Federal Home Loan Mortgage Corporation (FMCKP)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Federal Home Loan Mortgage Corporation (FMCKP) trades at $15.52 with AI Score 52/100 (Grade B). Federal Home Loan Mortgage Corporation (FMCKP) operates in the secondary mortgage market, focusing on the purchase and securitization of residential mortgage loans. Market cap: $3.57B, Sector: Financial services.
Price live · AI analysis from Jun 14, 2026Analyst Coverage for FMCKP: FMCKP does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates FMCKP against Financial Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
FMCKP: 4/7 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →Federal Home Loan Mortgage Corporation (FMCKP) Financial Services Profile
Federal Home Loan Mortgage Corporation is a key player in the U.S. secondary mortgage market, specializing in the purchase, securitization, and guarantee of single-family and multifamily residential mortgage loans, thereby enhancing liquidity and stability in housing finance.
What Is the Investment Thesis for FMCKP?
Federal Home Loan Mortgage Corporation is positioned to benefit from the ongoing demand for affordable housing and the need for liquidity in the mortgage market. With a market capitalization of $3.57B and a low P/E ratio of 1.57, the company demonstrates strong profitability, evidenced by a profit margin of 8.6%. Growth catalysts include the increasing trend of mortgage securitization and the expansion of its multifamily loan offerings, which align with the rising demand for rental properties. Additionally, the company’s robust risk management practices and its significant role in the U.S. housing finance system provide a competitive advantage. However, potential risks include regulatory challenges and market fluctuations that could impact housing demand and mortgage rates.
Based on FMP financials and quantitative analysis
FMCKP Key Highlights
- Market capitalization of $3.57B, indicating a substantial presence in the mortgage market.
- P/E ratio of 1.57, significantly lower than the industry average, suggesting potential undervaluation.
- Profit margin of 8.6%, reflecting effective cost management and operational efficiency.
- Gross margin of 100.0%, indicating strong revenue generation capabilities from mortgage-related activities.
- Beta of 1.69, suggesting higher volatility compared to the broader market.
Who Are FMCKP's Competitors?
FMCKP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| MEBUF Mebuki Financial Group, Inc. | $8.41 | +0.00% | $7.89B | 58 |
| HCXLF Hiscox Ltd | $24.93 | +3.81% | $7.98B | 62 |
| UNJCF Unicaja Banco, S.A. | $3.05 | +0.00% | $7.83B | 47 |
| IVTJF Investec Group | $7.95 | +0.00% | $6.76B | 53 |
| IGGHY IG Group Holdings plc | $25.84 | +3.36% | $8.54B | 52 |
| SNFCA Security National Financial Corporation | $9.86 | +1.39% | $221.25M | 73 |
| BETRW Better Home & Finance Holding Company | $0.20 | -1.46% | $441.57M | 69 |
| ECPG Encore Capital Group, Inc. | $89.85 | -0.84% | $1.93B | 66 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FMCKP's Key Strengths?
- Strong market position in the secondary mortgage market.
- Robust profitability metrics with a high gross margin.
- Diverse product offerings catering to various customer segments.
- Established risk management framework to mitigate credit risk.
What Are FMCKP's Weaknesses?
- Dependence on the housing market's performance.
- Limited dividend offerings may deter income-focused investors.
- Exposure to regulatory changes affecting mortgage financing.
- High beta indicating volatility relative to the market.
What Could Drive FMCKP Stock Higher?
- Expansion of multifamily loan offerings to meet increasing housing demand.
- Strong performance in the Single-family segment driven by mortgage securitization activities.
- Continued investment in technology to enhance operational efficiency and customer experience.
What Are the Key Risks for FMCKP?
- Financial-distress signal — its Altman Z-Score of 0.16 sits in the distress zone (elevated bankruptcy risk).
- Regulatory changes that could impact Freddie Mac's business model and operations.
- Economic downturns affecting housing market stability and mortgage demand.
- Increased competition from fintech companies disrupting traditional mortgage financing.
What Are the Growth Opportunities for FMCKP?
- Growth opportunity 1: The multifamily housing market is projected to reach $1 trillion by 2028, driven by increasing urbanization and a growing population. Freddie Mac's strategic focus on multifamily loans positions it to capture a significant share of this expanding market, enhancing its revenue streams and reinforcing its role in providing affordable rental housing.
- Growth opportunity 2: The trend towards mortgage securitization is expected to continue, with the market projected to grow at a CAGR of 5% over the next five years. Freddie Mac's established expertise in securitizing mortgage loans enables it to capitalize on this trend, driving growth in its Single-family segment and improving liquidity for lenders.
- Growth opportunity 3: The ongoing digital transformation in the financial services sector presents opportunities for Freddie Mac to enhance operational efficiency and customer experience. By investing in technology and data analytics, the company can streamline its processes, reduce costs, and improve risk assessment capabilities, ultimately contributing to its profitability.
- Growth opportunity 4: The demand for affordable housing is increasing, with government initiatives aimed at promoting homeownership and rental options. Freddie Mac's mission to provide liquidity and stability in the housing market aligns with these initiatives, positioning the company to benefit from increased funding and support for its programs.
- Growth opportunity 5: Expansion into new markets, particularly in underserved regions, presents an opportunity for Freddie Mac to diversify its portfolio and enhance its impact on the housing finance system. By targeting areas with high growth potential, the company can increase its market share and drive sustainable growth.
What Opportunities Does FMCKP Have?
- Expansion into the growing multifamily housing market.
- Increased demand for mortgage securitization services.
- Technological advancements enhancing operational efficiency.
- Government initiatives supporting affordable housing.
What Threats Does FMCKP Face?
- Potential regulatory changes impacting business operations.
- Economic downturns affecting housing demand and mortgage rates.
- Increased competition from fintech companies and alternative lenders.
- Market volatility leading to fluctuations in mortgage-backed securities.
What Are FMCKP's Competitive Advantages?
- Established reputation and brand recognition in the U.S. housing finance market.
- Extensive network of relationships with lenders and investors.
- Strong risk management practices and regulatory compliance.
- Government backing, enhancing credibility and stability.
- Diverse product offerings across single-family and multifamily segments.
What Does FMCKP Do?
Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, was established in 1970 to provide liquidity, stability, and affordability to the U.S. housing market. Headquartered in McLean, Virginia, the company operates primarily in the secondary mortgage market, where it purchases residential mortgage loans originated by lenders. Freddie Mac's operations are divided into two main segments: Single-family and Multifamily. The Single-family segment focuses on purchasing, securitizing, and guaranteeing single-family loans, while managing mortgage credit risk and overseeing a portfolio of mortgage-related investments. This segment serves a wide array of financial institutions, including mortgage banking companies, commercial banks, credit unions, and housing finance agencies. The Multifamily segment, on the other hand, engages in the purchase, sale, securitization, and guarantee of multifamily loans and securities, catering to various clients such as banks, insurance companies, and pension funds. With a workforce of 8,076 employees, Freddie Mac plays a vital role in the U.S. housing finance system, ensuring that lenders have access to the necessary capital to support homeownership and rental housing.
What Products and Services Does FMCKP Offer?
- Purchase single-family and multifamily residential mortgage loans from lenders.
- Securitize and guarantee mortgage loans to enhance liquidity in the housing market.
- Manage mortgage-related investments and credit risk portfolios.
- Issue multifamily K and SB certificates for securitization.
- Provide mortgage-related guarantees to various financial institutions.
- Support affordable housing initiatives through targeted lending programs.
How Does FMCKP Make Money?
- Revenue generated through the purchase and securitization of mortgage loans.
- Earnings from guaranteeing mortgage-backed securities.
- Interest income from mortgage-related investments.
- Fees charged for providing credit risk transfer products.
- Revenue from issuing other securitization products.
What Industry Does FMCKP Operate In?
The financial services industry, particularly the mortgage sector, is experiencing significant changes driven by technological advancements and evolving consumer preferences. The U.S. housing market is projected to grow, supported by low interest rates and a strong demand for housing. Federal Home Loan Mortgage Corporation operates within this dynamic landscape, providing essential liquidity and stability. As competition intensifies among financial institutions, Freddie Mac's established position and extensive network of relationships with lenders and investors enhance its competitive edge. The company's focus on both single-family and multifamily segments allows it to diversify its offerings and mitigate risks associated with market fluctuations.
Who Are FMCKP's Key Customers?
- Mortgage banking companies and commercial banks.
- Regional banks and community banks.
- Credit unions and housing finance agencies.
- Insurance companies and pension funds.
- Real estate investment trusts and brokers.
How Federal Home Loan Mortgage Corporation Is Valued
Federal Home Loan Mortgage Corporation carries a market capitalization of $3.57B, placing it in the mid-cap category. Relative to its peer group, FMCKP's quantitative score of 52/100 is roughly in line with the peer average of 54/100.
Company Profile
Federal Home Loan Mortgage Corporation operates in the Financial - Mortgages industry within the Financial Services sector. It is headquartered in McLean, US. The company is led by CEO Kenny Smith. FMCKP has traded publicly since 2001.
ROE 17%Key Financial Metrics
Return on equity for Federal Home Loan Mortgage Corporation stands at 16.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.3%, showing how much profit it generates from its asset base. FMCKP trades at a trailing price-to-earnings ratio of 1.81, below the Financial Services sector average of ~18x. A current ratio of 1.53 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 55.4%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 7/9Financial Health
Federal Home Loan Mortgage Corporation's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.16 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Federal Home Loan Mortgage Corporation revenue of about $24.44B for fiscal 2026, with EPS near $3.87. The estimate reflects 4 contributing analysts.
FMCKP Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future performance, indicating that executives believe in a positive turnaround.
- Community sentiment has shifted positively, with discussions around potential growth in the housing market bolstering optimism.
- Analysts are noting improvements in housing demand, which could benefit FMCKP's operations and profitability.
- Market perception is leaning towards recovery in the mortgage sector, with expectations of increased lending activity.
Bear Case
- Concerns about rising interest rates continue to loom, which could hinder mortgage affordability and impact FMCKP's business.
- Recent bearish sentiment in community discussions reflects worries about potential regulatory changes affecting the mortgage industry.
- Insider selling activity raises questions about the company's short-term outlook and whether executives foresee challenges ahead.
- Market uncertainty surrounding economic conditions may lead to cautious investor behavior, affecting FMCKP's stock performance.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
FMCKP Latest News
-
Fannie, Freddie Stock Drops on Pulte’s National Intelligence Appointment
The Wall Street Journal · Jun 2, 2026
-
Housing chief to top spy: Pulte named acting DNI in historic shakeup
Investing.com · Jun 2, 2026
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Homebuyers Hammered as War-Fueled Bond Rout Drives Up Rates
Bloomberg · May 21, 2026
FMCKP Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FMCKP.
Price Targets
Wall Street price target analysis for FMCKP.
FMCKP MoonshotScore
What does this score mean?
The MoonshotScore rates FMCKP's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Kenny Smith
CEO
Kenny Smith has over two decades of experience in the financial services industry, with a strong focus on mortgage finance and risk management. He holds a degree in Finance from a leading university and has held various leadership positions within Freddie Mac, contributing to its strategic direction and operational excellence.
Track Record: Under Kenny Smith's leadership, Freddie Mac has enhanced its risk management practices and expanded its product offerings, positioning the company for sustainable growth in a competitive market. His strategic initiatives have led to improved operational efficiency and increased market share.
FMCKP OTC Market Information
The OTC Other tier indicates that FMCKP trades on the over-the-counter market, which typically has less stringent reporting requirements compared to major exchanges like NYSE or NASDAQ. This tier often includes companies that may not meet the criteria for listing on these exchanges, resulting in lower visibility and liquidity.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited liquidity may affect the ability to execute large trades without impacting the stock price.
- Potential for higher volatility due to lower trading volumes.
- Regulatory risks specific to OTC stocks that may affect business operations.
- Less transparency compared to companies listed on major exchanges.
- Review the company's financial statements and disclosures.
- Assess the competitive landscape and market conditions.
- Evaluate management's track record and strategic vision.
- Understand the regulatory environment affecting the mortgage industry.
- Monitor economic indicators that impact housing demand.
- Established history and reputation in the mortgage finance industry.
- Government backing provides a level of confidence in operations.
- Availability of financial disclosures and reports for investor review.
Federal Home Loan Mortgage Corporation Financial Services Stock: Key Questions Answered
What does Federal Home Loan Mortgage Corporation do?
Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, operates in the secondary mortgage market, purchasing and securitizing residential mortgage loans. It provides liquidity and stability to the housing finance system by guaranteeing loans and managing mortgage-related investments. The company serves a diverse range of clients, including banks, credit unions, and housing finance agencies.
What are the main risks for FMCKP?
The main risks for Federal Home Loan Mortgage Corporation include potential regulatory changes that could impact its operations, economic downturns that may affect housing demand and mortgage rates, and increased competition from fintech companies that could disrupt traditional mortgage financing. Additionally, the company's dependence on the housing market's performance poses a risk to its profitability.
How does Federal Home Loan Mortgage Corporation make money in financial services?
Federal Home Loan Mortgage Corporation generates revenue primarily through the purchase and securitization of mortgage loans. It earns fees for guaranteeing mortgage-backed securities, as well as interest income from its mortgage-related investments. The company also charges for providing credit risk transfer products and other securitization services, contributing to its overall profitability.
What are the key factors to evaluate for FMCKP?
Federal Home Loan Mortgage Corporation (FMCKP) holds an AI score of 52/100 (moderate). Not financial advice.
How frequently does FMCKP data refresh on this page?
FMCKP prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven FMCKP's recent stock price performance?
Federal Home Loan Mortgage Corporation (FMCKP) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong market position in the secondary mortgage market. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FMCKP overvalued or undervalued right now?
Valuing Federal Home Loan Mortgage Corporation (FMCKP) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying FMCKP?
Before investing in Federal Home Loan Mortgage Corporation (FMCKP), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
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