FRE Stock Report
2-Year Price History
Recent Price
(7/2 4:15PM)
+1.6%
$0.65
52-Week Price
$0.25 - $8.45
Market Capitalization
$421.3 Million
Most Recent Dividend
$0.50
A Word Of Caution
The Ockham Research Team has placed an alert on this security because there have been significant developments associated with Freddie Mac (FRE). Eventually, these externalities may have an impact on our valuation but these recent events have not yet been fully factored into our analysis.
Please take a moment to look at the RazorWire feed on the right hand side of the report. Each mention of Freddie Mac on business television will be displayed to the right of the report. This should help bring you up to speed on any major issues they are facing right now.
Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect these significant factors surrounding this company as our data sources are still being updated. This alert shall remain in effect until the situation surrounding this security normalizes substantially.
Therefore, (and as always), check additional sources and available information regarding FRE before making an investment decision.
Ockham's Rating
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FRE Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at FRE through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.04x and 0.64x respectively.
Utilizing this range we can see that FRE’s current Price to Sales per share ratio of 0.04x is significantly below its average levels historically. In fact, with a current price of $0.65, FRE is a full 96% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for FRE.
FRE Cash Earnings
Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on FRE from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company.
Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for FRE, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.
FRE Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for FRE to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The latest TV Media Discussion
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“…>> liz: have a lovely thank you for being with us. You too. >> liz: mortgage rates -- first, they were going up and everybody panicked. Now they're dropping across the country this week. FREDDIE MAC is out with the weekly survey. We talk about that in a but first, here comes the president barack obama to talk about innovation. >> I just held a meeting with …” …more details…
“…It with bonds and see the record number of issuance the past couple of months and lastly, about it. We did see them decline in the past week ap we've been following beyond yields ticking lower as well and the mortgage rates for FREDDIE MAC, the average 30 year fixed 5.32%, that's down from 5.42% a week ago, so you're seeing some improvement, but still, dagen, well above that 4.78% we saw …” …more details…
“…>> we got to go. >> happy 4th of july. >> keep it safe, keep it happy. We'll see you monday. >>> this is cnbc.Com news now. >> mortgage rates are falling, FREDDIE MAC's weekly survey shows the average 30 year rate up 5.32% this week, compared to 5.42% last week. …” …more details…
“…See may, 1.8% and factory orders coming in the largest since june of 2008. Up 1.2%, we also do have the latest on the 30 year mortgage rates from FREDDIE MAC, that's coming out at 5.32%. And that was down from 5.42% one week ago so you're seeing those, the average 30-year fixed …” …more details…
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“…There in the market, alexis, we don't have enough bank liquidity throughout to be able to provide that. If they do, we have different underwriting standards. Fannie mae and FREDDIE MAC were created to really set the stage for wall street to come in and provide liquidity. And they provided billions and trillions of dollars of liquidity in this last market …” …more details…
“…They manage to mess it up. Certainly, there's plenty of evidence to make that argument with fannie and freddie. Do you agree, has it given government involvement a black eye? >> I think as we think about the future of FREDDIE MAC and fannie mae, we have to have a much clearer dividing line between government and private sector. One key problem fannie and freddie this is they were …” …more details…
“…In the week. Especially leading up to the jobs number on thursday. When we come back in our next half hour, james lockhart being is the director of the federal house finance agency and director of FREDDIE MAC and FREDDIE MAC will be our special we'll get his perspective on the state of nation's mortgage industry as well as wilbur ross. …” …more details…
“…How far is too far? Wilbur ross will tackle that topic next. >>> a cnbc exclusive, james lockhart, regulator of fannie mae and FREDDIE MAC will be our he'll give us an update of the status of mortgage lending. Y the same tools the pros use,so you can be a disciplined trader. By selecting from eight your order gets executed, …” …more details…
“…Half of 2009. >>> the cnbc exclusive, james lockhart, director of the federal housing finance agency and regulator of fannie mae and FREDDIE MAC on the state of the mortgage market. "squawk box" begins right now. Will you came and you gave …” …more details…
“…>> appreciate that. Tampa police say they may get an autopsy done by this afternoon. Joining us from london this >>> when we come back, "squawk box" exclusive. Regulator of fannie mae and FREDDIE MAC will be our special >> not him. >> that's not him. >> that's robert wolf of ubs. >> we'll get the state of the -- >> or somebody. …” …more details…
“…Worked against everybody and caused the great depression. >> we don't know how much of a force they'll have to change anything. We see barney frank asking FREDDIE MAC and fannie mae to water down mortgage loans for condos. That's the issue. A lot of stuff they have to tackle. …” …more details…
“…>> liz: mortgage rates inching higher. FREDDIE MAC has weekly survey. Nationally, the 30-year fixed rate is climbing. Now it's still low but historically, I guess, but now at 5.42%. In a year, these may look …” …more details…
“…Headed by a man who invented the subprime instrument when it bought them and traded billions of securities to FREDDIE MAC and fannie mae over the last decade. I quote a sentence and will place in the record from bloomberg news, it was largely a result of creative work, slicing and cooling mortgages and selling them as bonds. He took the concept to FREDDIE MAC where he told it on a billion dollar package. That was the beginning. What can you provide this …” …more details…
“…>> mr. Chairman, let me ask you, when the government invested heavily in aig, fannie mae and FREDDIE MAC, management was actually replaced. Why was the fate of mr. Lewis so different? >> well, I think in this case …” …more details…
“…But we do not take daily that's not our job. >> mr. Chairman, let me ask you, when the government invested heavily in aig, fannie mae and FREDDIE MAC management was actually replaced. What -- why was the fate of mr. Lewis so different in this …” …more details…
“…In may, reported on extensively. It was designed to improve the reliability of home appraisals, stemmed from a lawsuit by new york attorney general andrew cuomo against washington mutual. Fannie mae and FREDDIE MAC said they will only buy loans that go by this new standard of appraisals which requires lenders and brokers to use independent appraisers, that is, put a firewall between the …” …more details…
“…No risk means no increase to short-term rates. The question is whether or not the fed will continue to buy treasuries and FREDDIE MAC they are likely to increase so so no key here. >> what does it mean to the market the fed monetizing the …” …more details…
“…What diana said was that the loan has to be approved through their automated system and then they wouldn't have these increased standards. So basically, 99.9% of all fannie mae and FREDDIE MAC loans must have an approval in their automated system. So chairman frank I think is just kind of doing this as a headline. He knows there's a lot of …” …more details…
“…Fewer than 70% of the units are they also won't purchase loans in buildings where 15% or more of the owners are delinquent on owner has more than 10% of the now, FREDDIE MAC will do the same next month. Condo sales nationwide were down 9.4% year over year in april compared to 3% for prices down 18.5% on condos, much worse than single-family. And there is a 15-month supply …” …more details…
“…Are a big chunk and that may be in part why the chairman of the financial house services committee barney frank and his fellow democrat anthony weiner sent this letter to the ceos of fannie mae and FREDDIE MAC that their restrictions on condos are just too onerous. For loans that were not underwritten through their automated system and the majority of their loans do go through the automated system it would no longer guarantee loans …” …more details…
“…From its previous forecast in due to lower purchase originations and much lower than affordable home refinance barney frank the chairman of the making a big push to have fannie mae and FREDDIE MAC relax mortgage standards for new cnbc's diana olick joins us in washington with that part of the >> reporter: well, maria, you hear that very sobering news …” …more details…
“…Where fewer than 77 units are sold. They will purchase loans in business where 15% or more when the owner has 10% of the units. FREDDIE MAC will do the same condo sales were down 9.40% year over year. 3% for single family. Prices on condo, down 8.5%. …” …more details…
“…That 10% unemployment rate on election date in 2010 equals no rate hikes. They will likely not increase treasury or fannie mae or FREDDIE MAC bond purchases, that they're on track. You won't see an increase there. And the $300 billion to buy treasuries expected to expire in the other issue, too, we saw …” …more details…
“…Intervention. No increase to short term interest rates and what are they going to say of the massive purchases of treasury and fannie mae and FREDDIE MAC purchases, they're on track, that 300 billion dollar program to buy treasuries is set to expire in september so there's a kind of cliff edge fear ma the market. What will it do to the bond …” …more details…
“…Maybe people wants a buy a home, maybe it's better it's tougher it's got to be bad for fannie mae and FREDDIE MAC. Those agencies probably outlived not their use feelness, at least their charter what they were create today do. >> except we need them really bad right now because they're all the mortgages, as we get …” …more details…
“…Would get into politically-driven credit allocation. That was -- that was a big drive that led us to the housing crisis that we had now -- >> it's a big issue. >> fannie mae and FREDDIE MAC and everybody saying, we want n more homeownership. That was true of the clinton administration and the bush administration. I fought off their efforts to say, no downpayment, we want everybody to have the american …” …more details…
“…About what is left out of the administration's plan. Why not, for instance, merge the s.E.C. And cftc. And what about the gses, fannie mae and FREDDIE MAC? >> fannie and freddie were a core part of what went wrong in our system. But congress did legislate last year a conference of change in the oversight regime. …” …more details…
“…We're thrilled he ways in. Everyone in silicon valley watches what he says. Thank you, shibani. Mortgage rates fell in the latest week, dropping for the first time since last month. FREDDIE MAC has the weekly survey. Look at the averages. >> david: nationally, the 30 year fixed rate is 5.38%. …” …more details…
“…Reporting the fed has been monotized in the congress' spending. We already have the political bankruptcies in g.M. And chrysler. We have fannie mae and FREDDIE MAC where congressmen practically herniated themselves before the crisis blew to defend these two. Now watch this. You'll have the federal reserve sitting on the sort of bloggers calling this justice league. …” …more details…
“…What you're seeing now is a potential abbragation of the fed. We had fannie mae and FREDDIE MAC where congressmen practically herniated themselves before the crisis blew up to defend these agencies. Now you see, and this is key, as the open market committee of the …” …more details…
“…Geithner tells lawmakers there's been no decision yet on extending the t.A.R.P. Program past its december 31st he says it's just too early to make that judgment. FREDDIE MAC says the average 30-year mortgage rate dropped this past week. It's now at 5.38% compared to 5.59% the prior week. And a bankruptcy judge granted a motion by general motors to …” …more details…
“…Francisco. Speaking of real estate, let's talk about mortgages. Mortgage rates went down, fell in the week dropping for the first time since last month. FREDDIE MAC with their weekly survey. The averages, nationally 30-year fixed rate at 5.38%. Northeast central regions have the highest rates in the country while the west has the lowest. …” …more details…
“…>> with the new consumer financial business. >> the body. >> or consumer products, played down that asked about fannie mae and FREDDIE MAC and so critical. He said now, the overhaul the gse's, they're government sponsored and not government owned. It's important and not the right time to do it part of this regulatory overhaul. >> he says that congress dealt with fannie mae and FREDDIE MAC. The question buning, fannie mae and FREDDIE MAC helped deal this crisis where the regulators …” …more details…
“…We saw over the last year, why are we punting to the future FREDDIE MAC and fannyie mae, maybe we'll get to it last year? >> good point. >> I mean, to me at least, it seems like we're ignoring a core …” …more details…