Fannie Mae (PNK:FNMA), a government-sponsored enterprise, plays a crucial role in the mortgage market by providing liquidity through the purchase and guarantee of mortgages. This ensures that lenders have the necessary funds to offer home loans. FNMA competes directly with Freddie Mac in the mortgage finance industry.
FNMA is set to release its quarterly earnings on Thursday, February 13, 2025, at 8:30 AM Eastern Standard Time. Analysts have set the earnings per share (EPS) expectation at $0.63, with projected revenue of approximately $7.36 billion. This release will offer valuable insights into the company's financial health and performance over the past quarter.
Additionally, Fannie Mae will disclose its fourth quarter and full-year 2024 financial results on February 14, 2025, before the U.S. financial markets open. The company has scheduled a conference call at 8:00 a.m. ET to discuss these results. Prior to the call, FNMA will make its earnings news release and annual report accessible on its website.
The company's financial metrics present a mixed picture. FNMA has a price-to-earnings (P/E) ratio of 2.42, indicating a low valuation relative to its earnings. However, its enterprise value to sales ratio is high at 34.65, suggesting a premium valuation in relation to sales. The enterprise value to operating cash flow ratio is extremely high at 1064.13, raising concerns about the company's cash flow efficiency.
FNMA's earnings yield is significant at 41.30%, potentially attracting investors seeking income. Nevertheless, the debt-to-equity ratio is notably high at 46.59, indicating a considerable level of debt compared to equity. Despite this, the current ratio of 3.85 suggests that FNMA has a strong ability to cover its short-term liabilities with its short-term assets, indicating good liquidity.
