Federal National Mortgage Association (FNMA) AI Stock Analysis

• Market Cap: $12.46B
• Dividend Yield: N/A
• Average Volume (3M): 6.56M
• Price to Earnings (P/E): 5780.0
• Beta (1Y): 0.63
• 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: 5,898,684
• 30 Day Avg. Volume: 6,562,203
• 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: 351.09
• Enterprise Value/Revenue: 151.97
• Enterprise Value/Gross Profit: 203.67
• Enterprise Value/Ebitda: 84.88
• 1Y Price Target: $13.83
• Price Target Upside: 20.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.55
• Revenue Forecast (FY): $29.76B

• Rating: 64 Neutral
• Price Target: $10.00 ▼(-12.97% Downside)

The overall stock score is driven by strong financial performance and positive earnings call sentiment, despite liquidity challenges and valuation concerns. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation.

Positive Factors

Revenue Growth

Fannie Mae's robust revenue growth from $21.69 billion in 2019 to $150.57 billion in 2024 indicates strong market demand and effective business strategies, supporting long-term financial health.

Capital Growth

The increase in net worth and stable guarantee fee revenues reflect strong financial management and resilience, bolstering Fannie Mae's capacity to support the housing market and withstand economic fluctuations.

Single-Family Business Performance

Strong performance in the single-family business, which represents a significant portion of Fannie Mae's operations, underscores its competitive positioning and ability to generate stable revenues.

Negative Factors

Liquidity Challenges

Negative cash flows indicate potential difficulties in liquidity management, which could impact Fannie Mae's ability to invest in growth opportunities and meet financial obligations.

Regulatory Capital Deficit

The regulatory capital deficit highlights the need for Fannie Mae to strengthen its capital base, which is crucial for long-term financial stability and compliance with regulatory requirements.

Multifamily Credit Challenges

Rising delinquencies in the multifamily sector pose risks to Fannie Mae's credit portfolio, potentially affecting profitability and necessitating more conservative credit policies.

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) based in the United States that plays a critical role in the housing finance system. Established in 1938, Fannie Mae's primary mission is to facilitate homeownership by providing liquidity, stability, and affordability to the mortgage market. The company operates primarily in the mortgage finance sector, offering a range of products and services that include purchasing and securitizing mortgage loans, providing mortgage-backed securities (MBS) to investors, and ensuring that lenders have access to capital for new loans.

How the Company Makes Money

Fannie Mae generates revenue primarily through the sale of mortgage-backed securities (MBS) and the collection of guarantee fees. When Fannie Mae purchases mortgage loans from lenders, it pools these loans and issues MBS, which are sold to investors in the capital markets. The company earns income from the guarantee fees charged to lenders for the credit risk associated with these securities. Additionally, Fannie Mae receives income from its investment portfolio and gains from the sale of loans or MBS. Strategic partnerships with various financial institutions and mortgage lenders also contribute to its ability to generate revenue by expanding its loan acquisitions and market presence. Economic factors, such as interest rates and housing market conditions, significantly influence its earnings potential.

Federal National Mortgage Association Financial Statement Overview

Summary

Federal National Mortgage Association shows strong revenue growth and profitability, supported by an improved equity position and reduced leverage. However, recent negative operating and free cash flows suggest 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	28.79B	31.05B	31.94B	24.53B	36.61B	23.03B
Gross Profit	21.48B	31.05B	31.94B	24.53B	36.61B	23.03B
EBITDA	51.55B	21.27B	21.96B	16.23B	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	47.21B	-72.93B
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: Positive
• Last Price: 11.49
• 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 11.49 is above the 20-day moving average (MA) of 10.21, above the 50-day MA of 11.04, and above the 200-day MA of 9.27, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 87.55 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
GHLD	70 Outperform	$1.24B	50.97	10.53%	―	23.81%	―
PFSI	68 Neutral	$6.59B	13.66	12.55%	0.91%	25.42%	190.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COOP	65 Neutral	―	―	―	―	2.27%	-17.46%
FNMA	64 Neutral	$12.46B	5,780.00	15.27%	―	4.55%	―
RKT	59 Neutral	$55.61B	248.74	-2.15%	―	22.56%	―
UWMC	46 Neutral	$9.02B	―	11.37%	7.05%	-8.66%	―

Federal National Mortgage Association Corporate Events

Fannie Mae’s Earnings Call: Resilience Amid Challenges

The recent earnings call for Federal National Mortgage, commonly known as Fannie Mae, painted a picture of resilience and strategic growth despite some challenges. The company reported strong quarterly net income growth and significant liquidity support for the housing market. However, it also acknowledged a decline in year-on-year income and issues within the multifamily credit sector. Overall, the sentiment was positive, highlighting a robust performance in key areas.

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.