Federal National Mortgage Association (FNMAI): fair value, margin of safety and Wheel Score

Is FNMAI undervalued?

Federal National Mortgage Association (FNMAI) closed at 5.67 on 5 Nov 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 88.53, which puts the price 94% 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.

There is a wide gap between Lynch (8.21) and DCF (416.79). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

Ranked against every other company we cover, FNMAI is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 96, growth score 37, out of 100).

Nine valuation models for FNMAI

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

Federal National Mortgage Association scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability FNMAI scores 6.0/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.

Returns on capital are thin or negative - ROIC 0.3%, ROE 13.2%, ROA 0.3% - with debt at 38.35 times equity and a free-cash-flow yield of 395.5%. Debt of 38.35 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 National Mortgage Association 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 Multifamily 100% (quarter Q3 FY2026).

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

Wheel Score 33: No options

No options are listed on Federal National Mortgage Association in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 33, under 70) and is left out of every options scan; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 24k shares a day on a market cap of $5.5B, with a beta of 1.71 - 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 fair.

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 FNMAI 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 National Mortgage Association 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 FNMAI with 7 of them   All Financial Services stocks →