Federal National Mortgage AssociationFNMA
OTC Markets OTCQB•Financial Services•Mortgage Finance
Federal National Mortgage Association provides financing solutions for residential mortgages in the United States. The company operates in two segments, Single-Family and Multifamily. It offers mortgage acquisitions and securitizations; and credit risk and loss management services. The company also engages in mortgage securitization transactions, including lender swap, portfolio securitization, and structured securitization transactions; and credit risk and loss management services. Federal National Mortgage Association was incorporated in 1938 and is based in Washington, District Of Columbia.
Fannie Mae (FNMA) reported trailing twelve months revenue of $29.16B as of March 2026, a 0.3% increase year-over-year. Quarterly revenue reached $7.28B, reflecting continued top-line momentum.
Fannie Mae generated $14.42B in TTM net income, with quarterly EBITDA of $4.74B. The operating margin expanded from 61.8% to 65.1%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (65.1%) and net margin (51.1%) indicates moderate non-operating costs. Net margin has narrowed from 51.7% a year ago, reflecting increased costs or interest expense.
FNMA trades at a P/E of 3.0x (below the broader market average) and a P/S of 1.5x. The price-to-book ratio of 0.4x suggests the stock trades below its book value.
The company generated $16.48B in free cash flow over the trailing twelve months, a 370.3% increase year-over-year, indicating strong cash generation ability. The balance sheet shows $4.31T in total assets with $4.15T in long-term debt against $112.67B in stockholders equity for a debt-to-equity ratio of 36.9, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~62.6% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE averages 16.0% but has fluctuated — the competitive advantage may be cyclical or emerging.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 5.1% — watch for continued compression, which may signal competitive or cost pressure.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 36.9 — dangerously high. The company is heavily leveraged and vulnerable to rising rates or cash flow dips.
Revenue has softened, declining in 4 quarters. Monitor for further erosion.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Share count is stable — no significant dilution or buyback activity.