Fannie Mae (OTCQB: FNMA) is a government-sponsored enterprise that plays a pivotal role in the U.S. housing finance system by providing liquidity to the mortgage market. It competes with entities like Freddie Mac in the secondary mortgage market. On February 14, 2025, FNMA reported an earnings per share of $0.695, surpassing the estimated $0.63.
Despite exceeding earnings expectations, FNMA's revenue of $7.3 billion did not meet the forecasted $7.6 billion. For the full year of 2024, FNMA reported a net income of $17 billion, with $4.1 billion generated in the fourth quarter alone, as detailed in their 2024 Form 10-K filed with the SEC.
FNMA's financial metrics present a mixed outlook. The company has a low price-to-earnings (P/E) ratio of 2.47, suggesting a low valuation relative to its earnings. However, the enterprise value to sales ratio is high at 34.66, indicating a high valuation when considering sales. The enterprise value to operating cash flow ratio is extremely high at 1064.17, pointing to low cash flow relative to enterprise value.
The company's earnings yield stands at 40.42%, indicating a strong return on investment. However, FNMA's debt-to-equity ratio is notably high at 46.59, reflecting a significant 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.
