OTCPK:FNMA.I

Stock Analysis Report

Federal National Mortgage Association

Executive Summary

Federal National Mortgage Association provides a source of liquidity to the mortgage market and supports the availability and affordability of housing in the United States.

Snowflake

Fundamentals

Poor track record with weak fundamentals.


Similar Companies

Share Price & News

How has Federal National Mortgage Association's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.3%

FNMA.I

1.1%

US Mortgage

1.0%

US Market


1 Year Return

128.4%

FNMA.I

13.0%

US Mortgage

6.7%

US Market

Return vs Industry: FNMA.I exceeded the US Mortgage industry which returned 13% over the past year.

Return vs Market: FNMA.I exceeded the US Market which returned 6.7% over the past year.


Share holder returns

FNMA.IIndustryMarket
7 Day-3.3%1.1%1.0%
30 Day-8.3%-0.5%-1.8%
90 Day11.3%2.2%-1.8%
1 Year128.4%128.4%15.4%13.0%9.1%6.7%
3 Year275.8%275.8%40.4%30.9%46.1%36.6%
5 Year264.1%264.1%68.9%51.2%66.9%48.6%

Price Volatility Vs. Market

How volatile is Federal National Mortgage Association's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Federal National Mortgage Association undervalued based on future cash flows and its price relative to the stock market?

157.47x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: Insufficient data to calculate FNMA.I's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate FNMA.I's fair value to establish if it is undervalued.


Price Based on Earnings

PE vs Industry: FNMA.I is poor value based on its PE Ratio (157.5x) compared to the Mortgage industry average (14.5x).

PE vs Market: FNMA.I is poor value based on its PE Ratio (157.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: FNMA.I's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price Based on Value of Assets

PB vs Industry: FNMA.I has negative assets, so we can't compare its PB Ratio to the US Mortgage industry average.


Next Steps

Future Growth

How is Federal National Mortgage Association expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

-101.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: FNMA.I's earnings are forecast to decline over the next 3 years (-101.2% per year).

Earnings vs Market: FNMA.I's earnings are forecast to decline over the next 3 years (-101.2% per year).

High Growth Earnings: FNMA.I's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FNMA.I's revenue (0.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FNMA.I's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Federal National Mortgage Association performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FNMA.I has become profitable over the past 5 years, growing earnings by -6.3% per year.

Accelerating Growth: FNMA.I has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FNMA.I has become profitable in the last year, making it difficult to compare its past year earnings growth to the Mortgage industry (31.7%).


Return on Equity

High ROE: Whilst FNMA.I's Return on Equity (205.39%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: FNMA.I's Return on Assets is below or equal to the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate FNMA.I's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Federal National Mortgage Association'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

Inventory Level: FNMA.I has a low level of unsold assets or inventory.

Debt Coverage by Assets: FNMA.I's debt is not covered by short term assets (assets are 1x debt).


Financial Institutions Analysis

Asset Level: FNMA.I's level of assets compared to its equity is very high.

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

Low Risk Liabilities: FNMA.I reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FNMA.I has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FNMA.I has advanced significantly more loans than the customer deposits it holds.

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


Next Steps

Dividend

What is Federal National Mortgage Association's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

High Dividend: Unable to evaluate FNMA.I's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if FNMA.I's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: FNMA.I is not paying a notable dividend for .


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Federal National Mortgage Association's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Hugh Frater (63yo)

1yrs

Tenure

US$252,692

Compensation

Mr. Hugh R. Frater has been Chief Executive Officer of Federal National Mortgage Association (Fannie Mae) since March 26, 2019 and served as its Interim Chief Executive Officer from October 16, 2018 to Mar ...


CEO Compensation Analysis

Compensation vs. Market: Hugh has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.2yrs

Average Tenure

53yo

Average Age

Experienced Management: FNMA.I's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

61yo

Average Age

Experienced Board: FNMA.I's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • David Benson (59yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$3.39m
  • Hugh Frater (63yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: US$252.69k
  • Jeffery Hayward (63yo)

    Executive VP & Head of Multifamily Business

    • Tenure: 17.9yrs
    • Compensation: US$2.56m
  • Terry Theologides (52yo)

    Executive VP

    • Tenure: 0.6yrs
  • Andrew Bon Salle (53yo)

    Executive Vice President of Single-Family Mortgage Business

    • Tenure: 13.6yrs
    • Compensation: US$3.31m
  • Nancy Jardini

    SVP, Chief Compliance & Ethics Officer and Chief Office of Minority & Women Inclusion Officer

    • Tenure: 0yrs
  • Pete Bakel

    Investor Relations

    • Tenure: 0yrs
  • Kimberly Johnson (46yo)

    Executive VP & COO

    • Tenure: 1.6yrs
    • Compensation: US$2.37m
  • Celeste Brown (42yo)

    Executive VP & CFO

    • Tenure: 1.2yrs
    • Compensation: US$3.11m
  • Steve James

    Senior VP & Chief Marketing Officer

    • Tenure: 0.8yrs

Board Members

  • Hugh Frater (63yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: US$252.69k
  • Bobby Rayburn

    Chairman of National Advisory Council

    • Tenure: 0yrs
  • Amy Alving (57yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$170.00k
  • Antony Jenkins (58yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$74.84k
  • Jonathan Plutzik (64yo)

    Independent Chairman

    • Tenure: 0.8yrs
    • Compensation: US$180.39k
  • Mike Heid (61yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$170.00k
  • Diane Nordin (61yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$180.00k
  • Bob Herz (65yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$185.00k
  • Ryan Zanin (56yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$161.25k
  • Renee Glover (69yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$164.17k

Company Information

Federal National Mortgage Association's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Federal National Mortgage Association
  • Ticker: FNMA.I
  • Exchange: OTCPK
  • Founded: 1938
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$20.545b
  • Shares outstanding: 5.74b
  • Website: https://www.fanniemae.com

Number of Employees


Location

  • Federal National Mortgage Association
  • Midtown Center
  • 1100 15th Street, NW
  • Washington
  • District Of Columbia
  • 20005
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FNMAOTCPK (Pink Sheets LLC)YesCommon StockUSUSDAug 1970
0IL0LSE (London Stock Exchange)YesCommon StockGBUSDAug 1970
FNMA.POTCPK (Pink Sheets LLC)PFD F VAR RATEUSUSDApr 2000
FNMA.OOTCPK (Pink Sheets LLC)PFD G VAR RATEUSUSDAug 2000
FNMABASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1 ORD NPVARARSOct 2000
FNMA.MOTCPK (Pink Sheets LLC)PFD SER H %USUSDApr 2001
FNMA.GOTCPK (Pink Sheets LLC)PFD I 5.375%USUSDNov 2002
FNMA.NOTCPK (Pink Sheets LLC)PFD L 5.125%USUSDMay 2003
FNMA.LOTCPK (Pink Sheets LLC)PFD M 4.75%USUSDJun 2003
FNMF.MOTCPK (Pink Sheets LLC)5.10 PFD SER EUSUSDJun 2003
FNMA.KOTCPK (Pink Sheets LLC)PFD SER NUSUSDSep 2003
FNMF.NOTCPK (Pink Sheets LLC)PFD O VAR RATEUSUSDDec 2004
FNMF.OOTCUS (Other "Grey Market" OTC)PFD CV 5.375%USUSDMar 2005
FNMA.HOTCPK (Pink Sheets LLC)VAR PFD SER PUSUSDSep 2007
FNMA.IOTCPK (Pink Sheets LLC)PFD6.75% SER QUSUSDOct 2007
FNMA.JOTCPK (Pink Sheets LLC)PFD7.625%SER RUSUSDNov 2007
FNMA.SOTCPK (Pink Sheets LLC)PFD8.25%SER SUSUSDDec 2007
FNMA.TOTCPK (Pink Sheets LLC)PFD 8.25% SR TUSUSDMay 2008

Biography

Federal National Mortgage Association provides a source of liquidity to the mortgage market and supports the availability and affordability of housing in the United States. It securitizes mortgage loans or ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:21
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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