Federal Home Loan Mortgage Corporation (FMCKP)
Financial Services · OQB
Fundamentals
Valuation and ratings
Federal Home Loan Mortgage Corporation trades at USD14.05, which is 60% above the USD5.62 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 78 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 206.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
FMCKP dividend history
Dividends per share by year
| Year | Total per share | Payments |
|---|---|---|
| 2008 | USD1.43 | 2 |
| 2007 | USD2.85 | 4 |
| 2006 | USD2.85 | 4 |
| 2005 | USD2.85 | 4 |
| 2004 | USD2.85 | 4 |
| 2003 | USD0.713 | 1 |
Split-adjusted amounts in the listing currency, grouped by the calendar year of the ex-dividend date, from the filed record. Growth and streak figures compare complete years only.
About Federal Home Loan Mortgage Corporation
Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. The company operates through two segments: Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment also serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, HFAs, savings institutions, and non-depository institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It also serves banks and other depository institutions, insurance companies, money managers, central banks, pension funds, state and local governments, REITs, non-depository institutions, and brokers and dealers. Federal Home Loan Mortgage Corporation was incorporated in 1970 and is headquartered in McLean, Virginia.
FMCKP passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Federal Home Loan Mortgage Corporation (FMCKP) undervalued?
Against our discounted cash flow estimate of USD5.62, FMCKP at USD14.05 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is FMCKP's P/E ratio?
FMCKP trades at 206.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.