Freddie Mac (FMCC) AI Stock Analysis

• Market Cap: $4.88B
• Dividend Yield: N/A
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): 3206.3
• Beta (1Y): 0.49
• Revenue Growth: 12.36%
• EPS Growth: 37.92%
• Country: US
• Employees: 8,076
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Mortgages
• EPS (TTM): -0.01
• Shares Outstanding: 650,059,600
• 10 Day Avg. Volume: 1,138,314
• 30 Day Avg. Volume: 2,466,685
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.66
• Enterprise Value/Market Cap: 0.01
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $4.50
• Price Target Upside: -38.52% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $9.00 ▲(22.95%Upside)

Freddie Mac's overall stock score is driven primarily by its strong financial performance and positive technical indicators. The company's robust revenue growth and debt-free position bolster its financial health. However, the low equity ratio and negative P/E ratio highlight potential risks and valuation concerns, respectively. The absence of earnings call data and corporate events reduces the comprehensiveness of the analysis.

Freddie Mac Business Overview & Revenue Model

Company Description

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. The company purchases single-family and multifamily residential mortgage loans originated by lenders, as well as invests in mortgage loans and mortgage-related securities. It operates through two segments, Single-family and Multifamily. The Single-family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. 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 of 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. It 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 a range of lenders. The company was founded in 1970 and is headquartered in McLean, Virginia.

How the Company Makes Money

Freddie Mac generates revenue primarily through two key streams: guarantee fees and investment income. Guarantee fees are collected from lenders in exchange for assuming the credit risk on the mortgages underlying the securities it issues. These fees are a significant source of income as they provide a steady stream of revenue over the life of the mortgage. Investment income is earned from the company's retained mortgage portfolio, which includes investments in mortgage loans and mortgage-related securities. Freddie Mac's earnings are also influenced by interest rate fluctuations, credit risk management, and housing market conditions. Additionally, the company benefits from partnerships with various financial institutions and government agencies, which help facilitate its operations in the secondary mortgage market.

Freddie Mac Financial Statement Overview

Summary

Freddie Mac demonstrates strong financial health with robust revenue and net income growth. The company's debt-free position enhances its stability, although its low equity ratio suggests high leverage, which may pose risks in unfavorable market conditions. Cash flows remain stable but indicate potential room for improvement in cash conversion efficiency.

Income Statement

Freddie Mac has shown impressive revenue growth with a recent increase from $22.1 billion to $23.9 billion, representing an 8.2% growth rate. The net profit margin has expanded significantly, reaching 74% in the latest report, indicating strong profitability. However, the absence of EBIT and EBITDA margins in the most recent report limits the analysis of operational efficiency.

Balance Sheet

The balance sheet is strong with zero total debt reported in the latest period, reflecting excellent leverage management. The equity ratio stands at 1.76%, which is low, indicating high asset leverage. Return on equity is robust at 29.7%, showcasing effective equity utilization. However, the low equity ratio could pose risks during economic downturns.

Cash Flow

Freddie Mac's cash flow exhibits stability with consistent free cash flow, though it showed a decrease from $7.6 billion to $6.6 billion year over year. The operating cash flow to net income ratio is relatively low, suggesting potential challenges in converting profits into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.91B	21.23B	21.26B	21.95B	16.66B
Gross Profit	23.44B	21.23B	19.42B	21.95B	16.66B
EBITDA	112.92B	13.20B	77.06B	15.20B	9.23B
Net Income	11.86B	10.54B	9.33B	12.11B	7.33B
Balance Sheet
Total Assets	3.39T	3.28T	3.21T	3.03T	2.63T
Cash, Cash Equivalents and Short-Term Investments	61.30B	5.04B	12.19B	12.47B	21.88B
Total Debt	3.30T	3.21T	3.15T	2.98T	2.59T
Total Liabilities	3.33T	3.23T	3.17T	3.00T	2.61T
Stockholders Equity	59.58B	47.72B	37.02B	28.03B	16.41B
Cash Flow
Free Cash Flow	6.63B	7.62B	11.93B	16.35B	907.00M
Operating Cash Flow	6.63B	7.62B	11.93B	16.35B	907.00M
Investing Cash Flow	9.62B	44.25B	11.40B	24.25B	-83.36B
Financing Cash Flow	-16.74B	-52.21B	-27.11B	-54.34B	101.15B

Freddie Mac Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMCC, the sentiment is Neutral. The current price of 7.32 is below the 20-day moving average (MA) of 7.87, above the 50-day MA of 7.22, and above the 200-day MA of 4.75, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 30.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FMCC.

Freddie Mac Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMCC	72 Outperform	$4.88B	3,206.25	21.06%	―	12.36%	37.92%
COOP	69 Neutral	$9.17B	16.65	12.39%	―	6.44%	-7.86%
Sector *	64 Neutral	$6.54B	11.13	7.19%	5.10%	23.85%	5.18%
PFSI	63 Neutral	$5.09B	15.13	9.32%	1.22%	23.79%	121.61%
GHLD	57 Neutral	$1.23B	28.57	3.71%	2.52%	42.92%	64.72%
RKT	54 Neutral	$28.00B	68.51	0.45%	―	24.58%	-88.86%
UWMC	48 Neutral	$6.73B	37.74	-5.74%	9.50%	9.19%	-171.38%

Freddie Mac Corporate Events

Freddie Mac Announces Executive Vice President’s Retirement

On June 23, 2025, Freddie Mac announced that Heidi L. Mason, its Executive Vice President and General Counsel, will retire effective September 1, 2025. This leadership change may impact the company’s legal strategies and operations as it navigates the evolving housing market landscape.

The most recent analyst rating on (FMCC) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Freddie Mac stock, see the FMCC Stock Forecast page.

Freddie Mac Extends Interim CEO Tenure

On June 11, 2025, Freddie Mac announced that Michael T. Hutchins will continue to serve as the President and Interim Chief Executive Officer until a permanent CEO is appointed or until September 20, 2025. This extension ensures stability in leadership during a transitional period for the company, potentially impacting its strategic operations and stakeholder confidence.

The most recent analyst rating on (FMCC) stock is a Sell with a $0.75 price target. To see the full list of analyst forecasts on Freddie Mac stock, see the FMCC Stock Forecast page.

Freddie Mac CEO Compensation Changes Approved

On June 13, 2025, the Federal Housing Finance Agency approved changes to the compensation of Michael T. Hutchins, President and Interim CEO of Freddie Mac. His base salary remains at $600,000, while his fixed and at-risk deferred salaries are set to increase in 2025 and 2026, which may impact the company’s executive management compensation structure.

The most recent analyst rating on (FMCC) stock is a Sell with a $0.75 price target. To see the full list of analyst forecasts on Freddie Mac stock, see the FMCC Stock Forecast page.

Freddie Mac Announces Cash Tender Offer for STACR Notes

On April 30, 2025, Freddie Mac announced a fixed-price cash tender offer for the purchase of certain STACR Notes, with the offer set to expire on May 6, 2025. This move, involving BofA Securities, Wells Fargo Securities, and CastleOak Securities as dealer managers, aims to manage Freddie Mac’s credit risk exposure and optimize its financial operations.