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Federal National Mortgage Association

Market Cap

US$12.2b

Last Updated

2021/05/17 22:38 UTC

Data Sources

Company Financials +

Executive Summary

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


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FNMA's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

FNMA

3.2%

US Mortgage

-0.6%

US Market


1 Year Return

26.8%

FNMA

53.3%

US Mortgage

46.0%

US Market

Return vs Industry: FNMA underperformed the US Mortgage industry which returned 54.9% over the past year.

Return vs Market: FNMA underperformed the US Market which returned 50.8% over the past year.


Shareholder returns

FNMAIndustryMarket
7 Day1.9%3.2%-0.6%
30 Day-10.9%-6.7%-1.8%
90 Day12.7%-7.1%0.2%
1 Year26.8%26.8%57.6%53.3%48.4%46.0%
3 Year44.9%44.9%32.8%22.1%60.5%50.4%
5 Year1.4%1.4%80.4%54.7%125.9%100.9%

Long-Term 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?

219.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: FNMA is poor value based on its PE Ratio (219.2x) compared to the US Mortgage industry average (12.8x).

PE vs Market: FNMA is poor value based on its PE Ratio (219.2x) compared to the US market (19.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Future Growth

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

-115.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FNMA's earnings are forecast to decline over the next 3 years (-115.1% per year).

Earnings vs Market: FNMA's earnings are forecast to decline over the next 3 years (-115.1% per year).

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

Revenue vs Market: FNMA's revenue is expected to decline over the next 3 years (-7.6% per year).

High Growth Revenue: FNMA's revenue is forecast to decline over the next 3 years (-7.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

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

21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FNMA has high quality earnings.

Growing Profit Margin: FNMA's current net profit margins (0.2%) are lower than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: FNMA has become profitable over the past 5 years, growing earnings by 21.8% per year.

Accelerating Growth: FNMA'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 had negative earnings growth (-58.4%) over the past year, making it difficult to compare to the Mortgage industry average (24.4%).


Return on Equity

High ROE: Whilst FNMA's Return on Equity (54.05%) is outstanding, this metric is skewed due to their high level of debt.


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's Assets to Equity ratio (134.7x) is very high.

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

Low Risk Liabilities: FNMA 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 has an appropriate level of Loans to Assets ratio.

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

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


Dividend

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


Dividend Yield vs Market

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

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


Current Payout to Shareholders

Dividend Coverage: FNMA 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'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?

2.7yrs

Average management tenure


CEO

Hugh Frater (64 yo)

2.58yrs

Tenure

US$648,000

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 ($USD648.00K) is below average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

Experienced Management: FNMA's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: FNMA's board of directors are considered experienced (5.3 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
  • Exchange: OTCPK
  • Founded: 1938
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$12.224b
  • 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


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 Analysis2021/05/17 22:38
End of Day Share Price2021/05/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.