Freddie Mac (FHL) AI Stock Analysis

Freddie Mac

(Stuttgart:FHL)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Revenue and Profit GrowthSustained expansion in revenue, profit dollars, and net margin indicates stronger earnings capacity than in the prior year. This scale supports continued investment in housing-market capabilities, while improved profitability provides a stronger foundation for retaining capital and supporting operations.

Negative Factors

Heavy LeverageThe extremely debt-heavy balance sheet leaves Freddie Mac structurally sensitive to funding conditions and changes in mortgage-asset values. Although equity has increased, the large financing base can amplify pressure on financial flexibility and earnings when market or credit conditions deteriorate.

Freddie Mac (FHL) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 3.04B
Dividend Yield: ―
Average Volume (3M): 6,000
Price to Earnings (P/E): 417.0
Beta (1Y): 0.26
Revenue Growth: -0.56%
EPS Growth: ―
Country: Germany
Employees: 7,334
Sector: Financial
Sector Strength: 68
Industry: Financial - Mortgages

Freddie Mac Business Overview & Revenue Model

Company Description

Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, is a key participant in the United States' secondary mortgage market. Its primary activities involve acquiring residential mortgage loans, encompassing both single-family homes an...

Freddie Mac Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:12.92%|Next Earnings Date:Feb 17, 2027

Earnings Call SentimentPositive

The call was generally positive, with strong year-over-year growth in net income, net revenue, net worth, portfolio size, single-family earnings, and multifamily earnings, alongside continued housing-market support and operational efficiency efforts. The company also reported solid new-business credit metrics and expanded affordable-housing activity. These positives were tempered by higher credit-loss provisions, increased delinquency rates, elevated mortgage rates, weaker multifamily new business activity, challenging multifamily market conditions, and a $98 billion capital shortfall excluding buffers.

Positive Updates

Support for 420,000 Families and Affordable Housing

Freddie Mac's support during the third quarter helped 420,000 families buy, refinance or rent a home. The majority of financed houses and apartments were affordable to working families earning 120% or less of area median income, including 91% of eligible rental units and 56% of single-family homes. Among primary-residence purchasers, 51% were first-time homebuyers.

Negative Updates

Higher Provision for Credit Losses

The company recorded an $800 million provision for credit losses, compared with $175 million in the prior-year quarter. The provision primarily reflected a single-family credit reserve build resulting from an increase in projected future mortgage interest rates and new acquisitions, while current portfolio performance remained stable.

Company Guidance

The current forecast assumes house prices will grow by 1.3% over the next 12 months and 1.5% over the subsequent 12 months; the shift toward fully guaranteed securitizations is expected to enhance the stability of multifamily earnings over time, while Freddie Mac remains focused on providing liquidity throughout the economic cycle, supporting sustainable homeownership, and making housing finance more efficient and affordable.

Freddie Mac Risk Analysis

Freddie Mac disclosed 2 risk factors in its most recent earnings report. Freddie Mac reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Freddie Mac Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:FHL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RKT	66Neutral	$36.24B	29.60	5.55%	―	88.49%	394.41%
PFSI	57Neutral	$3.27B	14.20	5.54%	1.84%	7.24%	-52.33%
UWMC	43Neutral	$2.52B	-19.60	-20.07%	25.48%	11.65%	-440.08%
WD	40Underperform	$1.19B	30.56	2.33%	7.58%	9.22%	-65.41%
LDI	39Underperform	$195.79M	-2.01	-30.86%	―	17.11%	9.17%

* Financial Sector Average

Performance Comparison

DE:FHL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:FHL	Freddie Mac	3.67	-4.68	-56.05%
WD	Walker & Dunlop	35.76	-39.86	-52.71%
PFSI	PennyMac Financial Services	65.32	-58.08	-47.07%
LDI	loanDepot, Inc.	0.61	-2.18	-78.24%
UWMC	Uwm Holdings Corporation	1.57	-3.59	-69.55%
RKT	Rocket Companies Inc	13.77	-2.53	-15.52%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Freddie Mac AI Stock Analysis