GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Federal Home Loan Mortgage Corp (OTCPK:FREJO.PFD) » Definitions » ROE %

FREJO.PFD (Federal Home Loan Mortgage) ROE % : 22.66% (As of Sep. 2024)


View and export this data going back to . Start your Free Trial

What is Federal Home Loan Mortgage ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Federal Home Loan Mortgage's annualized net income for the quarter that ended in Sep. 2024 was $12,420.00 Mil. Federal Home Loan Mortgage's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $54,806.50 Mil. Therefore, Federal Home Loan Mortgage's annualized ROE % for the quarter that ended in Sep. 2024 was 22.66%.

The historical rank and industry rank for Federal Home Loan Mortgage's ROE % or its related term are showing as below:

FREJO.PFD' s ROE % Range Over the Past 10 Years
Min: 22.88   Med: 102.71   Max: 443.46
Current: 22.88

During the past 13 years, Federal Home Loan Mortgage's highest ROE % was 443.46%. The lowest was 22.88%. And the median was 102.71%.

FREJO.PFD's ROE % is ranked better than
93.03% of 1536 companies
in the Banks industry
Industry Median: 9.395 vs FREJO.PFD: 22.88

Federal Home Loan Mortgage ROE % Historical Data

The historical data trend for Federal Home Loan Mortgage's ROE % can be seen below:

* 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.

* Premium members only.

Federal Home Loan Mortgage ROE % Chart

Federal Home Loan Mortgage Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 106.10 57.38 54.49 28.68 24.87

Federal Home Loan Mortgage Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.80 25.23 22.54 21.33 22.66

Competitive Comparison of Federal Home Loan Mortgage's ROE %

For the Mortgage Finance subindustry, Federal Home Loan Mortgage's ROE %, along with its competitors' market caps and ROE % 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's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Federal Home Loan Mortgage's ROE % distribution charts can be found below:

* The bar in red indicates where Federal Home Loan Mortgage's ROE % falls into.



Federal Home Loan Mortgage ROE % Calculation

Federal Home Loan Mortgage's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=10538/( (37018+47722)/ 2 )
=10538/42370
=24.87 %

Federal Home Loan Mortgage's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=12420/( (53223+56390)/ 2 )
=12420/54806.5
=22.66 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Federal Home Loan Mortgage  (OTCPK:FREJO.PFD) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=12420/54806.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(12420 / 23352)*(23352 / 3324917.5)*(3324917.5 / 54806.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=53.19 %*0.007*60.6665
=ROA %*Equity Multiplier
=0.37 %*60.6665
=22.66 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=12420/54806.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (12420 / 15384) * (15384 / 23352) * (23352 / 3324917.5) * (3324917.5 / 54806.5)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.8073 * 65.88 % * 0.007 * 60.6665
=22.66 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Federal Home Loan Mortgage ROE % Related Terms

Thank you for viewing the detailed overview of Federal Home Loan Mortgage's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Federal Home Loan Mortgage Business Description

Address
8200 Jones Branch Drive, McLean, VA, USA, 22102-3110
Federal Home Loan Mortgage Corp is a US based government-sponsored enterprise. The company invests in mortgage loans and mortgage-related securities. It operates in the following segments: Single-family, Multifamily. Its Single-family segment 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. The company purchases multifamily loans for aggregation and then securitization through the issuance of multifamily K Certificates as well as issues and guarantees other securitization products. Majority of the revenue is earned from single family segment.