Federal National Mortgage Association (FNMA) AI Stock Analysis

• Market Cap: $11.41B
• Dividend Yield: N/A
• Average Volume (3M): 4.84M
• Price to Earnings (P/E): 4016.8
• Beta (1Y): 0.31
• Revenue Growth: 6.81%
• EPS Growth: N/A
• Country: US
• Employees: 8,200
• Sector: Financial
• Sector Strength: 69
• Industry: Financial - Mortgages
• EPS (TTM): 0.56
• Shares Outstanding: 1,158,087,500
• 10 Day Avg. Volume: 6,132,670
• 30 Day Avg. Volume: 4,842,775
• 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: 379.18
• Enterprise Value/Revenue: 27.93
• Enterprise Value/Gross Profit: 149.52
• Enterprise Value/Ebitda: 53.43
• 1Y Price Target: $4.00
• Price Target Upside: -59.43% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: $10.50 ▲(6.49% Upside)

The overall stock score is driven by strong financial performance in terms of revenue growth and profitability, despite liquidity challenges. Technical analysis shows mixed signals with positive momentum but potential bearish indicators. Valuation is a significant concern due to the negative P/E ratio, and the earnings call highlighted both operational improvements and credit risk challenges.

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) in the United States. Established in 1938, Fannie Mae's mission is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities (MBS), thereby increasing the availability and affordability of home loans for low- and middle-income borrowers. Fannie Mae operates within the financial services sector, focusing on residential mortgage lending.

How the Company Makes Money

Fannie Mae makes money primarily through the guarantee fees it charges lenders for the mortgage-backed securities it issues. These fees are a form of compensation for assuming the credit risk on the underlying loans. Additionally, Fannie Mae earns income from its retained mortgage portfolio, which includes holding and managing mortgage assets and securities. The company also benefits from interest income on its investment holdings. Significant partnerships with lending institutions and banks contribute to its earnings by facilitating the flow of capital into the residential mortgage market. By enhancing liquidity and reducing risks for lenders, Fannie Mae plays a crucial role in promoting homeownership and stability in the housing finance system.

Federal National Mortgage Association Financial Statement Overview

Summary

Federal National Mortgage Association showcases robust revenue growth and strong profitability with a solid net profit margin. The balance sheet strength is evident through improved equity and reduced leverage, although liquidity concerns arise from negative operating and free cash flows.

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	154.96B	150.57B	31.94B	24.53B	31.45B	23.73B
Gross Profit	28.95B	31.04B	31.94B	27.35B	36.61B	21.06B
EBITDA	81.01B	143.09B	21.96B	88.46B	27.95B	14.88B
Net Income	15.15B	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	38.67B	78.81B	68.71B	123.38B	43.28B	40.03B
Total Debt	4.21T	4.23T	4.22T	4.22T	4.16T	3.94T
Total Liabilities	4.24T	4.26T	4.25T	4.25T	4.18T	3.96T
Stockholders Equity	101.64B	94.66B	77.68B	60.28B	47.36B	25.26B
Cash Flow
Free Cash Flow	-10.73B	-10.52B	11.88B	41.13B	43.67B	-78.92B
Operating Cash Flow	-10.73B	-10.52B	11.88B	43.83B	47.21B	-72.93B
Investing Cash Flow	166.51B	157.79B	99.15B	90.13B	90.85B	26.68B
Financing Cash Flow	-155.54B	-137.17B	-130.17B	-154.74B	-145.05B	100.47B

Federal National Mortgage Association Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.86
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 9.86 is above the 20-day moving average (MA) of 8.52, above the 50-day MA of 9.17, and above the 200-day MA of 6.12, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 60.40 is Neutral, neither overbought nor oversold. The STOCH value of 61.21 is Neutral, 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
COOP	69 Neutral	$11.35B	20.28	11.76%	―	2.27%	-17.46%
Sector *	67 Neutral	$17.03B	11.60	9.79%	3.95%	10.64%	1.89%
FNMA	66 Neutral	$11.41B	4,016.82	16.11%	―	6.81%	―
PFSI	64 Neutral	$5.07B	13.60	10.05%	1.22%	20.77%	96.22%
RKT	58 Neutral	$35.38B	68.51	>-0.01%	―	21.52%	-103.65%
GHLD	57 Neutral	$1.25B	51.33	2.12%	2.50%	42.92%	64.72%
UWMC	48 Neutral	$7.21B	37.74	8.18%	8.85%	9.19%	-171.38%

Federal National Mortgage Association Corporate Events

Barry Habib Joins Fannie Mae Board of Directors

On July 21, 2025, Barry Habib was appointed to the Board of Directors of Fannie Mae, with his term lasting until the next annual election or until he resigns or is removed by the FHFA. The company has not yet determined his committee assignments or disclosed any transactions involving him, and he will receive compensation as outlined in Fannie Mae’s 2024 annual report.

The most recent analyst rating on (FNMA) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Federal National Mortgage Association stock, see the FNMA Stock Forecast page.

Fannie Mae Announces Tender Offers for CAS Notes

On May 22, 2025, Fannie Mae announced the commencement of fixed-price cash tender offers for the purchase of certain Connecticut Avenue Securities (CAS) Notes. These offers, managed by BofA Securities and Wells Fargo Securities, are set to expire on May 29, 2025, unless extended or terminated. The tender offers aim to purchase any and all of the specified CAS Notes, with settlement expected by June 2, 2025. This move could impact Fannie Mae’s financial operations and its positioning in the mortgage securities market.

The most recent analyst rating on (FNMA) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Federal National Mortgage Association stock, see the FNMA Stock Forecast page.