Federal Home Loan Mortgage CorporationFMCC
OTC Markets OTCQB•Financial Services•Mortgage Finance
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.
Freddie Mac (FMCC) reported trailing twelve months revenue of $23.55B as of March 2026, a 1.9% decline year-over-year. Quarterly revenue reached $6.13B, reflecting a contraction in sales.
Freddie Mac generated $11.49B in TTM net income, with quarterly EBITDA of $3.92B. The operating margin expanded from 46.7% to 63.9%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (63.9%) and net margin (58.0%) indicates moderate non-operating costs. Net margin has improved from 47.7% a year ago, signaling stronger bottom-line efficiency.
FMCC trades at a P/E of 1.7x (below the broader market average) and a P/S of 0.8x. The price-to-book ratio of 0.3x suggests the stock trades below its book value.
The company generated $3.87B in free cash flow over the trailing twelve months, a 8.3% increase year-over-year, indicating cash generation ability. The balance sheet shows $3.51T in total assets with $169.85B in long-term debt against $73.92B in stockholders equity for a debt-to-equity ratio of 2.3, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~49.6%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 18.2% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue shows resilience with 4 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~53.8% — no sign of cost or pricing stress.
FCF covers net income by 1.2x on average — earnings are well-supported by cash generation.
D/E ratio of 2.3 is elevated. Monitor for further debt accumulation.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.