PENNYMAC FINANCIAL SERVICES (PFSI) Stock Fundamental Analysis
USA - NYSE:PFSI - US70932M1071 - Common Stock
125.02 USD
-2.11 (-1.66%)
125.02 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PFSI. PFSI was compared to 101 industry peers in the Financial Services industry. Both the profitability and financial health of PFSI have multiple concerns. PFSI is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year PFSI was profitable.
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
Looking at the Return On Assets, with a value of 1.60%, PFSI is in line with its industry, outperforming 54.46% of the companies in the same industry.
PFSI's Return On Equity of 9.59% is in line compared to the rest of the industry. PFSI outperforms 55.45% of its industry peers.
PFSI has a Return On Invested Capital (1.41%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PFSI is significantly below the industry average of 7.65%.
| 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
The Profit Margin of PFSI (14.58%) is better than 63.37% of its industry peers.
PFSI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 15.30%, PFSI perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
PFSI's Operating Margin has declined in the last couple of years.
The Gross Margin of PFSI (66.30%) is better than 79.21% of its industry peers.
PFSI's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for PFSI has been increased compared to 1 year ago.
Compared to 5 years ago, PFSI has less shares outstanding
Compared to 1 year ago, PFSI has a worse debt to assets ratio.
2.2 Solvency
PFSI has an Altman-Z score of 0.11. This is a bad value and indicates that PFSI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PFSI (0.11) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.34 is on the high side and indicates that PFSI has dependencies on debt financing.
PFSI's Debt to Equity ratio of 3.34 is on the low side compared to the rest of the industry. PFSI is outperformed by 77.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.11 |
ROIC/WACC0.17
WACC8.35%
2.3 Liquidity
PFSI has a Current 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.
With a Current ratio value of 0.02, PFSI is not doing good in the industry: 83.17% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.02, PFSI is not doing good in the industry: 83.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.51% over the past year.
The Earnings Per Share has been growing by 9.16% on average over the past years. This is quite good.
PFSI shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.88%.
PFSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.39% yearly.
EPS 1Y (TTM)34.51%
EPS 3Y-19.77%
EPS 5Y9.16%
EPS Q2Q%37.3%
Revenue 1Y (TTM)21.88%
Revenue growth 3Y-12.14%
Revenue growth 5Y7.39%
Sales Q2Q%9.51%
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 30.55% on average per year.
PFSI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.23% yearly.
EPS Next Y26.52%
EPS Next 2Y38.34%
EPS Next 3Y30.55%
EPS Next 5YN/A
Revenue Next Year29.24%
Revenue Next 2Y26.36%
Revenue Next 3Y20.23%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
PFSI is valuated rather expensively with a Price/Earnings ratio of 17.34.
PFSI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.38, PFSI is valued a bit cheaper.
A Price/Forward Earnings ratio of 8.62 indicates a reasonable valuation of PFSI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PFSI indicates a somewhat cheap valuation: PFSI is cheaper than 69.31% of the companies listed 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 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 8.62 |
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 | 24.84 |
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 30.55% in the coming years.
PEG (NY)0.65
PEG (5Y)1.89
EPS Next 2Y38.34%
EPS Next 3Y30.55%
5. Dividend
5.1 Amount
PFSI has a yearly dividend return of 0.94%, which is pretty low.
Compared to an average industry Dividend Yield of 4.72, PFSI has a dividend in line with its industry peers.
With a Dividend Yield of 0.94, PFSI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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.
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
PFSI pays out 16.08% 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.
DP16.08%
EPS Next 2Y38.34%
EPS Next 3Y30.55%
125.02
-2.11 (-1.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.2%
Inst Owner Change-2.47%
Ins Owners4.73%
Ins Owner Change-0.26%
Market Cap6.46B
Analysts80
Price Target124.73 (-0.23%)
Short Float %5.07%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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)-0.12%
PT rev (3m)-1.88%
EPS NQ rev (1m)12.59%
EPS NQ rev (3m)-10.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.82%
Revenue NQ rev (1m)3.25%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)2.07%
Revenue NY rev (3m)-2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 8.62 | ||
| P/S | 2.44 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.84 |
EPS(TTM)7.21
EY5.77%
EPS(NY)14.51
Fwd EY11.6%
FCF(TTM)-31.67
FCFYN/A
OCF(TTM)-31.09
OCFYN/A
SpS51.27
BVpS77.98
TBVpS-108.51
PEG (NY)0.65
PEG (5Y)1.89
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%
ROICexcg growth 3Y-29.91%
ROICexcg 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 | 28.29 | ||
| Cap/Depr | 42.94% | ||
| 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
WACC8.35%
ROIC/WACC0.17
Cap/Depr(3y)108.32%
Cap/Depr(5y)170.56%
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)34.51%
EPS 3Y-19.77%
EPS 5Y9.16%
EPS Q2Q%37.3%
EPS Next Y26.52%
EPS Next 2Y38.34%
EPS Next 3Y30.55%
EPS Next 5YN/A
Revenue 1Y (TTM)21.88%
Revenue growth 3Y-12.14%
Revenue growth 5Y7.39%
Sales Q2Q%9.51%
Revenue Next Year29.24%
Revenue Next 2Y26.36%
Revenue Next 3Y20.23%
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