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

Is FMCKO undervalued?

Federal Home Loan Mortgage Corporation (FMCKO) closed at 5.37 on 5 Nov 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 164.90, which puts the price 97% below it. 8 of the 8 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.

The 8 models disagree widely: Lynch gives 20.43 while DCF gives 814.21. 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.

Ranked against every other company we cover, FMCKO is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 97, growth score 55, out of 100).

Nine valuation models for FMCKO

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

Financial health is average - FMCKO passes 6 of the nine Piotroski tests, which passes the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 6.4 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.

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 473.7%. 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 86%, Multifamily 14% (quarter Q3 FY2026).

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

Wheel Score 33: No options

FMCKO has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business. It fails the first Wheel Trade Filter (options that actually trade), so the score stays under 70 and is shown as "No options" (33 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 6k shares a day on a market cap of $2.2B, 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 rates that weak.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for FMCKO in the nightly calendar.

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 FMCKO with 7 of them   All Financial Services stocks →