mortgage-related investments portfolio and single-family performing and re-performing loans. This segment 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.
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