Federal Home Loan MortgageFMCC +1.87%48 ROA % is 0.41% as of Mar. 2026, which is 24% above its 10-year median of 0.33. GuruFocus rates FMCC with a GF Score™ of 48/100 and a GF Value™ of $2.52 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,528 Banks companies, Federal Home Loan Mortgage ranks worse than 85.6% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Federal Home Loan Mortgage's annualizedNet Income for the quarter that ended in Mar. 2026 was $14,232 Mil.
Federal Home Loan Mortgage's average Total Assets over the quarter that ended in Mar. 2026 was $3,501,458 Mil. Therefore, Federal Home Loan Mortgage's annualized ROA % for the quarter that ended in Mar. 2026 was 0.41%.
The historical rank and industry rank for Federal Home Loan Mortgage's ROA % or its related term are showing as below:
FMCC'
s ROA % Range Over the Past 10 Years
Min: 0.28 Med: 0.33 Max: 0.45
Current: 0.33
During the past 13 years, Federal Home Loan Mortgage's highest ROA % was 0.45%. The lowest was 0.28%. And the median was 0.33%.
FMCC's ROA % is ranked worse than 85.6% of 1528
companies
in the Banks industry
Industry Median: 0.98
vs FMCC: 0.33
Federal Home Loan Mortgage (OTCPK:FMCC) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Mortgage Finance subindustry, Federal Home Loan Mortgage's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Federal Home Loan Mortgage ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Federal Home Loan Mortgage's ROA % distribution charts can be found below:
* The bar in red indicates where Federal Home Loan Mortgage's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Federal Home Loan Mortgage (FMCC) has a ROA % of 0.41% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Federal Home Loan Mortgage and its competitors. This is 24% above median its historical median of 0.33. Over the past decade, Federal Home Loan Mortgage's ROA % has ranged from 0.28 to 0.45. According to the industry distribution chart, Federal Home Loan Mortgage ranks #1308 out of 1528 companies in the Banks industry, placing it in the top 85.6%.
Is Federal Home Loan Mortgage's ROA % too high?
Federal Home Loan Mortgage's current ROA % of 0.41% is 24% above median its 10-year median of 0.33. Over the past 10 years, this metric has ranged from a low of 0.28 to a high of 0.45. The Banks industry median ROA % is 0.98. Federal Home Loan Mortgage's value of 0.41% is 58.2% below this industry median. Based on the distribution chart, Federal Home Loan Mortgage ranks #1308 out of 1528 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Federal Home Loan Mortgage has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federal Home Loan Mortgage's ROA % compare to PFSI and WD?
According to the Banks industry distribution chart, Federal Home Loan Mortgage ranks #1308 out of 1528 companies for ROA %. This places Federal Home Loan Mortgage in the lower half of its industry. The industry median ROA % is 0.98. Federal Home Loan Mortgage's value of 0.41% is 58.2% below this benchmark. Historically, Federal Home Loan Mortgage's own ROA % has ranged from 0.28 to 0.45 over the past decade. While the company's 10-year median is 0.33 vs. the industry median of 0.98, Federal Home Loan Mortgage has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Banks company?
The median ROA % among Banks companies is 0.98, based on 1,528 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federal Home Loan Mortgage's current ROA % of 0.41% is 58.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Federal Home Loan Mortgage and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federal Home Loan Mortgage's current ROA % is 0.41%, which is 24% above median its own 10-year median of 0.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federal Home Loan Mortgage stock overvalued right now?
Based on GuruFocus' analysis, Federal Home Loan Mortgage (FMCC) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.52, compared to a current price of $6.54 — trading 159.5% above its estimated fair value. The current ROA % is 0.41%, which is 24% above median its 10-year median of 0.33 and 58.2% below the Banks industry median of 0.98. Federal Home Loan Mortgage's overall GF Score™ is 48/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Federal Home Loan Mortgage (FMCC), the current ROA % is 0.41% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Federal Home Loan Mortgage (FMCC) Overvalued in 2026?
Based on GuruFocus' analysis, Federal Home Loan Mortgage stock appears to be overvalued.
The current stock price of $6.54 is trading 159.5% above its estimated GF Value™ of $2.52.
GuruFocus considers Federal Home Loan Mortgage to be Significantly Overvalued.
Key valuation signals for FMCC:
ROA %: 0.41% (24% above median its 10-year median of 0.33)
GF Value™: $2.52 vs. price of $6.54 (159.5% above fair value)
Industry Position: 58.2% below the Banks median (#1308 of 1528)
No single metric tells the full story. See the FMCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Federal Home Loan Mortgage Corp is a U.S. based government-sponsored enterprise. The company invests in mortgage loans and mortgage-related securities. Its two reportable segments are: i) Single-Family: It provides liquidity and support to the single-family mortgage market through a variety of activities that include the purchase, securitization, and guarantee of single-family loans originated by lenders, and ii) Multifamily: It provides liquidity and support to the multifamily mortgage market through a variety of activities that include the purchase, securitization, and guarantee of multifamily loans. The majority of the company's revenue is derived from the Single-Family segment.
48GF Score
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