Federal National Mortgage Association (FNMA) AI Stock Analysis

• Market Cap: $12.52B
• Dividend Yield: N/A
• Average Volume (3M): 5.52M
• Price to Earnings (P/E): 5560.0
• Beta (1Y): 0.51
• Revenue Growth: 4.55%
• EPS Growth: N/A
• Country: US
• Employees: 8,200
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.66
• Shares Outstanding: 1,158,087,500
• 10 Day Avg. Volume: 4,486,488
• 30 Day Avg. Volume: 5,519,745
• PEG Ratio: 0.00
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -1.83
• Enterprise Value/Market Cap: 349.47
• Enterprise Value/Revenue: 27.63
• Enterprise Value/Gross Profit: 203.35
• Enterprise Value/Ebitda: 52.81
• 1Y Price Target: $13.33
• Price Target Upside: 25.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.55
• Revenue Forecast (FY): $29.76B

• Rating: 65 Neutral
• Price Target: $12.50 ▲(17.26% Upside)

Federal National Mortgage Association's strong financial performance and strategic initiatives are offset by liquidity challenges and valuation concerns. Technical indicators suggest mixed momentum, with short-term bearish signals but longer-term support. The earnings call provided positive insights into efficiency and partnerships, though credit losses remain a concern.

Federal National Mortgage Association Business Overview & Revenue Model

Company Description

The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a government-sponsored enterprise (GSE) that plays a pivotal role in the U.S. housing finance system. Established in 1938, Fannie Mae's primary mission is to enhance the availability and affordability of mortgage financing for low-to-moderate-income borrowers. The company operates within the financial services sector, focusing on the secondary mortgage market. Its core products include the purchase and securitization of mortgage loans, thereby providing liquidity to mortgage lenders and facilitating homeownership across America.

How the Company Makes Money

Fannie Mae generates revenue primarily through the interest income earned on the mortgage loans it holds in its portfolio and the fees collected from the issuance of mortgage-backed securities (MBS). When Fannie Mae buys mortgages from lenders, it often pools these loans together and sells them as MBS to investors, which provides these investors with periodic payments that are backed by the underlying mortgage payments. Fannie Mae also earns revenue from guarantee fees charged to lenders for the credit risk associated with the loans it guarantees. Additionally, the company may benefit from partnerships with various financial institutions and mortgage lenders, which enhance its ability to source loans and maintain liquidity in the housing market.

Federal National Mortgage Association Financial Statement Overview

Summary

Federal National Mortgage Association shows strong revenue growth and profitability with a solid net profit margin. The balance sheet reflects improved equity and reduced leverage, but recent negative cash flows indicate potential liquidity challenges.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	158.33B	152.67B	141.24B	116.81B	100.33B	109.45B
Gross Profit	21.51B	31.04B	31.94B	24.45B	36.61B	23.03B
EBITDA	82.84B	143.09B	21.96B	88.46B	27.95B	14.88B
Net Income	16.92B	16.98B	17.41B	12.92B	22.18B	11.80B
Balance Sheet
Total Assets	4.34T	4.35T	4.33T	4.31T	4.23T	3.99T
Cash, Cash Equivalents and Short-Term Investments	12.15B	78.81B	68.71B	123.38B	43.28B	40.03B
Total Debt	0.00	4.23T	4.22T	4.22T	4.16T	3.94T
Total Liabilities	4.23T	4.26T	4.25T	4.25T	4.18T	3.96T
Stockholders Equity	105.48B	94.66B	77.68B	60.28B	47.36B	25.26B
Cash Flow
Free Cash Flow	5.61B	-10.52B	11.88B	41.13B	43.67B	-78.92B
Operating Cash Flow	5.61B	-10.52B	11.88B	43.83B	47.21B	-72.93B
Investing Cash Flow	163.35B	157.79B	99.15B	90.13B	90.85B	26.68B
Financing Cash Flow	-166.09B	-137.17B	-130.17B	-154.74B	-145.05B	100.47B

Federal National Mortgage Association Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNMA, the sentiment is Negative. The current price of 10.66 is below the 20-day moving average (MA) of 11.10, below the 50-day MA of 12.16, and above the 200-day MA of 8.98, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 67.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FNMA.

Federal National Mortgage Association Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFSI	71 Outperform	$6.59B	13.66	12.55%	0.99%	25.42%	190.85%
GHLD	70 Outperform	$1.24B	50.97	10.53%	―	23.81%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FNMA	65 Neutral	$12.52B	5,560.00	15.27%	―	4.55%	―
COOP	65 Neutral	―	―	―	―	2.27%	-17.46%
RKT	49 Neutral	$45.48B	215.11	-2.15%	―	22.56%	―
UWMC	48 Neutral	$8.32B	―	11.37%	7.07%	-8.66%	―

Federal National Mortgage Association Corporate Events

Fannie Mae Reports Strong Q3 2025 Earnings

Fannie Mae, officially known as the Federal National Mortgage Association, is a leading player in the U.S. housing finance sector, primarily involved in providing liquidity to the mortgage market by purchasing and guaranteeing mortgages. The company operates under the conservatorship of the U.S. government, focusing on supporting affordable housing and maintaining a robust guaranty book of business.

Fannie Mae EVP Malloy Evans Departs with Agreement

On October 23, 2025, Malloy Evans, Fannie Mae’s Executive Vice President—Single-Family, departed from the company. In connection with his departure, Evans entered into an agreement with Fannie Mae, which includes a severance package and the waiver of certain executive compensation provisions. The agreement also involves Evans releasing certain claims against Fannie Mae and its affiliates, pending approval by the U.S. Federal Housing Finance Agency.

The most recent analyst rating on (FNMA) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Federal National Mortgage Association stock, see the FNMA Stock Forecast page.

Fannie Mae Announces Major Executive Leadership Changes

On October 22, 2025, Fannie Mae announced significant executive leadership changes. Priscilla Almodovar stepped down as President and CEO, with Peter Akwaboah appointed as Acting CEO, pending FHFA approval. Akwaboah, with extensive experience in financial services, aims to drive operational excellence and innovation. John Roscoe and Brandon Hamara were named Co-Presidents, also subject to FHFA approval, bringing their expertise in housing finance and operations to the leadership team. These changes are expected to impact Fannie Mae’s strategic direction and stakeholder engagement.

The most recent analyst rating on (FNMA) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Federal National Mortgage Association stock, see the FNMA Stock Forecast page.

Fannie Mae Appoints Brandon Hamara to Board

On October 6, 2025, Fannie Mae appointed Brandon Hamara to its Board of Directors, effective October 7, 2025. Additionally, Mr. Hamara will serve as Senior Vice President and Head of Operations for Single-Family and Multifamily, starting in November 2025. His compensation package includes a total annual target direct compensation of $1.9 million and a sign-on award of $270,000. This appointment reflects Fannie Mae’s strategic focus on strengthening its leadership team to enhance operational efficiency and market positioning.

The most recent analyst rating on (FNMA) stock is a Sell with a $10.00 price target. To see the full list of analyst forecasts on Federal National Mortgage Association stock, see the FNMA Stock Forecast page.

Fannie Mae Launches Fixed-Price Cash Tender Offers

On September 29, 2025, Fannie Mae announced the initiation of fixed-price cash tender offers for the purchase of certain Connecticut Avenue Securities (CAS) Notes. The offers are set to expire on October 3, 2025, unless extended or terminated earlier, and involve several classes of notes issued by various trusts. This move is part of Fannie Mae’s strategy to manage its financial assets and liabilities, potentially impacting its market operations and stakeholders by altering the composition of its securities portfolio.

The most recent analyst rating on (FNMA) stock is a Sell with a $10.00 price target. To see the full list of analyst forecasts on Federal National Mortgage Association stock, see the FNMA Stock Forecast page.

Fannie Mae Reports Strong Q2 2025 Financial Results

Fannie Mae, officially known as the Federal National Mortgage Association, operates as a government-sponsored enterprise in the housing finance sector, primarily focusing on providing liquidity and stability to the U.S. mortgage market through its mortgage-backed securities and credit enhancement services.

Fannie Mae’s Earnings Call: Mixed Financial Signals

The recent earnings call for Federal National Mortgage, commonly known as Fannie Mae, painted a mixed picture of the company’s financial health. While the call highlighted stable revenues and significant improvements in expense management and liquidity provision, it also raised concerns over declining net income and increased provisions for credit losses. The announcement of a new fraud detection partnership and a strong capital position were positive notes, but the financial challenges in income and credit offset these gains.