PENNYMAC FINANCIAL SERVICES (PFSI) Fundamental Analysis & Valuation

NYSE:PFSI • US70932M1071

Current stock price

84.45 USD
-3.58 (-4.07%)
At close:
84.45 USD
0 (0%)
After Hours:

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

  • PFSI had positive earnings in the past year.
  • In the past year PFSI has reported a negative cash flow from operations.
  • PFSI had positive earnings in each of the past 5 years.
  • 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

  • With a Return On Assets value of 1.70%, PFSI perfoms like the industry average, outperforming 54.08% of the companies in the same industry.
  • The Return On Equity of PFSI (11.63%) is better than 62.24% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.71%, PFSI is in line with its industry, outperforming 45.92% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for PFSI is significantly below the industry average of 8.22%.
  • 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 Profit Margin of 16.66%. This is in the better half of the industry: PFSI outperforms 66.33% of its industry peers.
  • PFSI's Profit Margin has declined in the last couple of years.
  • PFSI's Operating Margin of 18.49% is fine compared to the rest 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 Gross Margin of 68.06%. This is in the better half of the industry: PFSI outperforms 78.57% of its industry peers.
  • PFSI's Gross Margin has declined in the last couple of years.
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

  • 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 has been reduced compared to a year ago.
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

  • Based on the Altman-Z score of 0.02, we must say that PFSI is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of PFSI (0.02) is worse than 61.22% 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's Debt to Equity ratio of 3.63 is on the low side compared to the rest of the industry. PFSI is outperformed by 76.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.63
Debt/FCF N/A
Altman-Z 0.02
ROIC/WACC0.22
WACC7.77%
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.
  • PFSI's Current ratio of 0.03 is on the low side compared to the rest of the industry. PFSI is outperformed by 80.61% of its industry peers.
  • A Quick Ratio of 0.03 indicates that PFSI may have some problems paying its short term obligations.
  • The Quick ratio of PFSI (0.03) is worse than 80.61% of its industry peers.
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.
  • The Revenue has grown by 24.62% in the past year. This is a very strong growth!
  • 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

  • PFSI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.27% yearly.
  • The Revenue is expected to grow by 14.37% on average over the next years. This is quite good.
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

  • 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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • The Price/Earnings ratio is 9.08, which indicates a very decent valuation of PFSI.
  • PFSI's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, PFSI is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 6.51, the valuation of PFSI can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, PFSI is valued a bit cheaper than 76.53% of the companies in the same industry.
  • PFSI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.08
Fwd PE 6.51
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

  • PFSI's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.12
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

  • With a Yearly Dividend Yield of 1.36%, PFSI has a reasonable but not impressive dividend return.
  • In the last 3 months the price of PFSI has falen by -37.27%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 2.47, PFSI has a dividend in line with its industry peers.
  • PFSI's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.36%

5.2 History

  • The dividend of PFSI is nicely growing with an annual growth rate of 24.03%!
  • 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.
  • The dividend of PFSI is growing, but the earnings are growing slower. 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 (3/20/2026, 8:16:43 PM)

After market: 84.45 0 (0%)

84.45

-3.58 (-4.07%)

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 Cap4.41B
Revenue(TTM)3.01B
Net Income(TTM)501.08M
Analysts80
Price Target135.66 (60.64%)
Short Float %5.96%
Short Ratio2.15
Dividend
Industry RankSector Rank
Dividend Yield 1.36%
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 9.08
Fwd PE 6.51
P/S 1.47
P/FCF N/A
P/OCF N/A
P/B 1.02
P/tB N/A
EV/EBITDA 17.12
EPS(TTM)9.3
EY11.01%
EPS(NY)12.98
Fwd EY15.37%
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
WACC7.77%
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 9.08 and the Price/Book (PB) ratio is 1.02.


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%.