Freddie Mac (FMCC)
OTHER OTC:FMCC
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Freddie Mac
(OTC:FMCC)
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Rating:63Neutral
Price Target:
$7.50
▲(4.90% Upside)
Action:DowngradedDate:05/02/26
The score is primarily driven by strong recent financial performance (rapid TTM revenue growth, solid margins, and strong current cash generation), tempered by balance-sheet/leverage risk and data inconsistency in reported debt. Technicals are moderately supportive in the short term but weaker versus longer-term averages, while valuation contributes limited support due to unusable P/E and missing dividend yield.
Positive Factors
Cash generation
Sustained operating and free cash flow near $19.7B TTM provides durable internal funding for guarantee operations, portfolio management, and regulatory capital buffers. Strong cash generation supports ongoing business activities, risk-transfer funding, and strategic flexibility over the next several quarters.
Negative Factors
Extremely high leverage
Very high leverage makes the franchise highly sensitive to funding markets, interest-rate shifts, and asset-liability mismatches. Structural dependence on debt financing increases rollover and liquidity risk and constrains strategic options during stress periods despite strong cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained operating and free cash flow near $19.7B TTM provides durable internal funding for guarantee operations, portfolio management, and regulatory capital buffers. Strong cash generation supports ongoing business activities, risk-transfer funding, and strategic flexibility over the next several quarters.
Read all positive factors
Freddie Mac (FMCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.82B
Dividend YieldN/A
Average Volume (3M)3.10M
Price to Earnings (P/E)1.5
Beta (1Y)1.00
Revenue Growth7.62%
EPS Growth55.69%
CountryUS
Employees8,076
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding650,059,600
10 Day Avg. Volume2,510,705
30 Day Avg. Volume3,095,969
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.47
Price to Sales (P/S)0.25
P/FCF Ratio1.69
Enterprise Value/Market Cap706.88
Enterprise Value/Revenue25.51
Enterprise Value/Gross Profit25.51
Enterprise Value/Ebitda27.39
Forecast
1Y Price Target
$12.38Price Target Upside73.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)3.63
Revenue Forecast (FY)$24.65B
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 m...
How the Company Makes Money
Freddie Mac makes money primarily by (1) earning guarantee fees for taking on mortgage credit risk and (2) earning net interest income and investment income from its retained mortgage-related portfolio.
1) Guarantee fees (credit guarantee busines...
Freddie Mac Earnings Call Summary
Earnings Call Date:Oct 30, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
Freddie Mac's Q3 2024 earnings call presented strong financial growth and effective execution of its mission to support affordable housing, despite minor increases in delinquency rates and decreased noninterest income due to lower investment gains.Positive Updates
Strong Net Income Growth
Freddie Mac reported a net income of $3.1 billion for Q3 2024, representing a 16% increase year-over-year, driven by higher net revenues and lower noninterest expenses.
Negative Updates
Slight Increase in Delinquency Rates
The single-family serious delinquency rate increased by 4 basis points to 54 basis points. The multifamily delinquency rate increased by 1 basis point to 39 basis points.
Read all updates
Q3-2024 Updates
Positive
Negative
Strong Net Income Growth
Freddie Mac reported a net income of $3.1 billion for Q3 2024, representing a 16% increase year-over-year, driven by higher net revenues and lower noninterest expenses.
Read all positive updates
Company Guidance
In the third quarter of 2024, Freddie Mac reported robust financial performance, earning $3.1 billion, which marked a 16% year-over-year increase in net income. The company's net worth rose to $56 billion, supported by net revenues of $5.8 billion, up 3% from the previous year. This growth was driven by a 5% increase in net interest income, attributed to lower debt-related expenses and mortgage portfolio expansion, which reached $3.5 trillion. The single-family segment reported $2.6 billion in net income, with a 2% portfolio increase, while the multifamily segment achieved a 47% rise in net income, largely due to a credit reserve release. Freddie Mac continued its commitment to affordable housing, with 51% of home purchases supporting first-time buyers and 68% of financed multifamily units affordable to low-income families. Additionally, the company made strides in sustainability, introducing minimum lease standards for multifamily properties and offering forbearance options for homeowners affected by natural disasters.Freddie Mac Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
55
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 133.63B | 132.56B | 120.27B | 107.66B | 81.34B | 62.24B |
| Gross Profit | 133.63B | 132.56B | 120.27B | 107.66B | 81.34B | 62.24B |
| EBITDA | 124.49B | 121.78B | 112.92B | 100.02B | 77.06B | 59.15B |
| Net Income | 11.49B | 10.73B | 11.86B | 10.54B | 9.33B | 12.11B |
Balance Sheet | ||||||
| Total Assets | 3.51T | 3.50T | 3.39T | 3.28T | 3.21T | 3.03T |
| Cash, Cash Equivalents and Short-Term Investments | 81.61B | 90.74B | 61.30B | 5.04B | 12.19B | 12.47B |
| Total Debt | 3.41T | 3.41T | 3.30T | 3.21T | 3.16T | 2.98T |
| Total Liabilities | 3.43T | 3.43T | 3.33T | 3.23T | 3.17T | 3.00T |
| Stockholders Equity | 73.92B | 70.38B | 59.58B | 47.72B | 37.02B | 28.03B |
Cash Flow | ||||||
| Free Cash Flow | 19.67B | 19.37B | 6.63B | 7.62B | 11.93B | 16.35B |
| Operating Cash Flow | 19.67B | 19.37B | 6.63B | 7.62B | 11.93B | 16.35B |
| Investing Cash Flow | 19.70B | 4.74B | 9.62B | 44.25B | 11.40B | 24.25B |
| Financing Cash Flow | -39.69B | -24.32B | -16.74B | -52.21B | -27.11B | -54.34B |
Freddie Mac Technical Analysis
Neutral
7.15
Price Trends
6.18
Positive
7.81
Negative
8.77
Negative
Market Momentum
0.35
Negative
60.97
Neutral
81.53
Negative
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 7.15 is above the 20-day moving average (MA) of 6.05, above the 50-day MA of 6.18, and below the 200-day MA of 8.77, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 60.97 is Neutral, neither overbought nor oversold. The STOCH value of 81.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FMCC.
Freddie Mac Risk Analysis
Freddie Mac disclosed 2 risk factors in its most recent earnings report. Freddie Mac reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Freddie Mac Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $4.82B | 1.45 | 16.62% | ― | 7.62% | 55.69% | |
56 Neutral | $4.52B | 13.84 | 12.18% | 0.90% | 24.55% | 43.82% | |
52 Neutral | $5.69B | 1.55 | 15.25% | 8.64% | 32.51% | -15.92% | |
52 Neutral | $41.31B | 201.15 | -0.68% | ― | 47.48% | -156.32% | |
42 Neutral | $323.14M | -2.17 | -24.39% | ― | 21.97% | 21.88% |
* Financial Sector Average
FMCC
Freddie Mac
7.42
2.14
40.53%
PFSI
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87.07
-9.48
-9.82%
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Freddie Mac Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Freddie Mac Launches Tender Offer for STACR CRT Notes
Neutral
May 4, 2026
On May 4, 2026, Freddie Mac launched a fixed-price cash tender offer to purchase any and all of several outstanding STACR credit risk transfer note classes for which it is the sole beneficial trust owner. The offer covers multiple STACR REMIC trus...
Executive/Board ChangesRegulatory Filings and Compliance
FHFA Approves Revised Compensation Package for Freddie Mac CFO
Neutral
Feb 6, 2026
On February 5, 2026, the Federal Housing Finance Agency, acting as conservator, approved changes to the compensation package of Freddie Mac Executive Vice President and Chief Financial Officer James Whitlinger under the company’s Executive M...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
FHFA Re-Elects Freddie Mac Board, Extending Governance Continuity
Neutral
Feb 6, 2026
On February 3, 2026, under the authority it has exercised since being appointed Conservator of Freddie Mac in 2008, the Federal Housing Finance Agency re-elected all eligible, then-current members of Freddie Mac’s Board of Directors for anot...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.