PENNYMAC FINANCIAL SERVICES (PFSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PFSI - US70932M1071 - Common Stock
134.71 USD
+0.09 (+0.07%)
134.71 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PFSI. PFSI was compared to 99 industry peers in the Financial Services industry. PFSI has a medium profitability rating, but doesn't score so well on its financial health evaluation. PFSI is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year PFSI was profitable.
PFSI had a negative operating cash flow in the past year.
In the past 5 years PFSI has always been profitable.
In multiple years PFSI reported negative operating cash flow during the last 5 years.
1.2 Ratios
PFSI has a Return On Assets (1.96%) which is in line with its industry peers.
The Return On Equity of PFSI (11.85%) is better than 65.66% of its industry peers.
PFSI has a Return On Invested Capital (1.83%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PFSI is significantly below the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 11.85% | ||
| ROIC | 1.83% |
ROA(3y)1.6%
ROA(5y)3.07%
ROE(3y)8.64%
ROE(5y)20.77%
ROIC(3y)2.11%
ROIC(5y)3.65%
1.3 Margins
With a decent Profit Margin value of 17.17%, PFSI is doing good in the industry, outperforming 65.66% of the companies in the same industry.
PFSI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.02%, PFSI is in the better half of the industry, outperforming 67.68% of the companies in the same industry.
PFSI's Operating Margin has declined in the last couple of years.
PFSI's Gross Margin of 68.13% is fine compared to the rest of the industry. PFSI outperforms 79.80% of its industry peers.
PFSI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.02% | ||
| PM (TTM) | 17.17% | ||
| GM | 68.13% |
OM growth 3Y-24.13%
OM growth 5Y-11.84%
PM growth 3Y-22.94%
PM growth 5Y-11.12%
GM growth 3Y-9.47%
GM growth 5Y-5.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PFSI is destroying value.
PFSI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PFSI has less shares outstanding
The debt/assets ratio for PFSI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.19, we must say that PFSI is in the distress zone and has some risk of bankruptcy.
PFSI has a Altman-Z score of 0.19. This is comparable to the rest of the industry: PFSI outperforms 45.45% of its industry peers.
A Debt/Equity ratio of 3.32 is on the high side and indicates that PFSI has dependencies on debt financing.
PFSI has a Debt to Equity ratio of 3.32. This is in the lower half of the industry: PFSI underperforms 76.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.19 |
ROIC/WACC0.27
WACC6.7%
2.3 Liquidity
PFSI has a Current Ratio of 0.07. This is a bad value and indicates that PFSI is not financially healthy enough and could expect problems in meeting its short term obligations.
PFSI has a worse Current ratio (0.07) than 79.80% of its industry peers.
PFSI has a Quick Ratio of 0.07. This is a bad value and indicates that PFSI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.07, PFSI is not doing good in the industry: 79.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
PFSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.78%, which is quite impressive.
The Earnings Per Share has been growing by 9.16% on average over the past years. This is quite good.
Looking at the last year, PFSI shows a very strong growth in Revenue. The Revenue has grown by 29.24%.
PFSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.39% yearly.
EPS 1Y (TTM)89.78%
EPS 3Y-19.77%
EPS 5Y9.16%
EPS Q2Q%159.23%
Revenue 1Y (TTM)29.24%
Revenue growth 3Y-12.14%
Revenue growth 5Y7.39%
Sales Q2Q%53.68%
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 33.37% on average per year.
Based on estimates for the next years, PFSI will show a very strong growth in Revenue. The Revenue will grow by 21.91% on average per year.
EPS Next Y39.92%
EPS Next 2Y43.01%
EPS Next 3Y33.37%
EPS Next 5YN/A
Revenue Next Year27.57%
Revenue Next 2Y28.54%
Revenue Next 3Y21.91%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.52, PFSI is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as PFSI.
When comparing the Price/Earnings ratio of PFSI to the average of the S&P500 Index (26.61), we can say PFSI is valued slightly cheaper.
With a Price/Forward Earnings ratio of 8.69, the valuation of PFSI can be described as very reasonable.
63.64% of the companies in the same industry are more expensive than PFSI, based on the Price/Forward Earnings ratio.
PFSI is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
PFSI's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.97 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PFSI's earnings are expected to grow with 33.37% in the coming years.
PEG (NY)0.36
PEG (5Y)1.58
EPS Next 2Y43.01%
EPS Next 3Y33.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, PFSI is not a good candidate for dividend investing.
PFSI's Dividend Yield is comparable with the industry average which is at 2.43.
Compared to an average S&P500 Dividend Yield of 1.87, PFSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
On average, the dividend of PFSI grows each year by 52.53%, which is quite nice.
PFSI has been paying a dividend for over 5 years, so it has already some track record.
PFSI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)52.53%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
PFSI pays out 12.49% of its income as dividend. This is a sustainable payout ratio.
The dividend of PFSI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.49%
EPS Next 2Y43.01%
EPS Next 3Y33.37%
134.71
+0.09 (+0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners63.76%
Inst Owner Change5.41%
Ins Owners4.64%
Ins Owner Change-0.21%
Market Cap7.00B
Revenue(TTM)2.90B
Net Income(TTM)498.74M
Analysts78.57
Price Target141.34 (4.92%)
Short Float %4.54%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend1.03
Dividend Growth(5Y)52.53%
DP12.49%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.46%
Min EPS beat(2)-12.94%
Max EPS beat(2)13.86%
EPS beat(4)1
Avg EPS beat(4)-21.8%
Min EPS beat(4)-49.34%
Max EPS beat(4)13.86%
EPS beat(8)2
Avg EPS beat(8)-39.52%
EPS beat(12)3
Avg EPS beat(12)-35.2%
EPS beat(16)6
Avg EPS beat(16)-13.25%
Revenue beat(2)1
Avg Revenue beat(2)-7.71%
Min Revenue beat(2)-21.27%
Max Revenue beat(2)5.84%
Revenue beat(4)1
Avg Revenue beat(4)-12.04%
Min Revenue beat(4)-21.27%
Max Revenue beat(4)5.84%
Revenue beat(8)1
Avg Revenue beat(8)-16.04%
Revenue beat(12)2
Avg Revenue beat(12)-11.42%
Revenue beat(16)6
Avg Revenue beat(16)-4.33%
PT rev (1m)0%
PT rev (3m)13.32%
EPS NQ rev (1m)7.19%
EPS NQ rev (3m)10.04%
EPS NY rev (1m)-2.34%
EPS NY rev (3m)10.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.33%
Revenue NY rev (1m)-2.33%
Revenue NY rev (3m)-1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 8.69 | ||
| P/S | 2.41 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.97 |
EPS(TTM)9.28
EY6.89%
EPS(NY)15.5
Fwd EY11.51%
FCF(TTM)-37.47
FCFYN/A
OCF(TTM)-36.78
OCFYN/A
SpS55.88
BVpS80.97
TBVpS-106.81
PEG (NY)0.36
PEG (5Y)1.58
Graham Number130.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 11.85% | ||
| ROCE | 3.49% | ||
| ROIC | 1.83% | ||
| ROICexc | 1.87% | ||
| ROICexgc | 6.41% | ||
| OM | 19.02% | ||
| PM (TTM) | 17.17% | ||
| GM | 68.13% | ||
| FCFM | N/A |
ROA(3y)1.6%
ROA(5y)3.07%
ROE(3y)8.64%
ROE(5y)20.77%
ROIC(3y)2.11%
ROIC(5y)3.65%
ROICexc(3y)2.25%
ROICexc(5y)3.78%
ROICexgc(3y)12.97%
ROICexgc(5y)13.6%
ROCE(3y)3.67%
ROCE(5y)7.27%
ROICexgc growth 3Y-29.91%
ROICexgc growth 5Y-15.06%
ROICexc growth 3Y-40.19%
ROICexc growth 5Y-21.68%
OM growth 3Y-24.13%
OM growth 5Y-11.84%
PM growth 3Y-22.94%
PM growth 5Y-11.12%
GM growth 3Y-9.47%
GM growth 5Y-5.46%
F-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 23.4 | ||
| Cap/Depr | 79.44% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 0.6 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | 0.19 |
F-Score5
WACC6.7%
ROIC/WACC0.27
Cap/Depr(3y)116.34%
Cap/Depr(5y)175.37%
Cap/Sales(3y)2.09%
Cap/Sales(5y)2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)89.78%
EPS 3Y-19.77%
EPS 5Y9.16%
EPS Q2Q%159.23%
EPS Next Y39.92%
EPS Next 2Y43.01%
EPS Next 3Y33.37%
EPS Next 5YN/A
Revenue 1Y (TTM)29.24%
Revenue growth 3Y-12.14%
Revenue growth 5Y7.39%
Sales Q2Q%53.68%
Revenue Next Year27.57%
Revenue Next 2Y28.54%
Revenue Next 3Y21.91%
Revenue Next 5YN/A
EBIT growth 1Y44.72%
EBIT growth 3Y-33.34%
EBIT growth 5Y-5.32%
EBIT Next Year140.89%
EBIT Next 3Y43.77%
EBIT Next 5YN/A
FCF growth 1Y-24.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-25.5%
OCF growth 3YN/A
OCF growth 5YN/A
PENNYMAC FINANCIAL SERVICES / PFSI FAQ
Can you provide the ChartMill fundamental rating for PENNYMAC FINANCIAL SERVICES?
ChartMill assigns a fundamental rating of 4 / 10 to PFSI.
What is the valuation status of PENNYMAC FINANCIAL SERVICES (PFSI) stock?
ChartMill assigns a valuation rating of 5 / 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.
What are the PE and PB ratios of PENNYMAC FINANCIAL SERVICES (PFSI) stock?
The Price/Earnings (PE) ratio for PENNYMAC FINANCIAL SERVICES (PFSI) is 14.52 and the Price/Book (PB) ratio is 1.66.
How financially healthy is PENNYMAC FINANCIAL SERVICES?
The financial health rating of PENNYMAC FINANCIAL SERVICES (PFSI) is 1 / 10.