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    Insight
    published
    2025-12-30

    FNMA report

    Stock Analysis Template

    Company Information

    • Name: FNMA
    • Ticker: FNMA
    • Sector: [Sector]
    • Market Cap: [Market Cap]

    1. Financial Health Check

    • Revenue: $31.05B
    • Net Income: $16.98B
    • Net Margin: 54.67%
    • Revenue Growth (3yr CAGR): N/A (Need historical data)
    • ROE (Return on Equity): N/A (Missing Equity)
    • ROIC (Return on Invested Capital): [ROIC (Return on Invested Capital)]
    • Debt/Equity: N/A (Missing Liabilities)
    • Free Cash Flow Yield: [Free Cash Flow Yield]
    • Free Cash Flow Trend: [Free Cash Flow Trend]

    2. Financial Trends

    Revenue vs Net Income

    3. Historical Data

    YearRevenueNet IncomeGross ProfitOp. Cash Flow
    202431.05B16.98B31.05B-10.52B
    202331.94B17.41B31.94B11.88B
    202224.53B12.92B24.53B43.83B
    202136.61B22.18B36.61B47.21B
    202023.03B11.80B23.03B-72.93B

    4. Competitive Advantage (Moat)

    • Type of Moat: Network Effect
    • Strength: Wide
    • Description: Fannie Mae's established position in the mortgage market and its role in standardizing mortgage-backed securities create a network effect. The more participants use Fannie Mae's services, the more valuable those services become to other participants, making it difficult for new entrants to compete. They guarantee a very large percentage of mortgages allowing for revenue consistency.

    5. Management Quality

    • CEO: Peter Akwaboah (Acting)
    • Capital Allocation: Focus on building capital through retained earnings. No explicit mention of dividends, buybacks, or M&A in this excerpt. Primary focus is on meeting regulatory capital requirements.
    • Tone: Cautious
    • Key Quotes:
      • "We remain focused on building capital through strong earnings, disciplined risk management and operational efficiency to deliver meaningful results for homeowners and renters across America."
      • "...our guaranty business continues to serve as a consistent and durable foundation for our revenue base. We remain committed to building regulatory capital and supporting the housing market, while operating in a safe and sound manner."

    6. Growth Prospects

    • Total Addressable Market (TAM): [Size and Growth Rate]
    • Market Share: [Current share and potential to gain]
    • New Products/Services: [Pipeline]

    7. Scuttlebutt & Soft Data

    • Customer Reviews: [Trends in customer satisfaction]
    • Employee Feedback: [Glassdoor ratings, turnover]
    • Channel Checks: [Insights from suppliers or distributors]

    8. Valuation

    • P/E Ratio: [Current vs. Historical vs. Peers]
    • EV/EBITDA: [Current vs. Historical vs. Peers]
    • DCF Fair Value: [Estimate]

    9. Risks

    • [Risk 1: Affordability headwinds and buyer caution impacting the housing market.]
    • [Risk 2: Multifamily challenges leading to increased delinquencies and net charge-offs.]
    • [Risk 3: Failure to meet regulatory capital requirements. The company has a significant regulatory capital deficit.] ```

    10. Checklist

    • Do I understand the business model?
    • Is the balance sheet healthy?
    • Is management aligned with shareholders?
    • Is the valuation reasonable?
    • Is there a clear catalyst?