PENNYMAC FINANCIAL SERVICES (PFSI) Fundamental Analysis & Valuation

NYSE:PFSI • US70932M1071

Current stock price

91.74 USD
-0.93 (-1%)
At close:
91.74 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.
  • 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

  • With a Return On Assets value of 1.70%, PFSI perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
  • PFSI has a Return On Equity (11.63%) which is in line with its industry peers.
  • The Return On Invested Capital of PFSI (1.71%) is comparable to the rest of the industry.
  • PFSI had an Average Return On Invested Capital over the past 3 years of 1.61%. This is significantly below the industry average of 8.00%.
  • 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

  • With a decent Profit Margin value of 16.66%, PFSI is doing good in the industry, outperforming 67.68% of the companies in the same industry.
  • In the last couple of years the Profit Margin of PFSI has declined.
  • PFSI has a better Operating Margin (18.49%) than 65.66% 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 77.78% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 1 year ago, PFSI has more shares outstanding
  • PFSI has less shares outstanding than it did 5 years ago.
  • 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 0.03, we must say that PFSI is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.03, PFSI is doing worse than 60.61% of the companies in the same industry.
  • A Debt/Equity ratio of 3.63 is on the high side and indicates that PFSI has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 3.63, PFSI is doing worse than 74.75% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.63
Debt/FCF N/A
Altman-Z 0.03
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 0.04 indicates that PFSI may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.04, PFSI is doing worse than 81.82% of the companies in the same industry.
  • PFSI has a Quick Ratio of 0.04. 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's Quick ratio of 0.04 is on the low side compared to the rest of the industry. PFSI is outperformed by 81.82% of its industry peers.
Industry RankSector Rank
Current Ratio 0.04
Quick Ratio 0.04
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!
  • The Revenue has been decreasing by -5.44% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 23.27% on average over the next years. This is a very strong growth
  • PFSI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.37% yearly.
EPS Next Y34.25%
EPS Next 2Y30.56%
EPS Next 3Y23.27%
EPS Next 5YN/A
Revenue Next Year18.58%
Revenue Next 2Y17.29%
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

  • With a Price/Earnings ratio of 9.86, the valuation of PFSI can be described as very reasonable.
  • PFSI's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.38. PFSI is valued rather cheaply when compared to this.
  • PFSI is valuated cheaply with a Price/Forward Earnings ratio of 7.35.
  • PFSI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PFSI is cheaper than 73.74% of the companies in the same industry.
  • PFSI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.20.
Industry RankSector Rank
PE 9.86
Fwd PE 7.35
PFSI Price Earnings VS Forward Price EarningsPFSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as PFSI.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.51
PFSI Per share dataPFSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 -100

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 23.27% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y30.56%
EPS Next 3Y23.27%

More info and screens

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

5

5. PFSI Dividend Analysis

5.1 Amount

  • PFSI has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
  • In the last 3 months the price of PFSI has falen by -42.47%. 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 1.86, PFSI pays a bit more dividend than its industry peers.
  • PFSI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.31%

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.
  • PFSI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)24.03%
Div Incr Years2
Div Non Decr Years3
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 2Y30.56%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

PFSI Fundamentals: All Metrics, Ratios and Statistics

PENNYMAC FINANCIAL SERVICES

NYSE:PFSI (4/15/2026, 8:13:47 PM)

After market: 91.74 0 (0%)

91.74

-0.93 (-1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)01-29
Earnings (Next)04-29
Inst Owners65.67%
Inst Owner Change0.01%
Ins Owners4.69%
Ins Owner Change-0.03%
Market Cap4.79B
Revenue(TTM)3.01B
Net Income(TTM)501.08M
Analysts80
Price Target131 (42.79%)
Short Float %5.69%
Short Ratio1.97
Dividend
Industry RankSector Rank
Dividend Yield 1.31%
Yearly Dividend1.21
Dividend Growth(5Y)24.03%
DP12.48%
Div Incr Years2
Div Non Decr Years3
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)-3.44%
PT rev (3m)-11.5%
EPS NQ rev (1m)5.34%
EPS NQ rev (3m)-28.88%
EPS NY rev (1m)-3.79%
EPS NY rev (3m)-19.82%
Revenue NQ rev (1m)1.67%
Revenue NQ rev (3m)-12.82%
Revenue NY rev (1m)1.21%
Revenue NY rev (3m)-6.38%
Valuation
Industry RankSector Rank
PE 9.86
Fwd PE 7.35
P/S 1.59
P/FCF N/A
P/OCF N/A
P/B 1.11
P/tB N/A
EV/EBITDA 17.51
EPS(TTM)9.3
EY10.14%
EPS(NY)12.48
Fwd EY13.61%
FCF(TTM)-32.65
FCFYN/A
OCF(TTM)-31.67
OCFYN/A
SpS57.64
BVpS82.59
TBVpS-103.47
PEG (NY)0.29
PEG (5Y)N/A
Graham Number131.465 (43.3%)
Profitability
Industry RankSector Rank
ROA 1.7%
ROE 11.63%
ROCE 3.1%
ROIC 1.71%
ROICexc 1.73%
ROICexgc 5.51%
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)6.83%
ROICexgc(5y)12.18%
ROCE(3y)2.85%
ROCE(5y)5.66%
ROICexgc growth 3Y-41.08%
ROICexgc growth 5Y-20.98%
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 0.04
Quick Ratio 0.04
Altman-Z 0.03
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 Y34.25%
EPS Next 2Y30.56%
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 Year18.58%
Revenue Next 2Y17.29%
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.


What is the profitability of PFSI stock?

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


How financially healthy is PENNYMAC FINANCIAL SERVICES?

The financial health rating of PENNYMAC FINANCIAL SERVICES (PFSI) is 1 / 10.


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

The dividend rating of PENNYMAC FINANCIAL SERVICES (PFSI) is 5 / 10 and the dividend payout ratio is 12.48%.