Federal National Mortgage Association (FNMA) AI Stock Analysis

• Market Cap: $13.07B
• Dividend Yield: N/A
• Average Volume (3M): 7.29M
• Price to Earnings (P/E): 4016.8
• Beta (1Y): 0.50
• Revenue Growth: 6.81%
• EPS Growth: N/A
• Country: US
• Employees: 8,200
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Mortgages
• EPS (TTM): 0.56
• Shares Outstanding: 1,158,087,500
• 10 Day Avg. Volume: 4,248,776
• 30 Day Avg. Volume: 7,291,964
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 331.01
• Enterprise Value/Revenue: 27.68
• Enterprise Value/Gross Profit: 149.52
• Enterprise Value/Ebitda: 53.43
• 1Y Price Target: $8.25
• Price Target Upside: -26.93% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $12.50 ▲(10.72% Upside)

The overall stock score is driven by strong financial performance and technical indicators, despite challenges in valuation and liquidity management. The earnings call provided a balanced view of achievements and challenges, contributing positively to the score.

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 exhibits strong revenue growth and profitability, with a solid net profit margin. However, negative operating and free cash flows in 2024 raise concerns about liquidity management. The improved equity position and reduced leverage are positive, but cash flow challenges need addressing.

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	156.36B	152.67B	141.24B	116.81B	100.33B	109.45B
Gross Profit	28.95B	31.04B	31.94B	24.45B	36.61B	23.03B
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: 11.29
• 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 11.29 is above the 20-day moving average (MA) of 10.47, above the 50-day MA of 9.57, and above the 200-day MA of 6.83, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 61.77 is Neutral, neither overbought nor oversold. The STOCH value of 71.76 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
FNMA	73 Outperform	$13.07B	4,016.82	16.11%	―	6.81%	―
Sector *	68 Neutral	$17.90B	11.86	10.29%	3.72%	9.74%	1.66%
PFSI	67 Neutral	$5.69B	15.26	10.05%	1.09%	20.77%	96.22%
COOP	65 Neutral	$12.06B	21.56	11.76%	―	2.27%	-17.46%
RKT	61 Neutral	$37.40B	68.51	>-0.01%	―	21.52%	-103.65%
GHLD	58 Neutral	$1.24B	51.05	2.12%	2.49%	34.62%	-7.94%
UWMC	56 Neutral	$9.12B	37.74	8.18%	7.02%	12.27%	-21.43%

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.

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.