OTCPK:FMCK.J

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Weak fundamentals or lack of information.


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: FMCK.J has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

FMCK.J

-12.4%

US Mortgage

0.5%

US Market


1 Year Return

-18.8%

FMCK.J

-18.5%

US Mortgage

18.0%

US Market

Return vs Industry: FMCK.J matched the US Mortgage industry which returned -18.5% over the past year.

Return vs Market: FMCK.J underperformed the US Market which returned 18% over the past year.


Shareholder returns

FMCK.JIndustryMarket
7 Day4.0%-12.4%0.5%
30 Day-2.5%-2.4%4.5%
90 Day24.9%28.8%19.7%
1 Year-18.8%-18.8%-16.3%-18.5%20.5%18.0%
3 Year38.8%38.8%-1.4%-8.5%46.3%36.8%
5 Year90.8%90.8%10.7%-1.7%87.2%66.8%

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 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 our analysis of FMCK.J's management and see if the CEO's compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • 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?

99.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMCK.J is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FMCK.J is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FMCK.J is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FMCK.J's revenue (6.5% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: FMCK.J's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Freddie Mac performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMCK.J is currently unprofitable.

Growing Profit Margin: FMCK.J is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FMCK.J is unprofitable, but has reduced losses over the past 5 years at a rate of 12.7% per year.

Accelerating Growth: Unable to compare FMCK.J's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FMCK.J is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage industry (7.2%).


Return on Equity

High ROE: FMCK.J has a negative Return on Equity (54.63%), 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: FMCK.J's Assets to Equity ratio (204.1x) is very high.

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

Low Risk Liabilities: FMCK.J reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if FMCK.J has an appropriate level of Loans to Assets ratio.

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FMCK.J's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FMCK.J'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 FMCK.J's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: FMCK.J is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FMCK.J'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?

2.4yrs

Average management tenure


CEO

David Brickman (54 yo)

1.08yrs

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 ($USD2.01M) is below average for companies of similar size in the US market ($USD7.19M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Brickman
CEO, President & Director1.08yrsUS$2.01m0.00011%
$ 7.6k
Michael Hutchins
Executive Vice President of Investments & Capital Markets5.58yrsUS$3.31mno data
Ricardo Anzaldua-Montoya
Executive VP1.58yrsUS$2.52mno data
Anil Hinduja
Executive VP & Chief Risk Officer5.08yrsUS$2.67mno data
Christian Lown
Executive VP & CFO0.17yrno datano data
Frank Nazzaro
Executive VP & Chief Information Officer1.25yrsno datano data
Jerry Weiss
Executive VP & Chief Administrative Officer10yrsUS$2.17mno data
Jeffrey Markowitz
Senior VP of External Relations & Corporate Communicationsno datano datano data
John Krenitsky
Senior VP & Chief Compliance Officer2.17yrsno datano data
Jacqueline Welch
Senior VP2.58yrsno datano data
Mark Hanson
Senior Vice President8.58yrsno datano data
James Bowden
Senior Vice President of Homestepno datano datano data

2.4yrs

Average Tenure

58yo

Average Age

Experienced Management: FMCK.J's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Brickman
CEO, President & Director1.08yrsUS$2.01m0.00011%
$ 7.6k
Lance Drummond
Independent Director5.08yrsUS$170.00kno data
Mark Grier
Independent Director0.50yrno datano data
Saiyid Naqvi
Independent Director7yrsUS$175.00kno data
Sara Mathew
Independent Non-Executive Chairman1.5yrsUS$277.29kno data
Aleem Gillani
Independent Director1.58yrsUS$181.46kno data
Grace Huebscher
Independent Director2.67yrsUS$173.58kno data
Kathleen Casey
Independent Director0.83yrUS$40.00kno data
Mark Bloom
Independent Director0.75yrUS$16.09kno data
Christopher Herbert
Independent Director2.42yrsUS$160.00kno data

1.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: FMCK.J's board of directors are not considered experienced ( 1.5 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: FMCK.J
  • Exchange: OTCPK
  • Founded: 1970
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$6.910b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/15 05:38
End of Day Share Price2020/08/14 00:00
Earnings2020/06/30
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.