Federal National Mortgage Association (FNMA) AI Stock Analysis

• Market Cap: $11.14B
• Dividend Yield: N/A
• Average Volume (3M): 11.45M
• Price to Earnings (P/E): 4372.7
• Beta (1Y): 0.37
• Revenue Growth: 7.87%
• EPS Growth: N/A
• Country: US
• Employees: 8,200
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Mortgages
• EPS (TTM): 0.62
• Shares Outstanding: 1,158,087,500
• 10 Day Avg. Volume: 16,453,014
• 30 Day Avg. Volume: 11,453,324
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.05
• Enterprise Value/Market Cap: 373.94
• Enterprise Value/Revenue: 9.91
• Enterprise Value/Gross Profit: 46.79
• Enterprise Value/Ebitda: 28.21
• 1Y Price Target: $4.00
• Price Target Upside: -59.80% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ―

Federal National Mortgage Association's strong financial performance is offset by liquidity concerns due to negative cash flows. Positive technical indicators suggest stable momentum, but the stock's high P/E ratio points to overvaluation. These factors combine for a moderate overall 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) operating in the financial services sector. Established in 1938, Fannie Mae's primary role is to expand the secondary mortgage market in the United States by securitizing mortgage loans, thereby allowing lenders to reinvest their assets into more lending. This process increases the availability and affordability of home loans for consumers.

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 shows strong revenue growth and profitability, with improved equity and reduced leverage. However, negative operating and free cash flows in 2024 suggest 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
90.75B	151.42B	31.94B	30.72B	31.45B	23.73B
	Gross Profit
89.03B	30.85B	31.94B	27.35B	28.38B	21.06B
	EBIT
-35.21B	119.71B	28.33B	94.19B	27.95B	14.88B
	EBITDA
-35.46B	143.09B	0.00	88.46B	27.95B	14.88B
	Net Income Common Stockholders
16.32B	16.98B	17.41B	12.92B	22.18B	11.80B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.80B	78.81B	68.71B	123.38B	43.28B	40.03B
	Total Assets
4.35T	4.35T	4.33T	4.31T	4.23T	3.99T
	Total Debt
0.00	4.23T	4.22T	4.22T	4.16T	3.94T
	Net Debt
4.19T	4.19T	4.19T	4.16T	4.12T	3.90T
	Total Liabilities
4.26T	4.26T	4.25T	4.25T	4.18T	3.96T
	Stockholders Equity
98.31B	94.66B	77.68B	60.28B	47.36B	25.26B
Cash Flow		Free Cash Flow
-14.15B	-10.52B	11.88B	41.13B	43.67B	-78.92B
	Operating Cash Flow
-14.15B	-10.52B	11.88B	43.83B	47.21B	-72.93B
	Investing Cash Flow
194.24B	157.79B	99.15B	90.13B	90.85B	26.68B
	Financing Cash Flow
-135.54B	-137.17B	-130.17B	-154.74B	-145.05B	100.47B

Federal National Mortgage Association Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 9.95 is above the 20-day moving average (MA) of 9.12, above the 50-day MA of 7.39, and above the 200-day MA of 4.56, indicating a bullish trend. The MACD of 0.67 indicates Positive momentum. The RSI at 61.70 is Neutral, neither overbought nor oversold. The STOCH value of 56.49 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	73 Outperform	$8.67B	15.38	12.39%	―	6.44%	-7.86%
FNMA	67 Neutral	$11.14B	4,372.73	18.10%	―	7.87%	―
PFSI	65 Neutral	$5.01B	14.88	9.32%	1.24%	23.79%	121.61%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
GHLD	57 Neutral	$934.40M	21.63	3.71%	3.33%	42.92%	64.72%
RKT	54 Neutral	$26.18B	68.51	0.45%	―	24.58%	-88.86%
UWMC	41 Neutral	$6.89B	37.74	-5.74%	9.28%	9.19%	-171.38%

Federal National Mortgage Association Corporate Events

Omeed Malik Joins Fannie Mae’s Board of Directors

On April 14, 2025, Omeed Malik was appointed to Fannie Mae’s Board of Directors, with his tenure lasting until the next board election or until a decision by the U.S. Federal Housing Finance Agency. The company has not yet decided on Malik’s committee assignments or any potential disclosures regarding his relationships or transactions.

Spark’s Take on FNMA Stock

According to Spark, TipRanks’ AI Analyst, FNMA is a Neutral.

Federal National Mortgage Association’s strong financial performance is offset by liquidity concerns due to negative cash flows. Positive technical indicators suggest stable momentum, but the stock’s high P/E ratio points to overvaluation. These factors combine for a moderate overall score.

To see Spark’s full report on FNMA stock, click here.

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.