Stock fact sheet · data as of
Federal Home Loan Mortgage Corporation PFD 5.30% (FREJP): fair value, margin of safety and Wheel Score
Ticker symbol FREJP · Financial Services · Financial - Mortgages · United States · Fund / Note
Is FREJP undervalued?
FREJP has a margin of safety of 95%: the stock closed at 9.37 on 5 Nov 2026 against a GLS average fair value of 189.49. 8 of the 8 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between Lynch (35.64) and DCF (814.17). 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.
FREJP looks like a fund, note or preferred share rather than an operating company, so the nightly engine files it under Fund / Note: the valuation models are not built for it, and its Wheel Score is capped at 45.
Nine valuation models for FREJP
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.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 814.17 | +8589% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 48.33 | +416% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 143.75 | +1434% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 35.64 | +280% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 139.01 | +1384% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 126.44 | +1249% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 109.58 | +1069% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 99.00 | +957% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -10,989.80 | -117387% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Federal Home Loan Mortgage Corporation PFD 5.30% scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. There is no GLS Moat score for FREJP: funds, notes and second share lines get none, and so does a company with fewer than two years of accounts on file. The Moat part of the Wheel Score is zero.
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 PFD 5.30% 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.
| Piotroski F-score | 8 / 9 | ROIC | 0.3% |
|---|---|---|---|
| GLS Moat | - / 10 | ROE | 15.2% |
| Debt / equity | 48.38 | ROA | 0.3% |
| Free-cash-flow yield | 473.7% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 30: No options
No options are listed on Federal Home Loan Mortgage Corporation PFD 5.30% in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 30, 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 0k shares a day on a market cap of $2.8B, with a beta of 0.54 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | no listed options |
| 2 | A real business, not a gamble | Fails | a fund or note, not a company |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | no implied volatility |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 95% below fair value | |
| Premium | Weak | no option data | |
| Moat | Weak | no moat score | |
| Health | Strong | Piotroski 8/9 | |
| Red Flags | Fair | not scored yet - half marks | |
| Option trading | Weak | no option volume data | |
| Stability | Fair | beta 0.54, $2.8B company |
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 FREJP 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 PFD 5.30% 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.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| FMCKM Freddie Mac 5.57% Non-Cum. Perp. Pfd. | 5.86 | 167.92 | +97% | 28No options | $2.8B |
| FMCCG Federal Home Loan Mortgage Corporation | 9.80 | 192.13 | +95% | 34No options | $2.8B |
| FMCCH Freddie Mac 5.1 % Non-Cum Pfd | 9.10 | 187.83 | +95% | 29No options | $2.8B |
| FREJO Federal Home Loan Mortgage Corporation PFD 5.1% SAL | 12.55 | 209.04 | +94% | 29No options | $2.8B |
| FMCC Federal Home Loan Mortgage Corporation | 4.36 | 158.69 | +97% | 33No options | $2.8B |
| FMCCI Federal Home Loan Mortgage Corporation | 9.02 | 187.34 | +95% | 34No options | $2.8B |
| FMCCN Federal Home Loan Mortgage Corporation | 9.36 | 189.43 | +95% | 34No options | $2.8B |
| FMCKK Freddie Mac 5% Non Cum. Pfd. | 9.33 | 189.25 | +95% | 29No options | $2.8B |
| FMCCM Freddie Mac Non-Cum Variable Rate Pref | 9.31 | 189.13 | +95% | 34No options | $2.8B |
| FMCCS Federal Home Loan Mortgage Corporation | 9.64 | 191.15 | +95% | 34No options | $2.9B |
| FMCCK Federal Home Loan Mortgage Corporation | 9.90 | 192.75 | +95% | 34No options | $2.6B |
| FMCKI Federal Home Loan Mortgage Corporation | 5.61 | 166.38 | +97% | 34No options | $3.1B |
⚖ Compare FREJP with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about FREJP
Is FREJP undervalued right now?
By the GLS models, yes: at 9.37 the stock is 95% below the average fair value of 189.49 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of FREJP and what does it mean?
FREJP has no listed options in our nightly snapshot, so it cannot be wheeled; it fails the first Wheel Trade Filter (options that actually trade), stays under 70 and is shown as "No options".
What is the GLS fair value for FREJP?
189.49 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Federal Home Loan Mortgage Corporation PFD 5.30% report earnings next?
No upcoming earnings date is recorded for FREJP in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does FREJP have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on FREJP, so the wheel strategy cannot be run on it and the Wheel Score stays under 70.