Federal Home Loan Mortgage Corporation

FMCC

Financial - Mortgages · Financial Services

Price

$5.78

+0.16 (+2.85%)

Market Cap

$3.76B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Strong

Stability

Weak

Valuation

Good

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Winston Score History

The full picture

Federal Home Loan Mortgage Corporation, known as Freddie Mac, helps Americans buy homes by making it easier for banks to lend money. It does this by purchasing mortgages from banks and lenders, bundling them together, and selling them to investors as mortgage-backed securities. This keeps money flowing through the housing market so lenders can keep making new home loans.

Freddie Mac earns money by charging a fee, called a guarantee fee, to take on the risk that borrowers might not repay their loans. It operates almost entirely in the United States and is one of the two dominant players in the secondary mortgage market, alongside Fannie Mae. Freddie Mac has been under U.S. government conservatorship since 2008, meaning the government controls it, and its future structure — including whether it will ever be fully privatized again — remains the central uncertainty investors watch closely.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.5% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+56.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

0.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$3.4T cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Federal Home Loan Mortgage Corporation is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 3.23B (2021) → 3.23B (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

17.5%

Thin — 17.5% gross margin

Profit after running costs

Operating Margin

13.9%

Healthy — 13.9% operating margin

Return on the money invested

ROCE

2.8%

Weak — 2.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+6.0%

Slow sales growth (+6.0% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

110%

Turns 110% of profit into real cash

Spare cash per sale

FCF Margin

10.6%

Modest free cash flow (10.6%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

43.96

Heavy debt load (43.96)

Covers its interest

Interest Cover

0.89x

Dangerous — barely covers interest (0.9x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit

P/E Ratio (TTM)

0.3x

Attractive valuation — P/E 0.3

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-1.1

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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