Federal Home Loan Mortgage Corporation (FMCCS): fair value, margin of safety and Wheel Score

Is FMCCS undervalued?

At 9.49 (close of 16 Oct 2026), FMCCS trades 92% below the GLS average fair value of 119.69. That average comes from 7 models run on the latest filings, and 7 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Federal Home Loan Mortgage Corporation the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The 7 models disagree widely: Lynch gives 45.63 while Graham Growth gives 184.05. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files FMCCS under Value: positive earnings at a P/E of 18 or less.

Nine valuation models for FMCCS

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health FMCCS scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 4.9 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 0.3%, ROE 15.2%, ROA 0.3% - with debt at 48.38 times equity and a free-cash-flow yield of 659.9%. Debt of 48.38 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.

Federal Home Loan Mortgage Corporation pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Single Family Guarantee 85%, Multifamily 15% (quarter Q2 FY2026).

Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 39: No options

FMCCS has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 1k shares a day on a market cap of $2.5B, with a beta of 1.67 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 8 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 4 Nov 2026 (before the open), 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Financial - Mortgages

The 12 companies below are the closest to Federal Home Loan Mortgage Corporation by market cap within the Financial - Mortgages industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare FMCCS with 7 of them   All Financial Services stocks →