OTCPK:FNMA.K

Stock Analysis Report

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Federal National Mortgage Association

Executive Summary

Federal National Mortgage Association provides a source of financing for mortgages in the United States.


Snowflake Analysis

Questionable 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

Stable Share Price: FNMA.K has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

FNMA.K

-8.9%

US Mortgage

2.6%

US Market


1 Year Return

-28.0%

FNMA.K

-19.9%

US Mortgage

15.4%

US Market

Return vs Industry: FNMA.K underperformed the US Mortgage industry which returned -20.7% over the past year.

Return vs Market: FNMA.K underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

FNMA.KIndustryMarket
7 Day-0.8%-8.9%2.6%
30 Day6.1%-1.6%6.1%
90 Day24.6%19.7%16.6%
1 Year-28.0%-28.0%-17.9%-19.9%17.8%15.4%
3 Year24.2%24.2%-5.0%-11.6%43.9%34.7%
5 Year51.4%51.4%5.9%-5.4%76.2%57.3%

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 compared to its fair value and its price relative to the market?

143.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FNMA.K's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FNMA.K's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FNMA.K is poor value based on its PE Ratio (143.3x) compared to the US Mortgage industry average (11.1x).

PE vs Market: FNMA.K is poor value based on its PE Ratio (143.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FNMA.K 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 forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-86.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FNMA.K's earnings are forecast to decline over the next 3 years (-86.6% per year).

Earnings vs Market: FNMA.K's earnings are forecast to decline over the next 3 years (-86.6% per year).

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

Revenue vs Market: FNMA.K's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: FNMA.K's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FNMA.K'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?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FNMA.K has high quality earnings.

Growing Profit Margin: FNMA.K's current net profit margins (0.4%) are lower than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: FNMA.K has become profitable over the past 5 years, growing earnings by 6% per year.

Accelerating Growth: FNMA.K's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FNMA.K had negative earnings growth (-36.4%) over the past year, making it difficult to compare to the Mortgage industry average (7.1%).


Return on Equity

High ROE: Whilst FNMA.K's Return on Equity (68.79%) is outstanding, this metric is skewed due to their high level of debt.


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


Financial Institutions Analysis

Asset Level: FNMA.K's Assets to Equity ratio (228.2x) is very high.

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

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

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: FNMA.K is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FNMA.K'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?

2.2yrs

Average management tenure


CEO

Hugh Frater (64 yo)

1.83yrs

Tenure

US$671,104

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's total compensation ($USD671.10K) is below average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Hugh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hugh Frater
CEO & Director1.83yrsUS$671.10kno data
David Benson
President2yrsUS$3.63mno data
Celeste Brown
Executive VP & CFO2yrsUS$3.33mno data
Jeffery Hayward
Executive VP & Head of Multifamily Business18.75yrsUS$2.83m0.00026%
$ 28.8k
Andrew Bon Salle
Executive Vice President of Single-Family Mortgage Business14.42yrsUS$3.27mno data
Kimberly Johnson
Executive VP & COO2.42yrsUS$2.37m0.00012%
$ 13.3k
Pete Bakel
Investor Relationsno datano datano data
Nancy Jardini
SVP, Chief Compliance & Ethics Officer and Chief Office of Minority & Women Inclusion Officerno datano datano data
Stergios Theologides
Executive VP1.42yrsno datano data
Steve James
Senior VP & Chief Marketing Officer1.58yrsno datano data
Elcio Barcelos
Senior VP & Chief Human Resources Officer2.58yrsno datano data
Mark Winer
Senior Vice President for Business Analytics & Decisions15.58yrsno datano data

2.2yrs

Average Tenure

54yo

Average Age

Experienced Management: FNMA.K's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hugh Frater
CEO & Director1.83yrsUS$671.10kno data
Ralph Vinciguerra
Member of National Advisory Council16.42yrsno datano data
David Wilson
Member of National Advisory Council16.42yrsno datano data
James Rayburn
Chairman of National Advisory Councilno datano datano data
Amy Alving
Independent Director6.83yrsUS$170.00kno data
Jonathan Plutzik
Independent Chairman1.67yrsUS$290.00kno data
Michael Heid
Independent Director4.25yrsUS$173.63kno data
Diane Nordin
Independent Vice Chairman1.33yrsUS$180.00kno data
Robert Herz
Independent Director9.17yrsUS$188.50kno data
Ryan Zanin
Independent Director3.92yrsUS$175.00kno data
Renee Glover
Independent Director4.58yrsUS$170.00kno data
Manuel Sánchez Rodríguez
Independent Director1.92yrsUS$165.00kno data

4.6yrs

Average Tenure

63yo

Average Age

Experienced Board: FNMA.K's board of directors are considered experienced (4.6 years average tenure).


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

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


Key Information

  • Name: Federal National Mortgage Association
  • Ticker: FNMA.K
  • Exchange: OTCPK
  • Founded: 1938
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$11.076b
  • 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 financing for mortgages in the United States. It securitizes mortgage loans originated by lenders into Fannie Mae mortgage-backed securities (Fann ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 00:20
End of Day Share Price2020/08/03 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.