Federal Home Loan Mortgage Corp KN Pref (FMCKN) Fair Value & Analysis
Financial Services · US · Market cap $7.9B · ISIN US3134006655
Federal Home Loan Mortgage Corp KN Pref
FMCKN · US
Strengths
Risks
Fair value as of: Aug 17, 2026
From 6 valuation models · updated 11 days ago
Fair value updated Aug 17, 2026, revised from $2.54 to $2.55 (+0.2%) since Aug 13, 2026. Share price +4.3% over the past month.
A solid business, but trading 227% above our fair value.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case ($3.18). The favourable scenario is already priced in.
- Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 17, 2026.
How to read this chart
60‑month range $1.24 – $14.60 · fair‑value band $1.91 – $3.18 · the $8.34 price screens above the $2.55 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 17, 2026.
Analysis
Federal Home Loan Mortgage Corp KN Pref (FMCKN) currently trades at $8.34, while our model-based Fair Value estimate is $2.55, implying the stock looks roughly 69.5% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Federal Home Loan Mortgage Corp KN Pref generated revenue of $22.9B at a net margin of 50.3%. Revenue grew 15.8% year over year. It earns a return on equity of 16.9%. Net debt stands at $3.4T. Fundamentals as of Aug 17, 2026
Our scenario range runs from $1.91 (bear case) to $3.18 (bull case); at $8.34, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 43% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -19% fair-value upside, at -69%, FMCKN screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 6 models by family
Widest divergence: Earnings-Based ($116.59) versus Asset-Based ($14.64). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 17, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 49 · Market factors (momentum, volatility) 15
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. The company operates through two segments: Single-Family and Multifamily.
Full company description
Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. The company operates through two segments: Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment also serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, HFAs, savings institutions, and non-depository institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It also serves banks and other depository institutions, insurance companies, money managers, central banks, pension funds, state and local governments, REITs, non-depository institutions, and brokers and dealers. Federal Home Loan Mortgage Corporation was incorporated in 1970 and is headquartered in McLean, Virginia.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Federal Home Loan Mortgage Corp KN Pref reported revenue of $23.3B in FY2025 versus $4.4B in FY2021, a compound +51.9%/yr. Reported net income was $10.7B in FY2025, compounding −3.0%/yr from FY2021.
FMCKN screens 69% overvalued. Compare with Rocket Companies, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Is Federal Home Loan Mortgage (FMCC) A Bargain As Mortgage Rates Ease?
- Federal Home Loan Mortgage Corp (FMCC) (Q2 2026) Earnings Call Highlights: Net Income Surges ...
Peer Group
Mortgage Finance · 94 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Mortgage Finance median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Mortgage Finance stocks, each showing price versus our Fair Value estimate (as of Aug 17, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Rocket Companies, Inc RKT | $13.90 | $10.56 | -24% |
| Federal National Mortgage Association FNMAS | $10.06 | $2.01 | -80% |
| Bajaj Housing Finance Limited BAJAJHFL | ₹84.06 | ₹39.96 | -52% |
| PennyMac Financial Services, Inc PFSI | $72.90 | $125.45 | +72% |
| UWM Holdings UWMC | $1.46 | $0.1600 | -89% |
| PNB Housing Finance Limited PNBHOUSING | ₹1,169 | ₹1,143 | -2% |
| LIC Housing Finance Limited LICHSGFIN | ₹502.00 | ₹1,004 | +100% |
| Aadhar Housing Finance Limited AADHARHFC | ₹502.00 | ₹325.75 | -35% |
| Walker & Dunlop, Inc WD | $39.71 | $32.25 | -19% |
| Aptus Value Housing Finance India Limited APTUS | ₹258.50 | ₹244.80 | -5% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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