PENNYMAC FINANCIAL SERVICES (PFSI) Fundamental Analysis & Valuation

NYSE:PFSI • US70932M1071

Current stock price

85.68 USD
+1.54 (+1.83%)
Last:

This PFSI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. PFSI Profitability Analysis

1.1 Basic Checks

  • In the past year PFSI was profitable.
  • In the past year PFSI has reported a negative cash flow from operations.
  • In the past 5 years PFSI has always been profitable.
  • In multiple years PFSI reported negative operating cash flow during the last 5 years.
PFSI Yearly Net Income VS EBIT VS OCF VS FCFPFSI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B 6B -6B

1.2 Ratios

  • The Return On Assets of PFSI (1.70%) is comparable to the rest of the industry.
  • The Return On Equity of PFSI (11.63%) is better than 62.24% of its industry peers.
  • PFSI has a Return On Invested Capital (1.71%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for PFSI is significantly below the industry average of 8.26%.
  • The last Return On Invested Capital (1.71%) for PFSI is above the 3 year average (1.61%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.7%
ROE 11.63%
ROIC 1.71%
ROA(3y)1.22%
ROA(5y)2.37%
ROE(3y)7.95%
ROE(5y)13.38%
ROIC(3y)1.61%
ROIC(5y)3.02%
PFSI Yearly ROA, ROE, ROICPFSI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • PFSI has a better Profit Margin (16.66%) than 66.33% of its industry peers.
  • PFSI's Profit Margin has declined in the last couple of years.
  • PFSI has a Operating Margin of 18.49%. This is in the better half of the industry: PFSI outperforms 65.31% of its industry peers.
  • PFSI's Operating Margin has declined in the last couple of years.
  • PFSI has a better Gross Margin (68.06%) than 78.57% of its industry peers.
  • In the last couple of years the Gross Margin of PFSI has declined.
Industry RankSector Rank
OM 18.49%
PM (TTM) 16.66%
GM 68.06%
OM growth 3Y-13.59%
OM growth 5Y-20.07%
PM growth 3Y-6.65%
PM growth 5Y-16.64%
GM growth 3Y-7.34%
GM growth 5Y-6.09%
PFSI Yearly Profit, Operating, Gross MarginsPFSI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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1

2. PFSI Health Analysis

2.1 Basic Checks

  • PFSI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, PFSI has more shares outstanding
  • Compared to 5 years ago, PFSI has less shares outstanding
  • Compared to 1 year ago, PFSI has an improved debt to assets ratio.
PFSI Yearly Shares OutstandingPFSI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
PFSI Yearly Total Debt VS Total AssetsPFSI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • PFSI has an Altman-Z score of 0.02. This is a bad value and indicates that PFSI is not financially healthy and even has some risk of bankruptcy.
  • PFSI's Altman-Z score of 0.02 is on the low side compared to the rest of the industry. PFSI is outperformed by 62.24% of its industry peers.
  • PFSI has a Debt/Equity ratio of 3.63. This is a high value indicating a heavy dependency on external financing.
  • PFSI has a worse Debt to Equity ratio (3.63) than 76.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.63
Debt/FCF N/A
Altman-Z 0.02
ROIC/WACC0.22
WACC7.74%
PFSI Yearly LT Debt VS Equity VS FCFPFSI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B 6B -6B

2.3 Liquidity

  • A Current Ratio of 0.03 indicates that PFSI may have some problems paying its short term obligations.
  • The Current ratio of PFSI (0.03) is worse than 81.63% of its industry peers.
  • A Quick Ratio of 0.03 indicates that PFSI may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.03, PFSI is doing worse than 81.63% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.03
Quick Ratio 0.03
PFSI Yearly Current Assets VS Current LiabilitesPFSI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. PFSI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 22.69% over the past year.
  • PFSI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.13% yearly.
  • Looking at the last year, PFSI shows a very strong growth in Revenue. The Revenue has grown by 24.62%.
  • Measured over the past years, PFSI shows a decrease in Revenue. The Revenue has been decreasing by -5.44% on average per year.
EPS 1Y (TTM)22.69%
EPS 3Y3.49%
EPS 5Y-15.13%
EPS Q2Q%1.03%
Revenue 1Y (TTM)24.62%
Revenue growth 3Y9.01%
Revenue growth 5Y-5.44%
Sales Q2Q%14.44%

3.2 Future

  • Based on estimates for the next years, PFSI will show a very strong growth in Earnings Per Share. The EPS will grow by 23.27% on average per year.
  • Based on estimates for the next years, PFSI will show a quite strong growth in Revenue. The Revenue will grow by 14.37% on average per year.
EPS Next Y39.53%
EPS Next 2Y32.4%
EPS Next 3Y23.27%
EPS Next 5YN/A
Revenue Next Year17.17%
Revenue Next 2Y16.26%
Revenue Next 3Y14.37%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
PFSI Yearly Revenue VS EstimatesPFSI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
PFSI Yearly EPS VS EstimatesPFSI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15 20

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6

4. PFSI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.21 indicates a reasonable valuation of PFSI.
  • PFSI's Price/Earnings ratio is a bit cheaper when compared to the industry. PFSI is cheaper than 61.22% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.71, PFSI is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 6.60, the valuation of PFSI can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, PFSI is valued cheaply inside the industry as 82.65% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 23.83. PFSI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.21
Fwd PE 6.6
PFSI Price Earnings VS Forward Price EarningsPFSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PFSI is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.79
PFSI Per share dataPFSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 -100

4.3 Compensation for Growth

  • PFSI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • PFSI's earnings are expected to grow with 23.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y32.4%
EPS Next 3Y23.27%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. PFSI Dividend Analysis

5.1 Amount

  • PFSI has a Yearly Dividend Yield of 1.42%.
  • In the last 3 months the price of PFSI has falen by -35.52%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • PFSI's Dividend Yield is comparable with the industry average which is at 2.61.
  • PFSI's Dividend Yield is slightly below the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.42%

5.2 History

  • On average, the dividend of PFSI grows each year by 24.03%, which is quite nice.
  • PFSI has been paying a dividend for over 5 years, so it has already some track record.
  • The dividend of PFSI decreased in the last 3 years.
Dividend Growth(5Y)24.03%
Div Incr Years1
Div Non Decr Years2
PFSI Yearly Dividends per sharePFSI Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • PFSI pays out 12.48% of its income as dividend. This is a sustainable payout ratio.
  • PFSI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP12.48%
EPS Next 2Y32.4%
EPS Next 3Y23.27%
PFSI Yearly Income VS Free CF VS DividendPFSI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B -6B
PFSI Dividend Payout.PFSI Dividend Payout, showing the Payout Ratio.PFSI Dividend Payout.PayoutRetained Earnings

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PFSI Fundamentals: All Metrics, Ratios and Statistics

PENNYMAC FINANCIAL SERVICES

NYSE:PFSI (3/16/2026, 2:02:49 PM)

85.68

+1.54 (+1.83%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)01-29
Earnings (Next)04-20
Inst Owners60.98%
Inst Owner Change-12.22%
Ins Owners4.7%
Ins Owner Change-0.03%
Market Cap4.47B
Revenue(TTM)3.01B
Net Income(TTM)501.08M
Analysts80
Price Target135.66 (58.33%)
Short Float %5.96%
Short Ratio2.15
Dividend
Industry RankSector Rank
Dividend Yield 1.42%
Yearly Dividend1.21
Dividend Growth(5Y)24.03%
DP12.48%
Div Incr Years1
Div Non Decr Years2
Ex-Date02-13
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-13.24%
Min EPS beat(2)-40.34%
Max EPS beat(2)13.86%
EPS beat(4)1
Avg EPS beat(4)-22.19%
Min EPS beat(4)-49.34%
Max EPS beat(4)13.86%
EPS beat(8)2
Avg EPS beat(8)-25.99%
EPS beat(12)3
Avg EPS beat(12)-35.69%
EPS beat(16)6
Avg EPS beat(16)-14.31%
Revenue beat(2)1
Avg Revenue beat(2)-6.03%
Min Revenue beat(2)-17.91%
Max Revenue beat(2)5.84%
Revenue beat(4)1
Avg Revenue beat(4)-13.58%
Min Revenue beat(4)-21.27%
Max Revenue beat(4)5.84%
Revenue beat(8)1
Avg Revenue beat(8)-16.56%
Revenue beat(12)1
Avg Revenue beat(12)-14.99%
Revenue beat(16)5
Avg Revenue beat(16)-5.48%
PT rev (1m)-3.1%
PT rev (3m)-4.02%
EPS NQ rev (1m)9.54%
EPS NQ rev (3m)-34.5%
EPS NY rev (1m)3.27%
EPS NY rev (3m)-16.29%
Revenue NQ rev (1m)1.94%
Revenue NQ rev (3m)-14.57%
Revenue NY rev (1m)-1.69%
Revenue NY rev (3m)-7.33%
Valuation
Industry RankSector Rank
PE 9.21
Fwd PE 6.6
P/S 1.49
P/FCF N/A
P/OCF N/A
P/B 1.04
P/tB N/A
EV/EBITDA 16.79
EPS(TTM)9.3
EY10.85%
EPS(NY)12.98
Fwd EY15.15%
FCF(TTM)-32.65
FCFYN/A
OCF(TTM)-31.67
OCFYN/A
SpS57.64
BVpS82.59
TBVpS-103.47
PEG (NY)0.23
PEG (5Y)N/A
Graham Number131.47
Profitability
Industry RankSector Rank
ROA 1.7%
ROE 11.63%
ROCE 3.1%
ROIC 1.71%
ROICexc 1.73%
ROICexgc 5.56%
OM 18.49%
PM (TTM) 16.66%
GM 68.06%
FCFM N/A
ROA(3y)1.22%
ROA(5y)2.37%
ROE(3y)7.95%
ROE(5y)13.38%
ROIC(3y)1.61%
ROIC(5y)3.02%
ROICexc(3y)1.66%
ROICexc(5y)3.15%
ROICexgc(3y)6.85%
ROICexgc(5y)12.19%
ROCE(3y)2.85%
ROCE(5y)5.66%
ROICexgc growth 3Y-40.88%
ROICexgc growth 5Y-20.81%
ROICexc growth 3Y-24.59%
ROICexc growth 5Y-22.94%
OM growth 3Y-13.59%
OM growth 5Y-20.07%
PM growth 3Y-6.65%
PM growth 5Y-16.64%
GM growth 3Y-7.34%
GM growth 5Y-6.09%
F-Score5
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 3.63
Debt/FCF N/A
Debt/EBITDA 25.64
Cap/Depr 94.14%
Cap/Sales 1.7%
Interest Coverage 0.58
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.03
Quick Ratio 0.03
Altman-Z 0.02
F-Score5
WACC7.74%
ROIC/WACC0.22
Cap/Depr(3y)67.19%
Cap/Depr(5y)128.42%
Cap/Sales(3y)1.46%
Cap/Sales(5y)1.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.69%
EPS 3Y3.49%
EPS 5Y-15.13%
EPS Q2Q%1.03%
EPS Next Y39.53%
EPS Next 2Y32.4%
EPS Next 3Y23.27%
EPS Next 5YN/A
Revenue 1Y (TTM)24.62%
Revenue growth 3Y9.01%
Revenue growth 5Y-5.44%
Sales Q2Q%14.44%
Revenue Next Year17.17%
Revenue Next 2Y16.26%
Revenue Next 3Y14.37%
Revenue Next 5YN/A
EBIT growth 1Y37.52%
EBIT growth 3Y-5.8%
EBIT growth 5Y-24.41%
EBIT Next Year40.7%
EBIT Next 3Y36.53%
EBIT Next 5YN/A
FCF growth 1Y62.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y63.56%
OCF growth 3YN/A
OCF growth 5YN/A

PENNYMAC FINANCIAL SERVICES / PFSI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for PENNYMAC FINANCIAL SERVICES?

ChartMill assigns a fundamental rating of 4 / 10 to PFSI.


Can you provide the valuation status for PENNYMAC FINANCIAL SERVICES?

ChartMill assigns a valuation rating of 6 / 10 to PENNYMAC FINANCIAL SERVICES (PFSI). This can be considered as Fairly Valued.


Can you provide the profitability details for PENNYMAC FINANCIAL SERVICES?

PENNYMAC FINANCIAL SERVICES (PFSI) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for PFSI stock?

The Price/Earnings (PE) ratio for PENNYMAC FINANCIAL SERVICES (PFSI) is 9.21 and the Price/Book (PB) ratio is 1.04.


How sustainable is the dividend of PENNYMAC FINANCIAL SERVICES (PFSI) stock?

The dividend rating of PENNYMAC FINANCIAL SERVICES (PFSI) is 4 / 10 and the dividend payout ratio is 12.48%.