PENNYMAC FINANCIAL SERVICES (PFSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PFSI - US70932M1071 - Common Stock
146.47 USD
+0.11 (+0.08%)
PFSI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 98 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
PFSI had positive earnings in the past year.
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.
1.2 Ratios
With a Return On Assets value of 1.96%, PFSI perfoms like the industry average, outperforming 59.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.85%, PFSI is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
The Return On Invested Capital of PFSI (1.83%) is comparable to the rest of the industry.
PFSI had an Average Return On Invested Capital over the past 3 years of 2.11%. This 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
Looking at the Profit Margin, with a value of 17.17%, PFSI is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
PFSI's Profit Margin has declined in the last couple of years.
The Operating Margin of PFSI (19.02%) is better than 66.33% of its industry peers.
PFSI's Operating Margin has declined in the last couple of years.
PFSI has a better Gross Margin (68.13%) than 78.57% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PFSI is destroying value.
The number of shares outstanding for PFSI has been increased compared to 1 year ago.
The number of shares outstanding for PFSI has been reduced compared to 5 years ago.
The debt/assets ratio for PFSI is higher compared to a year ago.
2.2 Solvency
PFSI has an Altman-Z score of 0.21. This is a bad value and indicates that PFSI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.21, PFSI is in line with its industry, outperforming 45.92% of the companies in the same industry.
A Debt/Equity ratio of 3.32 is on the high side and indicates that PFSI has dependencies on debt financing.
PFSI's Debt to Equity ratio of 3.32 is on the low side compared to the rest of the industry. PFSI is outperformed by 77.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.21 |
ROIC/WACC0.21
WACC8.52%
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.
Looking at the Current ratio, with a value of 0.07, PFSI is doing worse than 78.57% of the companies in the same industry.
A Quick Ratio of 0.07 indicates that PFSI may have some problems paying its short term obligations.
PFSI has a worse Quick ratio (0.07) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.78% over the past year.
The Earnings Per Share has been growing by 9.16% on average over the past years. This is quite good.
The Revenue has grown by 29.24% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 7.39% on average over the past years.
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 29.41% on average per year.
The Revenue is expected to grow by 22.89% on average over the next years. This is a very strong growth
EPS Next Y43.15%
EPS Next 2Y43.32%
EPS Next 3Y33.87%
EPS Next 5Y29.41%
Revenue Next Year28.4%
Revenue Next 2Y28.65%
Revenue Next 3Y22.2%
Revenue Next 5Y22.89%
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 15.78, PFSI is valued correctly.
PFSI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PFSI to the average of the S&P500 Index (27.25), we can say PFSI is valued slightly cheaper.
A Price/Forward Earnings ratio of 9.41 indicates a reasonable valuation of PFSI.
61.22% of the companies in the same industry are more expensive than PFSI, based on the Price/Forward Earnings ratio.
PFSI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 9.41 |
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 | 21.99 |
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.
PFSI's earnings are expected to grow with 33.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)1.72
EPS Next 2Y43.32%
EPS Next 3Y33.87%
5. Dividend
5.1 Amount
PFSI has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 2.49, PFSI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, PFSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
The dividend of PFSI is nicely growing with an annual growth rate of 52.53%!
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
12.49% of the earnings are spent on dividend by PFSI. This is a low number and 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 2Y43.32%
EPS Next 3Y33.87%
NYSE:PFSI (1/13/2026, 10:22:38 AM)
146.47
+0.11 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners63.76%
Inst Owner Change0.01%
Ins Owners4.63%
Ins Owner Change-0.22%
Market Cap7.61B
Revenue(TTM)2.90B
Net Income(TTM)498.74M
Analysts80
Price Target148.03 (1.07%)
Short Float %4.08%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend1.03
Dividend Growth(5Y)52.53%
DP12.49%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
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)4.73%
PT rev (3m)18.68%
EPS NQ rev (1m)6.41%
EPS NQ rev (3m)9.24%
EPS NY rev (1m)2.31%
EPS NY rev (3m)6.1%
Revenue NQ rev (1m)2.13%
Revenue NQ rev (3m)7.89%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 9.41 | ||
| P/S | 2.62 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.99 |
EPS(TTM)9.28
EY6.34%
EPS(NY)15.57
Fwd EY10.63%
FCF(TTM)-37.47
FCFYN/A
OCF(TTM)-36.78
OCFYN/A
SpS55.88
BVpS80.97
TBVpS-106.81
PEG (NY)0.37
PEG (5Y)1.72
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 | 0.21 |
F-Score5
WACC8.52%
ROIC/WACC0.21
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 Y43.15%
EPS Next 2Y43.32%
EPS Next 3Y33.87%
EPS Next 5Y29.41%
Revenue 1Y (TTM)29.24%
Revenue growth 3Y-12.14%
Revenue growth 5Y7.39%
Sales Q2Q%53.68%
Revenue Next Year28.4%
Revenue Next 2Y28.65%
Revenue Next 3Y22.2%
Revenue Next 5Y22.89%
EBIT growth 1Y44.72%
EBIT growth 3Y-33.34%
EBIT growth 5Y-5.32%
EBIT Next Year92.56%
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.
Can you provide the valuation status for PENNYMAC FINANCIAL SERVICES?
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.
Can you provide the PE and PB ratios for PFSI stock?
The Price/Earnings (PE) ratio for PENNYMAC FINANCIAL SERVICES (PFSI) is 15.78 and the Price/Book (PB) ratio is 1.81.
How sustainable is the dividend of PENNYMAC FINANCIAL SERVICES (PFSI) stock?
The dividend rating of PENNYMAC FINANCIAL SERVICES (PFSI) is 3 / 10 and the dividend payout ratio is 12.49%.