Federal National Mortgage Association (FNMA) AI Stock Analysis

• Market Cap: $12.57B
• Dividend Yield: N/A
• Average Volume (3M): 6.45M
• Price to Earnings (P/E): 5495.0
• Beta (1Y): 0.64
• 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: 4,622,525
• 30 Day Avg. Volume: 6,446,079
• 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: 4.66
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 2.73
• Enterprise Value/Ebitda: 1.14
• 1Y Price Target: $10.75
• Price Target Upside: -2.18% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.56
• Revenue Forecast (FY): $29.76B

• Rating: 68 Neutral
• Price Target: $12.50 ▲(13.74% Upside)

Fannie Mae's overall stock score is driven by strong financial performance and positive earnings call sentiment, despite liquidity challenges and high valuation concerns. The technical indicators suggest moderate bullish momentum, while recent corporate events indicate strategic leadership enhancements.

Positive Factors

Revenue Growth

Strong revenue growth indicates Fannie Mae's expanding market presence and ability to capitalize on mortgage market dynamics, supporting long-term financial stability.

Leadership Changes

The leadership changes aim to drive operational excellence and innovation, potentially enhancing strategic direction and stakeholder engagement.

Liquidity Support

Significant liquidity support underscores Fannie Mae's role in stabilizing the housing market, enhancing its reputation and market influence.

Negative Factors

Negative Cash Flow

Negative cash flow could strain Fannie Mae's liquidity, impacting its ability to invest in growth opportunities and manage financial obligations.

Regulatory Capital Deficit

The regulatory capital deficit highlights potential financial vulnerabilities, affecting Fannie Mae's ability to meet regulatory requirements and expand operations.

Multifamily Credit Challenges

Rising delinquencies in the multifamily sector could lead to increased credit losses, impacting profitability and financial stability.

Federal National Mortgage Association Business Overview & Revenue Model

Company Description

Federal National Mortgage Association provides a source of financing for mortgages in the United States. It securitizes mortgage loans originated by lenders into Fannie Mae mortgage-backed securities (Fannie Mae MBS). The company operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S. Department of Agriculture, manufactured housing mortgage loans, and other mortgage-related securities. This segment also provides single-family mortgage servicing, as well as credit risk and loss management services. The Multifamily segment securitizes multifamily mortgage loans into Fannie Mae MBS; purchases multifamily mortgage loans; and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also issues structured MBS backed by Fannie Mae multifamily MBS; buys and sells multifamily agency mortgage-backed securities; invests in low-income housing tax credit (LIHTC) multifamily projects; and offers delegated underwriting and servicing, as well as multifamily mortgage, and credit risk and loss management services. The company serves mortgage banking companies, savings and loan associations, savings banks, commercial banks, credit unions, community banks, insurance companies, private mortgage originators, and state and local housing finance agencies. Federal National Mortgage Association was founded in 1938 and is headquartered in Washington, the District of Columbia.

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 exhibits strong revenue growth and profitability, with a significant increase in stockholders' equity. However, the recent negative operating and free cash flows indicate potential liquidity challenges, which slightly dampen the overall financial performance.

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: 10.99
• 50DMA: Positive
• 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 Positive. The current price of 10.99 is above the 20-day moving average (MA) of 10.76, above the 50-day MA of 10.83, and above the 200-day MA of 9.48, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 30.72 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
GHLD	70 Outperform	$1.24B	50.97	10.53%	―	23.81%	―
PFSI	69 Neutral	$6.78B	14.05	12.55%	0.92%	25.42%	190.85%
FNMA	68 Neutral	$12.57B	5,495.00	15.27%	―	4.55%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COOP	65 Neutral	―	―	―	―	2.27%	-17.46%
RKT	54 Neutral	$51.31B	228.72	-2.15%	―	22.56%	―
UWMC	52 Neutral	$8.19B	-538.89	11.37%	8.26%	-8.66%	―

Federal National Mortgage Association Corporate Events

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.

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.

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.

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.