Federal Home Loan Mortgage Corporation PFD 5.1% SAL
Federal Home Loan Mortgage Corporation PFD 5.1% SAL Fundamental Analysis
Federal Home Loan Mortgage Corporation PFD 5.1% SAL (FREJO) shows moderate financial fundamentals with a PE ratio of 1.78, profit margin of 8.09%, and ROE of 16.19%. The company generates $26.6B in annual revenue with moderate year-over-year growth of 4.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FREJO's fundamental strength across five key dimensions:
Efficiency Score
WeakFREJO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFREJO trades at attractive valuation levels.
Growth Score
WeakFREJO faces weak or negative growth trends.
Financial Health Score
ModerateFREJO shows balanced financial health with some risks.
Profitability Score
ModerateFREJO maintains healthy but balanced margins.
Key Financial Metrics
Is FREJO Expensive or Cheap?
P/E Ratio
FREJO trades at 1.78 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FREJO's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Federal Home Loan Mortgage Corporation PFD 5.1% SAL at 0.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -27.89 times EBITDA. This is generally considered low.
How Well Does FREJO Make Money?
Net Profit Margin
For every $100 in sales, Federal Home Loan Mortgage Corporation PFD 5.1% SAL keeps $8.09 as profit after all expenses.
Operating Margin
Core operations generate 91.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.19 in profit for every $100 of shareholder equity.
ROA
Federal Home Loan Mortgage Corporation PFD 5.1% SAL generates $0.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Federal Home Loan Mortgage Corporation PFD 5.1% SAL produces operating cash flow of $3.89B, showing steady but balanced cash generation.
Free Cash Flow
Federal Home Loan Mortgage Corporation PFD 5.1% SAL generates strong free cash flow of $3.89B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.99 in free cash annually.
FCF Yield
FREJO converts 4.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
48.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How FREJO Stacks Against Its Sector Peers
| Metric | FREJO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.78 | 18.66 | Better (Cheaper) |
| ROE | 16.19% | 804.00% | Weak |
| Net Margin | 8.09% | 2258.00% | Weak |
| Debt/Equity | 48.38 | 1.03 | Weak (High Leverage) |
| Current Ratio | 2.73 | 662.03 | Strong Liquidity |
| ROA | 0.31% | -24049.00% (disorted) | Weak |
FREJO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Federal Home Loan Mortgage Corporation PFD 5.1% SAL's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
754.29%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
64.37%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-45.67%
Industry Style: Value, Dividend, Cyclical
Declining