FEDERAL HOME LOAN MORTGAGE CORP (FMCC) Stock Analysis
FEDERAL HOME LOAN MORTGAGE CORP (FMCC) Stock Analysis
Overall Grade: F (Concerning)
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FEDERAL HOME LOAN MORTGAGE CORP faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 83.2% | Strong cash generation |
| Debt/Equity | 0.5x | Moderate leverage |
Investment Thesis: Healthy free cash flow margin of 83.2% provides financial flexibility for growth and shareholder returns.
What is FEDERAL HOME LOAN MORTGAGE CORP's Profitability and ROIC?
FEDERAL HOME LOAN MORTGAGE CORP's return on invested capital of N/A is below the typical cost of capital.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below cost of capital |
| Return on Equity (ROE) | -0.1% | Red flag | Moderate equity returns |
How Strong is FEDERAL HOME LOAN MORTGAGE CORP's Cash Flow Quality?
FEDERAL HOME LOAN MORTGAGE CORP generated $19.4B in free cash flow over the trailing twelve months, representing a 83.2% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 83.2% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $19.4B | Good | Positive cash generation |
| OCF/Net Income | -248.4x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is FEDERAL HOME LOAN MORTGAGE CORP's Financial Health?
FEDERAL HOME LOAN MORTGAGE CORP's debt-to-equity ratio of 0.5x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.5x | Good | Moderate leverage |
| Net Cash Position | $-32.4B | Warning | Net debt position |
Is FEDERAL HOME LOAN MORTGAGE CORP Stock Overvalued or Undervalued?
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| EV/Sales | 0.9x | Excellent | Attractive revenue multiple |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 83.2% | Top 5% | - |
| Return on Equity (ROE) | -0.1% | Bottom 10% | -0.0x below |
Rating Thresholds
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 83.2% (Excellent - Top 5% of sector (median: 0.0%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 53.6% (Good)
Frequently Asked Questions
Q: What is FEDERAL HOME LOAN MORTGAGE CORP's Return on Invested Capital (ROIC)?
FEDERAL HOME LOAN MORTGAGE CORP (FMCC) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 4.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is FEDERAL HOME LOAN MORTGAGE CORP's Free Cash Flow Margin?
FEDERAL HOME LOAN MORTGAGE CORP (FMCC) has a free cash flow margin of 83.2%, generating $19.4 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is FEDERAL HOME LOAN MORTGAGE CORP stock overvalued or undervalued?
FEDERAL HOME LOAN MORTGAGE CORP (FMCC) The EV/Sales multiple is 0.9x.
Q: How much debt does FEDERAL HOME LOAN MORTGAGE CORP have?
FEDERAL HOME LOAN MORTGAGE CORP (FMCC) has a debt-to-equity ratio of 0.5x with total debt of $37.7 billion. Net debt position is $32.4 billion.
Q: What is FEDERAL HOME LOAN MORTGAGE CORP's revenue and earnings growth?
FEDERAL HOME LOAN MORTGAGE CORP (FMCC) declined revenue by 2.7% year-over-year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does FEDERAL HOME LOAN MORTGAGE CORP compare to competitors in Other?
Compared to other companies in Other, FEDERAL HOME LOAN MORTGAGE CORP (FMCC) shows: ROIC of N/A is below the sector median of 4.3% (NaNx median). FCF margin of 83.2% exceeds the sector median of 0.0% (Top 0% of sector). These rankings are based on MetricDuck's analysis of all Other companies with available SEC filings.
Q: What warning signs should I watch for with FEDERAL HOME LOAN MORTGAGE CORP?
FEDERAL HOME LOAN MORTGAGE CORP (FMCC) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.