FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE (FNMA) Stock Analysis
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE (FNMA) Stock Analysis
Overall Grade: F (Concerning)
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FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 82.8% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 82.8% provides financial flexibility for growth and shareholder returns.
What is FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE's Profitability and ROIC?
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE'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) | 0.0% | Warning | Moderate equity returns |
How Strong is FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE's Cash Flow Quality?
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE generated $24.0B in free cash flow over the trailing twelve months, representing a 82.8% margin. Cash earnings quality is strong, with operating cash flow exceeding net income by 2665.4x.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 82.8% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $24.0B | Good | Positive cash generation |
| OCF/Net Income | 2665.4x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE's Financial Health?
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE's debt-to-equity ratio of 0.0x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Is FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE Stock Overvalued or Undervalued?
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| EV/Sales | -2.2x | Excellent | Attractive revenue multiple |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 82.8% | Top 5% | - |
| Return on Equity (ROE) | 0.0% | Bottom 50% | 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: 82.8% (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: 0.0% (Excellent)
Frequently Asked Questions
Q: What is FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE's Return on Invested Capital (ROIC)?
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE (FNMA) 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 NATIONAL MORTGAGE ASSOCIATION FANNIE MAE's Free Cash Flow Margin?
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE (FNMA) has a free cash flow margin of 82.8%, generating $24.0 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 NATIONAL MORTGAGE ASSOCIATION FANNIE MAE stock overvalued or undervalued?
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE (FNMA) The EV/Sales multiple is -2.2x.
Q: What is FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE's revenue and earnings growth?
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE (FNMA) declined revenue by 0.4% year-over-year. Net income grew by 200.0% year-over-year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE compare to competitors in Other?
Compared to other companies in Other, FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE (FNMA) shows: ROIC of N/A is below the sector median of 4.3% (NaNx median). FCF margin of 82.8% 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 NATIONAL MORTGAGE ASSOCIATION FANNIE MAE?
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE (FNMA) 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 2025-10-29. 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.