Federal National Mortgage Association (FNMA) AI Stock Analysis

• Market Cap: $8.47B
• Dividend Yield: N/A
• Average Volume (3M): 10.74M
• Price to Earnings (P/E): 14620.0
• Beta (1Y): 0.67
• Revenue Growth: 7.43%
• EPS Growth: N/A
• Country: US
• Employees: 8,200
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Mortgages
• EPS (TTM): 0.00
• Shares Outstanding: 1,158,087,500
• 10 Day Avg. Volume: 10,351,684
• 30 Day Avg. Volume: 10,737,169
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.24
• Price to Cash Flow (P/CF): -0.30
• P/FCF Ratio: 0.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.50
• Price Target Upside: -63.87% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

Federal National Mortgage Association exhibits solid financial performance with strong revenue growth and profitability, although liquidity concerns due to negative cash flows are evident. The stock shows upward technical momentum but is heavily overvalued based on its P/E ratio, limiting its appeal. The absence of recent earnings call and corporate events data means these aspects do not contribute to the score.

Federal National Mortgage Association Business Overview & Revenue Model

Company Description

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 (Fannie Mae MBS). The company operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S. Department of Agriculture, manufactured housing mortgage loans, and other mortgage-related securities. This segment also provides single-family mortgage servicing, as well as credit risk and loss management services. The Multifamily segment securitizes multifamily mortgage loans into Fannie Mae MBS; purchases multifamily mortgage loans; and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also issues structured MBS backed by Fannie Mae multifamily MBS; buys and sells multifamily agency mortgage-backed securities; invests in low-income housing tax credit (LIHTC) multifamily projects; and offers delegated underwriting and servicing, as well as multifamily mortgage, and credit risk and loss management services. The company serves mortgage banking companies, savings and loan associations, savings banks, commercial banks, credit unions, community banks, insurance companies, private mortgage originators, and state and local housing finance agencies. Federal National Mortgage Association was founded in 1938 and is headquartered in Washington, the District of Columbia.

How the Company Makes Money

Fannie Mae makes money primarily through its role in the secondary mortgage market. The company purchases mortgage loans from lenders, pools them together, and sells them as mortgage-backed securities (MBS) to investors. These securities provide a steady income stream through mortgage payments made by borrowers. Fannie Mae earns revenue from the guarantee fees it charges lenders for ensuring timely payment on these securities, as well as from the interest income on the mortgage loans it retains in its portfolio. Additionally, it earns money through strategic partnerships and collaborations with financial institutions that facilitate the origination and securitization of mortgage loans. Fannie Mae's earnings are significantly influenced by factors such as interest rates, housing market conditions, and government policies affecting the mortgage industry.

Federal National Mortgage Association Financial Statement Overview

Summary

Federal National Mortgage Association displays strong revenue growth and profitability, supported by an improved equity position and reduced leverage. However, the recent negative operating and free cash flows suggest potential liquidity challenges. The company's ability to manage its cash flows effectively will be crucial for sustaining its growth trajectory.

Income Statement

Federal National Mortgage Association shows a robust revenue growth over the years, notably from $21.69 billion in 2019 to $150.57 billion in 2024. The net profit margin for 2024 was a solid 16.98%, indicating strong profitability. However, EBIT has fluctuated, with a drop to $0 in 2024, suggesting potential volatility in operational efficiency.

Balance Sheet

The company maintains a strong equity position with stockholders' equity growing from $14.61 billion in 2019 to $94.66 billion in 2024. The debt-to-equity ratio has improved significantly due to reduced total debt, reflecting reduced financial risk. However, the equity ratio is relatively low at 2.18%, indicating high leverage.

Cash Flow

Operating cash flow has been volatile, turning negative in 2024, which could pose challenges in liquidity management. Free cash flow also turned negative in 2024, raising concerns about cash generation. However, the company has managed substantial investing cash flows, demonstrating the ability to sustain investment activities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
150.57B	31.94B	30.72B	31.45B	23.73B
	Gross Profit
150.57B	31.94B	27.35B	28.38B	21.06B
	EBIT
119.71B	28.33B	94.19B	27.95B	14.88B
	EBITDA
0.00	0.00	88.46B	27.95B	14.88B
	Net Income Common Stockholders
16.98B	17.41B	12.92B	22.18B	11.80B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
78.81B	68.71B	123.38B	43.28B	40.03B
	Total Assets
4.35T	4.33T	4.31T	4.23T	3.99T
	Total Debt
4.23T	4.22T	4.22T	4.16T	3.94T
	Net Debt
4.19T	4.19T	4.16T	4.12T	3.90T
	Total Liabilities
4.26T	4.25T	4.25T	4.18T	3.96T
	Stockholders Equity
94.66B	77.68B	60.28B	47.36B	25.26B
Cash Flow		Free Cash Flow
-10.52B	11.88B	41.13B	43.67B	-78.92B
	Operating Cash Flow
-10.52B	11.88B	43.83B	47.21B	-72.93B
	Investing Cash Flow
157.79B	99.15B	90.13B	90.85B	26.68B
	Financing Cash Flow
-137.17B	-130.17B	-154.74B	-145.05B	100.47B

Federal National Mortgage Association Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNMA, the sentiment is Positive. The current price of 6.92 is above the 20-day moving average (MA) of 6.13, above the 50-day MA of 6.30, and above the 200-day MA of 2.93, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 62.73 is Neutral, neither overbought nor oversold. The STOCH value of 92.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FNMA.

Federal National Mortgage Association Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGNC	69 Neutral	$9.09B	10.89	9.58%	14.21%	384.69%	963700.00%
NLY	68 Neutral	$12.37B	13.33	8.40%	12.03%	13.33%	―
FMCC	66 Neutral	$4.07B	3,912.50	22.10%	―	11.89%	―
Sector *	64 Neutral	$14.60B	10.27	8.71%	4.21%	16.53%	-11.93%
FNMA	62 Neutral	$8.47B	14,620.00	19.70%	―	7.43%	―
TWO	62 Neutral	$1.43B	5.80	13.74%	13.10%	28.33%	―
IVR	58 Neutral	$562.65M	13.54	7.97%	18.29%	137.36%	―

Federal National Mortgage Association Corporate Events

Fannie Mae Board Reshuffle: New Leadership Appointed

On March 17, 2025, the U.S. Federal Housing Finance Agency, acting as conservator, removed several members from Fannie Mae’s Board of Directors and appointed new ones, including Clinton Jones, William J. Pulte, Christopher Stanley, and Michael Stucky, with Pulte serving as Chairman. This reshuffling of the board is significant as it may impact Fannie Mae’s governance and strategic direction while it remains under conservatorship, though specific committee assignments and potential conflicts of interest are yet to be disclosed.

Fannie Mae Aligns Executive Compensation with New FHFA Goals

On January 31, 2025, the Federal Housing Finance Agency (FHFA) revised its 2025 scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions, establishing new corporate performance objectives. The scorecard emphasizes fostering liquid, competitive, and equitable housing finance markets, conducting business safely, and achieving compliance with statutory mandates. A notable change is the introduction of deferred salary for executives, which is at risk based on company performance against these objectives. This initiative aims to enhance the affordability, efficiency, resiliency, and sustainability of the housing market, with an increased focus on mission-driven loans and supporting underserved communities. These changes are expected to impact the entities’ approach to risk management, housing affordability, and their overall market operations.