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

Is FNMAI undervalued?

Federal National Mortgage Association (FNMAI) closed at 6.04 on 16 Oct 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 94.69, 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 GLS Growth (14.63) and DCF (347.37). 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.

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

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 Sunday Scan's "6 or more" rule. 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 5.1/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.

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 723.1%. 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 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

No options are listed on Federal National Mortgage Association in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 39) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 1k shares a day on a market cap of $5.4B, 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 gives that 9 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 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 →