PENNYMAC FINANCIAL SERVICES (PFSI) Stock Fundamental Analysis
USA - NYSE:PFSI - US70932M1071 - Common Stock
126 USD
+1.55 (+1.25%)
126 USD
0 (0%)
Taking everything into account, PFSI scores 4 out of 10 in our fundamental rating. PFSI was compared to 98 industry peers in the Financial Services industry. PFSI has a bad profitability rating. Also its financial health evaluation is rather negative. PFSI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
PFSI had positive earnings in the past year.
PFSI had a negative operating cash flow in the past year.
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.
1.2 Ratios
The Return On Assets of PFSI (1.60%) is comparable to the rest of the industry.
PFSI has a Return On Equity of 9.59%. This is comparable to the rest of the industry: PFSI outperforms 53.06% of its industry peers.
The Return On Invested Capital of PFSI (1.41%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PFSI is significantly below the industry average of 7.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 9.59% | ||
| ROIC | 1.41% |
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 14.58%, PFSI is in the better half of the industry, outperforming 63.27% 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 15.30%, PFSI is in line with its industry, outperforming 56.12% of the companies in the same industry.
In the last couple of years the Operating Margin of PFSI has declined.
PFSI's Gross Margin of 66.30% is fine compared to the rest of the industry. PFSI outperforms 79.59% of its industry peers.
In the last couple of years the Gross Margin of PFSI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.3% | ||
| PM (TTM) | 14.58% | ||
| GM | 66.3% |
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.
Compared to 1 year ago, PFSI has more shares outstanding
The number of shares outstanding for PFSI has been reduced compared to 5 years ago.
PFSI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.11, we must say that PFSI is in the distress zone and has some risk of bankruptcy.
PFSI has a Altman-Z score of 0.11. This is in the lower half of the industry: PFSI underperforms 60.20% of its industry peers.
PFSI has a Debt/Equity ratio of 3.34. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.34, PFSI is doing worse than 77.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.11 |
ROIC/WACC0.21
WACC6.62%
2.3 Liquidity
A Current Ratio of 0.02 indicates that PFSI may have some problems paying its short term obligations.
PFSI has a Current ratio of 0.02. This is amonst the worse of the industry: PFSI underperforms 83.67% of its industry peers.
PFSI has a Quick Ratio of 0.02. 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 Quick ratio of 0.02. This is amonst the worse of the industry: PFSI underperforms 83.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
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.
Measured over the past years, PFSI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.16% on average per year.
Looking at the last year, PFSI shows a very strong growth in Revenue. The Revenue has grown by 29.24%.
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
PFSI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.00% yearly.
PFSI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.56% yearly.
EPS Next Y33.76%
EPS Next 2Y39.71%
EPS Next 3Y32%
EPS Next 5YN/A
Revenue Next Year28.22%
Revenue Next 2Y26.26%
Revenue Next 3Y20.56%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.58, which indicates a correct 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 25.83, PFSI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 8.52, the valuation of PFSI can be described as very reasonable.
63.27% 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 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
PFSI's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.9 |
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 32.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)1.48
EPS Next 2Y39.71%
EPS Next 3Y32%
5. Dividend
5.1 Amount
PFSI has a yearly dividend return of 0.96%, which is pretty low.
PFSI's Dividend Yield is comparable with the industry average which is at 4.94.
With a Dividend Yield of 0.96, PFSI pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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.
The dividend of PFSI decreased in the last 3 years.
Dividend Growth(5Y)52.53%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
16.08% of the earnings are spent on dividend by PFSI. This is a low number and sustainable payout ratio.
PFSI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.08%
EPS Next 2Y39.71%
EPS Next 3Y32%
126
+1.55 (+1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners60.52%
Inst Owner Change-0.4%
Ins Owners4.71%
Ins Owner Change-0.21%
Market Cap6.52B
Revenue(TTM)2.90B
Net Income(TTM)386.60M
Analysts78.57
Price Target141.34 (12.17%)
Short Float %5.47%
Short Ratio4.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend1.03
Dividend Growth(5Y)52.53%
DP16.08%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.14%
Min EPS beat(2)-49.34%
Max EPS beat(2)-12.94%
EPS beat(4)0
Avg EPS beat(4)-39.28%
Min EPS beat(4)-56.05%
Max EPS beat(4)-12.94%
EPS beat(8)2
Avg EPS beat(8)-40.93%
EPS beat(12)3
Avg EPS beat(12)-26.91%
EPS beat(16)6
Avg EPS beat(16)-13.72%
Revenue beat(2)0
Avg Revenue beat(2)-21.13%
Min Revenue beat(2)-21.27%
Max Revenue beat(2)-20.99%
Revenue beat(4)0
Avg Revenue beat(4)-18.77%
Min Revenue beat(4)-21.27%
Max Revenue beat(4)-11.77%
Revenue beat(8)0
Avg Revenue beat(8)-17.07%
Revenue beat(12)2
Avg Revenue beat(12)-9.01%
Revenue beat(16)6
Avg Revenue beat(16)-4.29%
PT rev (1m)13.32%
PT rev (3m)10.75%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)6.79%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-7.74%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 8.52 | ||
| P/S | 2.46 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.9 |
EPS(TTM)9.28
EY7.37%
EPS(NY)14.8
Fwd EY11.74%
FCF(TTM)-31.67
FCFYN/A
OCF(TTM)-31.09
OCFYN/A
SpS51.27
BVpS77.98
TBVpS-108.51
PEG (NY)0.4
PEG (5Y)1.48
Graham Number127.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 9.59% | ||
| ROCE | 2.8% | ||
| ROIC | 1.41% | ||
| ROICexc | 1.42% | ||
| ROICexgc | 4.79% | ||
| OM | 15.3% | ||
| PM (TTM) | 14.58% | ||
| GM | 66.3% | ||
| 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-Score4
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 29.58 | ||
| Cap/Depr | 60.98% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 0.46 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 | ||
| Altman-Z | 0.11 |
F-Score4
WACC6.62%
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 Y33.76%
EPS Next 2Y39.71%
EPS Next 3Y32%
EPS Next 5YN/A
Revenue 1Y (TTM)29.24%
Revenue growth 3Y-12.14%
Revenue growth 5Y7.39%
Sales Q2Q%53.68%
Revenue Next Year28.22%
Revenue Next 2Y26.26%
Revenue Next 3Y20.56%
Revenue Next 5YN/A
EBIT growth 1Y-2.15%
EBIT growth 3Y-33.34%
EBIT growth 5Y-5.32%
EBIT Next Year87.51%
EBIT Next 3Y41.46%
EBIT Next 5YN/A
FCF growth 1Y-37.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-41.67%
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 3 / 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 13.58 and the Price/Book (PB) ratio is 1.62.
How financially healthy is PENNYMAC FINANCIAL SERVICES?
The financial health rating of PENNYMAC FINANCIAL SERVICES (PFSI) is 0 / 10.