Federal National Mortgage Association
Federal National Mortgage Association Fundamental Analysis
Federal National Mortgage Association (FNMAS) shows moderate financial fundamentals with a PE ratio of 5.24, profit margin of 8.98%, and ROE of 13.86%. The company generates $21.4B in annual revenue with moderate year-over-year growth of 4.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FNMAS's fundamental strength across five key dimensions:
Efficiency Score
WeakFNMAS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFNMAS trades at attractive valuation levels.
Growth Score
ModerateFNMAS shows steady but slowing expansion.
Financial Health Score
WeakFNMAS carries high financial risk with limited liquidity.
Profitability Score
WeakFNMAS struggles to sustain strong margins.
Key Financial Metrics
Is FNMAS Expensive or Cheap?
P/E Ratio
FNMAS trades at 5.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FNMAS's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Federal National Mortgage Association at 0.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -28.10 times EBITDA. This is generally considered low.
How Well Does FNMAS Make Money?
Net Profit Margin
For every $100 in sales, Federal National Mortgage Association keeps $8.98 as profit after all expenses.
Operating Margin
Core operations generate 52.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.86 in profit for every $100 of shareholder equity.
ROA
Federal National Mortgage Association generates $0.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Federal National Mortgage Association produces operating cash flow of $3.21B, showing steady but balanced cash generation.
Free Cash Flow
Federal National Mortgage Association generates strong free cash flow of $3.21B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.09 in free cash annually.
FCF Yield
FNMAS converts 2.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
38.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How FNMAS Stacks Against Its Sector Peers
| Metric | FNMAS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.24 | 18.50 | Better (Cheaper) |
| ROE | 13.86% | 809.00% | Weak |
| Net Margin | 8.98% | 2211.00% | Weak |
| Debt/Equity | 38.35 | 0.90 | Weak (High Leverage) |
| Current Ratio | 0.94 | 692.04 | Weak Liquidity |
| ROA | 0.33% | -24328.00% (disorted) | Weak |
FNMAS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Federal National Mortgage Association's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
588.66%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
82.99%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
132.89%
Industry Style: Value, Dividend, Cyclical
High Growth