Federal Home Loan Mortgage Corporation PFD 5.1% SAL (FREJO)
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 PFD 5.1% SAL (FREJO) trades at $16.84. Federal Home Loan Mortgage Corp. (FREJO) operates in the financial services sector, focusing on housing finance solutions. Market cap: $3.69B, Sector: Financial services.
Price live · AI analysis from Mar 17, 2026Analyst Coverage for FREJO: FREJO 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 FREJO against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
FREJO: 1/1 perspectives are bearish.
How is this calculated? →Federal Home Loan Mortgage Corporation PFD 5.1% SAL (FREJO) Financial Services Profile
Federal Home Loan Mortgage Corp. (FREJO) provides housing finance solutions through single-family and multifamily loan securitization and guarantees. With a $3.69B market cap and a P/E ratio of 1.52, the company manages mortgage credit risk and market spread risk within the financial services sector, competing with firms like EDNMF and EDNMY.
What Is the Investment Thesis for FREJO?
Federal Home Loan Mortgage Corporation (FREJO) presents a unique investment case within the financial services sector. The company's role in securitizing and guaranteeing mortgages provides a stable revenue stream, evidenced by its 8.1% profit margin and 100.0% gross margin. The low P/E ratio of 1.52 suggests potential undervaluation. Key value drivers include the ongoing demand for housing and the company's ability to manage credit and market risks effectively. Growth catalysts involve expanding its securitization activities and capitalizing on favorable interest rate environments. Potential risks include regulatory changes and fluctuations in the housing market, which could impact loan performance and securitization volumes. Investors should monitor these factors to assess the long-term viability of FREJO.
Based on FMP financials and quantitative analysis
FREJO Key Highlights
- Market capitalization of $3.69B, indicating substantial size and market presence within the financial services sector.
- P/E ratio of 1.52, suggesting potential undervaluation compared to industry peers.
- Gross margin of 100.0%, reflecting its business model as a guarantor and securitizer of mortgages.
- Profit margin of 8.1%, demonstrating profitability in its core operations.
- Beta of 0.71, indicating lower volatility compared to the overall market.
Who Are FREJO's Competitors?
FREJO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| EDNMF Edenred S.A. | $25.20 | +0.00% | $5.84B | 49 |
| EDNMY Edenred S.A. | $13.35 | +2.69% | $6.29B | — |
| EFGXY EFG International AG | $20.80 | +0.00% | $6.22B | 44 |
| IGGHY IG Group Holdings plc | $25.84 | +3.36% | $8.54B | 52 |
| IGGRF IG Group Holdings plc | $24.80 | +0.00% | $8.19B | 53 |
| ATLC Atlanticus Holdings Corporation | $96.44 | +0.04% | $1.46B | 71 |
| LPRO Open Lending Corporation | $3.13 | +0.64% | $370.35M | 68 |
| ATLCZ Atlanticus Holdings Corporation 9.25% Senior Notes due 2029 | $25.30 | +0.38% | $1.46B | 68 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FREJO's Key Strengths?
- Government-sponsored enterprise (GSE) status.
- Significant market share in mortgage securitization.
- Expertise in managing mortgage credit risk.
- Established relationships with lenders and investors.
What Are FREJO's Weaknesses?
- Reliance on government support and regulation.
- Sensitivity to interest rate fluctuations.
- Exposure to housing market cycles.
- Complex regulatory environment.
What Could Drive FREJO Stock Higher?
- Government policies supporting housing affordability can drive demand for FREJO's services.
- Technological advancements in mortgage underwriting can improve efficiency and reduce risk.
- Potential changes in interest rates may impact mortgage activity and securitization volumes.
- Expansion into underserved housing markets can create new growth opportunities.
- Development of green mortgage products can attract environmentally conscious borrowers.
What Are the Key Risks for FREJO?
- Financial-distress signal — its Altman Z-Score of 0.03 sits in the distress zone (elevated bankruptcy risk).
- Changes in government regulation could impact FREJO's business model.
- Economic downturns and housing market corrections could lead to increased defaults.
- Increased competition from private-label securitizers could erode market share.
- Fluctuations in interest rates can affect mortgage demand and profitability.
- Credit risk associated with mortgage-backed securities remains a concern.
What Are the Growth Opportunities for FREJO?
- Expansion of Multifamily Securitization: Freddie Mac can capitalize on the growing demand for multifamily housing by expanding its securitization activities in this segment. The multifamily housing market is projected to grow as urbanization increases, creating a significant opportunity for FREJO to increase its revenue. By offering innovative securitization products tailored to multifamily loans, FREJO can attract more lenders and investors, enhancing its market position. This expansion can be achieved within the next 3-5 years.
- Technological Innovation in Mortgage Underwriting: Investing in advanced technologies such as AI and machine learning to improve mortgage underwriting processes can significantly reduce risk and increase efficiency. By leveraging data analytics, FREJO can better assess borrower creditworthiness and identify potential risks, leading to lower default rates and higher profitability. The timeline for implementing these technologies is approximately 2-3 years, with ongoing enhancements to maintain a competitive edge.
- Strategic Partnerships with Fintech Companies: Collaborating with fintech companies can provide FREJO with access to new technologies and distribution channels. Fintech firms are disrupting the traditional mortgage industry with innovative solutions such as online mortgage platforms and automated underwriting systems. By partnering with these companies, FREJO can enhance its customer experience, streamline its operations, and reach a wider audience. These partnerships can be established within the next 1-2 years.
- Geographic Expansion into Underserved Markets: Identifying and expanding into underserved housing markets can provide FREJO with new growth opportunities. Many regions in the U.S. lack access to affordable housing and mortgage financing. By focusing on these markets, FREJO can increase its loan volume and contribute to community development. This expansion requires careful market research and strategic partnerships with local lenders and community organizations. The timeline for this initiative is approximately 3-5 years.
- Development of Green Mortgage Products: As environmental awareness grows, there is increasing demand for green mortgage products that incentivize energy-efficient home improvements. FREJO can develop and promote green mortgage programs that offer favorable terms to borrowers who invest in renewable energy systems or energy-efficient appliances. This initiative aligns with sustainability goals and can attract environmentally conscious borrowers. The development and launch of these products can be achieved within the next 1-2 years.
What Opportunities Does FREJO Have?
- Expansion into underserved housing markets.
- Development of innovative mortgage products.
- Strategic partnerships with fintech companies.
- Increased demand for affordable housing.
What Threats Does FREJO Face?
- Changes in government policy and regulation.
- Increased competition from private-label securitizers.
- Economic downturns and housing market corrections.
- Rising interest rates.
What Are FREJO's Competitive Advantages?
- Government-sponsored enterprise (GSE) status provides a competitive advantage.
- Extensive experience and expertise in mortgage securitization.
- Established relationships with mortgage lenders and investors.
- Scale and scope enable efficient risk management.
What Does FREJO Do?
Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, was founded on July 24, 1970, and is headquartered in McLean, VA. The company plays a crucial role in the U.S. housing finance system by purchasing, securitizing, and guaranteeing mortgages. Freddie Mac operates through two primary segments: Single-Family and Multifamily. The Single-Family segment focuses on the purchase, securitization, and guarantee of single-family loans, along with managing associated credit risks. The Multifamily segment engages in similar activities for multifamily loans and securities, also managing market spread risk. Freddie Mac's activities support housing affordability and stability by providing liquidity to mortgage lenders. The company's gross margin is 100.0%, reflecting its role as a guarantor and securitizer rather than a direct lender. With 7,839 employees, Freddie Mac continues to be a significant player in the financial services sector, ensuring a steady flow of capital to the housing market.
What Products and Services Does FREJO Offer?
- Purchases single-family mortgages from lenders.
- Securitizes single-family mortgages into mortgage-backed securities (MBS).
- Guarantees the timely payment of principal and interest on MBS.
- Manages credit risk associated with single-family mortgages.
- Purchases multifamily mortgages from lenders.
- Securitizes multifamily mortgages into securities.
- Manages market spread risk related to multifamily mortgages.
How Does FREJO Make Money?
- Generates revenue from guarantee fees charged on mortgage-backed securities.
- Earns income from the difference between the interest received on mortgages and the interest paid on securities.
- Manages risk through diversification and credit enhancements.
- Provides liquidity to the mortgage market by purchasing and securitizing loans.
What Industry Does FREJO Operate In?
Federal Home Loan Mortgage Corporation (FREJO) operates within the financial services sector, specifically in credit services. The industry is characterized by increasing regulatory scrutiny and evolving market dynamics. FREJO competes with other financial institutions involved in mortgage securitization and guarantees. The company's role in providing liquidity to the housing market positions it as a key player in the industry. Market trends include the increasing demand for affordable housing and the impact of interest rate fluctuations on mortgage activity. Competitors include EDNMF, EDNMY, EFGXY, IGGHY, and IGGRF, each vying for market share in the mortgage-backed securities arena.
Who Are FREJO's Key Customers?
- Mortgage lenders (banks, credit unions, mortgage companies).
- Investors in mortgage-backed securities (institutional investors, pension funds, insurance companies).
- Homebuyers seeking affordable mortgage financing.
- Multifamily property owners and developers.
F-Score 7/9Financial Health
Federal Home Loan Mortgage Corporation PFD 5.1% SAL'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 0.03 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Federal Home Loan Mortgage Corporation PFD 5.1% SAL revenue of about $24.44B for fiscal 2026, with EPS near $3.87.
FREJO Financials
Bull Case vs Bear Case
Bull Case
- Government-sponsored enterprise (GSE) status.
- Significant market share in mortgage securitization.
- Expertise in managing mortgage credit risk.
- Established relationships with lenders and investors.
Bear Case
- Reliance on government support and regulation.
- Sensitivity to interest rate fluctuations.
- Exposure to housing market cycles.
- Complex regulatory environment.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
FREJO Latest News
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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
FREJO Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FREJO.
Price Targets
Wall Street price target analysis for FREJO.
FREJO MoonshotScore
What does this score mean?
The MoonshotScore rates FREJO's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Michael J. DeVito
CEO
Michael J. DeVito serves as the CEO of Federal Home Loan Mortgage Corporation. His career spans several decades in the financial services and mortgage industries. Prior to joining Freddie Mac, DeVito held leadership positions at various financial institutions, where he focused on mortgage origination, servicing, and securitization. His experience includes managing large teams and overseeing significant portfolios of mortgage assets. DeVito's expertise lies in risk management, strategic planning, and operational efficiency within the housing finance sector.
Track Record: Since assuming the role of CEO, Michael J. DeVito has focused on enhancing Freddie Mac's operational efficiency and risk management capabilities. Key milestones under his leadership include streamlining the securitization process and strengthening relationships with mortgage lenders. DeVito has also emphasized the importance of technological innovation in improving the company's underwriting and servicing processes. His strategic decisions have aimed to ensure Freddie Mac's stability and its ability to support the housing market.
FREJO OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that Federal Home Loan Mortgage Corporation PFD 5.1% SAL (FREJO) does not meet the listing requirements of higher tiers like OTCQX or OTCQB. Companies in this tier may have limited financial disclosure and may not be subject to the same regulatory oversight as companies listed on major exchanges like the NYSE or NASDAQ. This tier often includes companies with distressed financials, shell corporations, or those that choose not to comply with higher reporting standards. Investing in OTC Other stocks carries significant risks due to the lack of transparency and regulatory scrutiny.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial disclosure increases the risk of investing in FREJO.
- Low trading volume and wide bid-ask spreads can lead to price volatility.
- Lack of regulatory oversight exposes investors to potential fraud or mismanagement.
- The company's financial condition may be unstable, increasing the risk of bankruptcy.
- OTC Other stocks are often subject to pump-and-dump schemes and other manipulative practices.
- Verify the company's legal status and registration.
- Obtain and review any available financial statements.
- Assess the company's business model and competitive position.
- Research the background and experience of the company's management team.
- Determine the level of regulatory oversight and compliance.
- Evaluate the liquidity and trading volume of the stock.
- Consult with a financial advisor to assess the risks and potential rewards.
- Established history as Federal Home Loan Mortgage Corporation.
- Operation within the regulated financial services sector.
- Publicly available information, even if limited, can be scrutinized.
- Engagement in mortgage securitization activities.
FREJO Financial Services Stock FAQ
What does Federal Home Loan Mortgage Corporation PFD 5.1% SAL do?
Federal Home Loan Mortgage Corporation (FREJO) operates as a government-sponsored enterprise (GSE) focused on providing liquidity and stability to the U.S. housing market. The company primarily engages in the securitization and guarantee of single-family and multifamily mortgages. By purchasing mortgages from lenders and packaging them into mortgage-backed securities (MBS), FREJO enables lenders to replenish their funds and continue providing mortgage financing to homebuyers. The company earns revenue through guarantee fees and interest income, while managing credit and market risks associated with its mortgage portfolio. FREJO's activities play a crucial role in supporting housing affordability and access to mortgage credit.
What do analysts say about FREJO stock?
Analyst coverage of Federal Home Loan Mortgage Corporation PFD 5.1% SAL (FREJO) is limited due to its OTC listing and preferred stock status. However, key valuation metrics such as the P/E ratio of 1.52 suggest potential undervaluation. Growth considerations include the company's ability to capitalize on favorable interest rate environments and expand its securitization activities. Investors should monitor regulatory developments and housing market trends to assess the long-term outlook for FREJO. Analyst consensus is not readily available, but individual research and due diligence are essential for making informed investment decisions.
What are the main risks for FREJO?
Federal Home Loan Mortgage Corporation PFD 5.1% SAL (FREJO) faces several risks inherent to its business model and the financial services sector. Regulatory changes, particularly those affecting GSEs, could significantly impact the company's operations and profitability. Economic downturns and housing market corrections could lead to increased mortgage defaults and losses on mortgage-backed securities. Competition from private-label securitizers and fluctuations in interest rates also pose challenges. Additionally, credit risk associated with mortgage lending and securitization remains a persistent concern. Investors should carefully evaluate these risks before investing in FREJO.
What are the key factors to evaluate for FREJO?
Evaluate FREJO on fundamentals, analyst consensus, and risk factors. Not financial advice.
How frequently does FREJO data refresh on this page?
FREJO 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 FREJO's recent stock price performance?
Federal Home Loan Mortgage Corporation PFD 5.1% SAL (FREJO) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Government-sponsored enterprise (GSE) status. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FREJO overvalued or undervalued right now?
Valuing Federal Home Loan Mortgage Corporation PFD 5.1% SAL (FREJO) 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 FREJO?
Before investing in Federal Home Loan Mortgage Corporation PFD 5.1% SAL (FREJO), 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
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- OTC market data may have limited reliability.