FRE Investment Analysis Report & Stock Research, Freddie Mac

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Freddie Mac (FRE)

FRE Stock Report

2-Year Price History

Recent Price
(6/5 4:00PM)
$0.76
52-Week Price
$0.25 - $16.59
Market Capitalization
$492.6 Million
Dividend Yield
0.00%
Most Recent Dividend
$0.50
All Financial News about FRE is here.

About Freddie Mac

Freddie Mac is considered to operate in the Financial sector. They specifically operate in the Mortgage Investment business segment contained within the Real Estate industry.

The Company conducts business in the U.S. residential mortgage market and the global securities market through three reportable segments: Investments, Single-family Guarantee and Multifamily.

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 left had 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

Rating specific information requires Premium Access.
Buy Now or Take the Tour.

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 1.06x and 0.65x 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 $0.76, FRE is a full 95% 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

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

Peer Comparison

:

Freddie Mac Industry Grouping

(6/5/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding FRE) 38.08 18.43 » 94.58 5.68 2.10 » 14.26 7.63% 11.10%
*10 year range does not include current year values
LTC Properties, Inc. LTC $507.7 Million $21.91 17.96 4.63 » 41.70 6.43 0.80 » 10.37 1.18% 19.68%
Investors Real Estate Trust SBI IRET $507.5 Million $8.58 71.50 20.48 » 98.17 2.12 1.11 » 3.57 13.24% 4.62%
Inland Real Estate Corp. IRC $502.8 Million $7.51 17.07 11.50 » 33.90 2.45 2.66 » 6.87 3.16% 11.06%
Freddie Mac FRE $492.6 Million $0.76 -1.00 3.66 » 25.25 0.04 0.00 » 1.62 6.68% 6.26%
Getty Realty Corp. Holding GTY $489.1 Million $19.75 12.12 5.81 » 26.42 6.02 2.37 » 11.30 3.61% 18.52%
Tejon Ranch Co. TRC $476.0 Million $27.99 71.77 49.76 » 272.70 11.40 3.55 » 39.20 16.94% 1.64%
>
Ockham Ratings & Analysis Report
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The latest TV Media Discussion

3:20:03 PM FRE $0.74 Freddie Mac
3 days ago (06/04)
“…Sandra was just talking about silver on track to outperform other precious metals. Can turquoise be far behind? For the latest news at foxbusiness.Com. FREDDIE MAC mortgage rate here year to date high. That's more from it's a great site with wonderful articles on there. While you are logged on send me an e-mail to [email protected] …” …more details…
3:09:07 PM FRE $0.74 Freddie Mac
3 days ago (06/04)
“…Beat estimates on wall street. An increase in layoffs and fewer labor cost was up by 3%. Likely higher than expected. >>> according to FREDDIE MAC, interest rates on the 30-year fixed rate mortgages jumped .4% this week to 5.29%, the highest …” …more details…
2:40:31 PM FRE $0.74 Freddie Mac
3 days ago (06/04)
“…A mortgage less than 6%. 5% looks good to me. Will it go up from here? >> it's a great rate but we're close to 5 1/2%. The FREDDIE MAC rates we had just shown on the slide are nice for historical reference but it represents where we were last week. It's a little dated and in …” …more details…
2:39:37 PM FRE $0.74 Freddie Mac
3 days ago (06/04)
“…A lot of people waiting for the jobs report tomorrow. We talked about that as well. >> liz: mortgage rates continuing to move higher. I can't even say creep. Spike more like it across the country. FREDDIE MAC is out with the weekly survey. A look at the averages for you. Nationally and across the regions, the 30-year fixed rate is back up, I know, sorry, past the 5% mark. Hitting a 25-week high. …” …more details…
1:00:05 PM FRE $0.74 Freddie Mac
3 days ago (06/04)
“…And what's carl icahn's next big we are back on the other side with another edition of "power >>> FREDDIE MAC says the average 30-year fixed rate mortgage now at 5.29%. Up from 4.91% just last week. Texas charging vp with 46 violations of the state's clean …” …more details…
10:05:42 AM FRE $0.74 Freddie Mac
3 days ago (06/04)
“…I do agree enter viewing him and I agree that's probably the reason why. Mark was down there talking to scott and rebecca, we got the number for 30-year fixed rate mortgages from FREDDIE MAC. This is one of our favorite ways to look at that. The week before it was 4.91. That's profitof of the concern a …” …more details…
10:02:07 AM FRE $0.74 Freddie Mac
3 days ago (06/04)
“…So we are going from the near historically low levels jumping up as we've seen bond yields jumping up as well in the past week and the 30-year fixed mortgage rate at 5.29% from FREDDIE MAC and of course, one of the big economic reports from earlier this morning, dagen, we were talking jobless numbers ahead of tomorrow's monthly report and let's look at the latest weekly report if we can. 621,000 new jobless claims in …” …more details…
10:01:38 AM FRE $0.74 Freddie Mac
3 days ago (06/04)
“…Down 8.3 billion dollars in the past week versus a decline the now we did in addition to that one also want to update you on the 30 year fixed mortgage rates crossing the wires from FREDDIE MAC and that rate at 5.29% this week, and we've talked about that as we saw the number of re-fis in particular dropping precipitously as we saw mortgage …” …more details…
12:00:43 PM FRE $0.75 Freddie Mac
4 days ago (06/03)
“…Mr. Summers, who heads the national economic planning council, is a major investor just got several no bid contracts from the fed, including one to manage FREDDIE MAC and fannie mae's trouble portfolios. I think that's one of the contracts you signed with did the fed know that mr. Fink is the person who first created the collateralized mortgage obligation when he headed first boston and then he brought that instrument to FREDDIE MAC and initially sold it to them for over a billion dollar of such obligations making huge profits for himself and his firm. He's now the fed's go-to man through his firm on FREDDIE MAC workouts. I have a question about the revolving door and how do you protect the company for his company or that company's possible conflict of interest in dealings and involving his historic involvement with those mortgage portfolios. >> the federal reserve is different from FREDDIE MAC, we have nothing to do with freddie I don't understand your >> you have signed a contract with black rock to manage the freddie and fannie portfolios, have you not, the troubled mortgages within those portfolios. >> not to my knowledge. …” …more details…
11:59:58 AM FRE $0.75 Freddie Mac
4 days ago (06/03)
“…National economic planning council is a major investor just got several no-bid contracts from the fed, including one to manage FREDDIE MAC and fannie mae's troubled portfolios. That's one of the deals you signed with blackrock. Is mr. Fink the first to collateralize the mortgage …” …more details…
11:59:33 AM FRE $0.75 Freddie Mac
4 days ago (06/03)
“…>> brian: thank you. >> dagen: we will be with us all day and all day tomorrow, right now we have to take it back to washington d.C., ben bernanke on the hot seat. >> with FREDDIE MAC and fannie mae and I wish to state this for the record, laurence fink, head of blackrock now 47% owned by bank of america in which …” …more details…
11:59:32 AM FRE $0.75 Freddie Mac
4 days ago (06/03)
“…>> not necessarily. >> are you aware one of the contracts blackrock manages for the fed may be compromised. That's the one -- more than one compromised dealed with FREDDIE MAC and fannie maye. I wish to state this for the record, lauren stink which is 47% opened by bank of america …” …more details…
5:46:29 PM FRE $0.77 Freddie Mac
Happy Hour
5 days ago (06/02)
“…Here is your "fox business" red ink portfolio. Here is chunk of it, aig and citi. That stock we own. Gm chrysler, $76 billion. Fannie mae and FREDDIE MAC, $500 billion. $785 billion. We're not seeing any return on that investment yet. Give me the next chart. Toll brothers, talked about it earlier, has done pretty well, considering homebuilders have been …” …more details…
6:08:17 PM FRE $0.78 Freddie Mac
Mad Money
6 days ago (06/01)
“…Down side was minimal, and the time was right to buy, I didn't think the risk-averse crowd would come in until gm was dealt with. It's important to recognize that as with aig, fannie mae, FREDDIE MAC, and lehman it didn't matter how, how they were resolved as those black holes like gm really had been filled only in the most …” …more details…
6:04:57 PM FRE $0.78 Freddie Mac
Mad Money
6 days ago (06/01)
“…Today, in a completely gratuitous slap at bernanke, liz rapaport -- I know she didn't write the headline. "fed mortgage efforts prove costly." criticizing bernanke for his incredibly prescient plan to buy fannie mae and FREDDIE MAC mortgages to keep rates down. Do you know, the only reason they're rising now is because of it's not inflation. People are buying homes like mad now in major parts of this country, and there's tremendous demand for mortgages. …” …more details…
6:04:13 PM FRE $0.78 Freddie Mac
Mad Money
6 days ago (06/01)
“…So you know exactly why I tell people to come on, get in, it's what were the original seven? What black holes did I say must be addressed to avoid first I said fannie mae and FREDDIE MAC had to be put out of their misery and seized by the government before all the different securities they issued to fund themselves would be worthless. Black holes filled for certain. Although too late not to kill …” …more details…
4:56:50 PM FRE $0.80 Freddie Mac
6 days ago (06/01)
“…We're not in kansas anymore. This bizarro world we live if right now, our government, the definition of capitalism in this country has our government owning aig, fannie mae, FREDDIE MAC, general motors, citibank, chrysler, government-owned I don't even know what to >> tobin smith, the american business landscape changes >> well, I think the biggest …” …more details…
4:49:19 PM FRE $0.77 Freddie Mac
9 days ago (05/29)
“…>> there was a lot of refinance activity at 4%. Mortgage rates are going up because the fed wants to buy 1.5 million in FREDDIE MAC, do you think this will work to keep mortgage rates down, to keep treasury yields down? >> interest rates are going up. …” …more details…
3:44:56 PM FRE $0.78 Freddie Mac
9 days ago (05/29)
“…Rubber stamping everything out there. Not at all. Not by any stretch of the >> let's look at mortgage rate numbers we've seen, the recent ones and keep in mind the fha numbers, fannie mae, FREDDIE MAC are one at the top here. So these are still pretty darned low, aren't they? >> yes, indeed. So, the 30-year fixed conforming …” …more details…
12:54:43 PM FRE $0.77 Freddie Mac
9 days ago (05/29)
“…Saying we're going to spend $6.7 trillion. We see treasury yields possibly popping higher. The fed has been moving rapidly against government borrowing to buy treasuries and the fannie mae, FREDDIE MAC securitization. The $300 billion, that's a drop in the bucket. They have to ramp that up more to keep the rates down. >> cheryl: and pressuring the sell side. …” …more details…
11:06:52 AM FRE $0.78 Freddie Mac
9 days ago (05/29)
“…Investment portfolios and all protected. This has been a very long-term disciplined getting prepared. About it. I mean, we cut off fannie mae and FREDDIE MAC from being-- from our being invested in under adventures three years ago, had the rest of the industry done that would the freddie and fannie have gotten in the mess probably not. …” …more details…
11:04:03 AM FRE $0.78 Freddie Mac
9 days ago (05/29)
“…Have a high cash position, runs about 21, 22%. We have some short, two year three-year along in there, agency from fm, FREDDIE MAC, home loan bank and we have been buying mortgage products. Mortgages issued in 2003 and 2002, these are ones which they were fully sort of underwritten with, we asked people how much …” …more details…
10:42:04 AM FRE $0.78 Freddie Mac
9 days ago (05/29)
“…It's seen unreal lied losses on the treasuries, 10 to 15 billion bucks and the fed is buying 11/4 trillion dollars in fannie mae and FREDDIE MAC mortgage securities and equal to the sum of the new treasury debt issued, the fed is racing to catch up but what's going on, chris, is that rates are moving inexorably …” …more details…
10:21:58 AM FRE $0.78 Freddie Mac
9 days ago (05/29)
“…Okay, we are going to start with the ugly because you went through the crisis, you have you run a concentrated portfolio and it has been 33 stocks in it you own FREDDIE MAC during the down turn, you owned aig and you owned countrywide. What's the mistake you made that those were similar stocks and not diversified in the sense that they were overleveraged, …” …more details…
8:22:42 AM FRE $0.78 Freddie Mac
Squawk Box
9 days ago (05/29)
“…>> I think, if we go -- we're just slightly below 5% last week on the conforming loan. If we go above 5%. >> now at 5.44%. >> well, the rate I look at is the FREDDIE MAC conforming loan that was 4.84% last week. If we go to 5% and if we stay period of time, I think that really will be a problem. That will short circuit -- …” …more details…
8:22:06 AM FRE $0.78 Freddie Mac
Squawk Box
9 days ago (05/29)
“…Have to, but they would buy up I was hoping they'd get it down to 4.5%. You've got $3 trillion of mortgage debt, fannie mae and FREDDIE MAC debt that could be refinanced at 4.5%. I was hoping we'd get there. 5% would be a problem. >> okay, mark. I've got to stay on the detour, at least for one more second …” …more details…
6:52:57 PM FRE $0.78 Freddie Mac
Mad Money
10 days ago (05/28)
“…Companies that don't need the that's why I like them and why it works in their favor. Here's one from mark. Hey, cramer. I was watching your show yesterday and were you talking about the samb by stocks such as fannie mae, FREDDIE MAC and I think you need to create a new category for the show in addition to the sell block and the wall of shame called "the litter box" where can you put stocks that fit the description. Just a thought. Mark is right. …” …more details…
4:47:31 PM FRE $0.78 Freddie Mac
10 days ago (05/28)
“…Treasury yields recently and in turn sending mortgage rates >> FREDDIE MAC mortgages are up to 4.91% for 30 year fixed today and 15 year fixed at 4.53. With us for more on housing is …” …more details…
10:15:26 AM FRE $0.78 Freddie Mac
10 days ago (05/28)
“…Since we were last here at the morningstar conference from the bankruptcy of lehman brothers, the american taxpayers owned the majority of aig, fannie, FREDDIE MAC, merrill lynch, wachovia, wamu, you name it and of course then is the bernie madoff scandal and here to make sense …” …more details…
10:02:49 AM FRE $0.79 Freddie Mac
10 days ago (05/28)
“…Four states, that is california, nevada, arizona, florida. They represent 46% of the foreclosure starts in the u.S. What about the big obama plan? FREDDIE MAC is reporting upwards of half of all past due loans are on empty homes. That is, the borrower is gone. They don't want a modification. Erin, back to you. …” …more details…
6:51:53 PM FRE $0.81 Freddie Mac
Mad Money
11 days ago (05/27)
“…Does it? Well, let's think. Gm is just the late toast join the ranks of stocks that should not be trading, a member of the living dead like aig, fannie mae, FREDDIE MAC. These are all zombie common stocks that just hang around because no one in this country has the guts to cancel them. I think they aren't cancelled because by continuing to allow …” …more details…
1:00:19 PM FRE $0.78 Freddie Mac
16 days ago (05/22)
“…>>> the white house says president obama isn't concerned about a possible change in the aaa rating. The dollar is at a year low on a concern about a possible cut. >>> FREDDIE MAC is reportedly about to unveil its first bond. Reuters reports the sales zpoegt be about $1 billion. And stocks are higher ahead of the three-day holiday weekend. …” …more details…
11:40:43 AM FRE $0.78 Freddie Mac
16 days ago (05/22)
“…That blackrock is involved in, whether it's overseeing assets for the government and taxpayers like some of the aig assets, valuing securities at some institutions like FREDDIE MAC, and then managing money for clients and valuing assets for chients I want you to address that and get it out there. >> simple, I have no conflict. …” …more details…
6:53:33 PM FRE $0.79 Freddie Mac
17 days ago (05/21)
“…No amount of money on earth that is worth it, neil. Who in their right mind would run a company that is government? Think about what happened to that poor cfo at FREDDIE MAC. Neil: adam -- >> these people -- >> tell you right now who neil: go ahead, adam. >> tell you right now. This is something where president obama can stand up publicly say we need people …” …more details…
4:43:44 PM FRE $0.78 Freddie Mac
17 days ago (05/21)
“…A >>> welcome back. Taking a look at today's business headlines. Mortgage rates continue to hover near record lows. FREDDIE MAC says the average rate on a 30 year fixed mortgage fell to 4.82%. Rates remained below 5% for 10 consecutive weeks. …” …more details…
2:41:12 PM FRE $0.78 Freddie Mac
17 days ago (05/21)
“…>> david: gentlemen, great >> liz: we have to talk about mortgage rates as well. For most of the country, headed back down. FREDDIE MAC with the weekly national average for 30-year fixed dipped slightly from last week. Southwest region the only area coming in higher. …” …more details…
1:15:43 PM FRE $0.81 Freddie Mac
18 days ago (05/20)
“…We had it all over again? >> if you let me finish, we corrected everything in the housing market until wall street terms of sub prime mortgage backed securities. Until the congress got fannie mae and FREDDIE MAC to buy certain portion as, quote, unquote, affordable loans. That was a mistake that read to a reventure or a revisiting of shoddy underwriting and easy >> but there we were again, …” …more details…
12:06:00 PM FRE $0.83 Freddie Mac
19 days ago (05/19)
“…Everywhere else. As they make more room for that supplier to move to riskyier arenas, rates are moving up. Supply outside is sovereign. But interesting things today. FREDDIE MAC. We own a chunk of FREDDIE MAC. They auction six-year, three-year notes. The yield was 46, 47 over three years in the treasury. But last time they came to the market, it was more like 85 so, you know, having the …” …more details…
8:16:41 AM FRE $0.82 Freddie Mac
Squawk Box
23 days ago (05/15)
“…We pushed this legislation. We won't give it up. There hasn't been an iota -- you recall the chairman saying, there's inform danger at all in fannie mae and FREDDIE MAC. There's no issues in b of a. No problem. He hasn't apologized for saying when does the government ever step in and join everybody else stating an apology. …” …more details…
3:17:17 PM FRE $0.82 Freddie Mac
24 days ago (05/14)
“…Let's take a look at the day's business headlines. According to FREDDIE MAC, the average interest rate on 30 year fix mortgages climbed to 4.68% last year at this time, rates if hofshing around 6%. >>> former stanford financial …” …more details…
View All Freddie Mac News

Key Fundamentals

FRE - Freddie Mac Fundamentals
Price (6/5 4:00PM) $0.76
Volume (6/5 4:00PM) 4.7 Million
Last Close Price $0.76
10 Day Average Volume 5.2 Million
13 Week Price Range $0.35 - $1.50
52 Week Price Range $0.25 - $16.59
LTM Revenue $45.5 Billion
 
Shares Outstanding (12/2008) 648.2 Million
Market Capitalization $492.6 Million
Shares Held By Institutions 163.8 Million
Institutional Holders 293
% Shares Held By Institutions 25.30%
Earnings Per Share (EPS) ($34.60)
P/E Ratio n/a
Book Value Per Share
 
Gross Margin n/a%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 2.51
Fiscal Year Ends December
NASDAQ 1849.42

-0.6  -0.03%
S&P; 500 940.09

-2.37  -0.25%
^DIA 87.91

0.4  0.46%