PENNYMAC FINANCIAL SERVICES (PFSI) Stock Fundamental Analysis
USA - NYSE:PFSI - US70932M1071 - Common Stock
124.45 USD
-0.57 (-0.46%)
124 USD
-0.45 (-0.36%)
Overall PFSI gets a fundamental rating of 4 out of 10. We evaluated PFSI against 98 industry peers in the Financial Services industry. PFSI has a bad profitability rating. Also its financial health evaluation is rather negative. PFSI is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
Each year in the past 5 years PFSI has been profitable.
In multiple years PFSI reported negative operating cash flow during the last 5 years.
1.2 Ratios
PFSI has a Return On Assets (1.60%) which is in line with its industry peers.
PFSI has a Return On Equity (9.59%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 1.41%, PFSI perfoms like the industry average, outperforming 43.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
The Profit Margin of PFSI (14.58%) is better than 63.27% of its industry peers.
PFSI's Profit Margin has declined in the last couple of years.
PFSI's Operating Margin of 15.30% is in line compared to the rest of the industry. PFSI outperforms 56.12% of its industry peers.
PFSI's Operating Margin has declined in the last couple of years.
The Gross Margin of PFSI (66.30%) is better than 79.59% 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
PFSI has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 0.11, PFSI is not doing good in the industry: 60.20% of the companies in the same industry are doing better.
PFSI has a Debt/Equity ratio of 3.34. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.34, PFSI is not doing good in the industry: 77.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.11 |
ROIC/WACC0.21
WACC6.64%
2.3 Liquidity
A Current Ratio of 0.02 indicates that PFSI may have some problems paying its short term obligations.
PFSI's Current ratio of 0.02 is on the low side compared to the rest of the industry. PFSI is outperformed by 83.67% of its industry peers.
A Quick Ratio of 0.02 indicates that PFSI may have some problems paying 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
The Earnings Per Share has grown by an impressive 89.78% over the past year.
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.
PFSI shows a strong growth in Revenue. In the last year, 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
The Earnings Per Share is expected to grow by 32.00% on average over the next years. This is a very strong growth
Based on estimates for the next years, PFSI will show a very strong growth in Revenue. The Revenue will grow by 20.56% on average per year.
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
PFSI is valuated correctly with a Price/Earnings ratio of 13.41.
PFSI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.67, PFSI is valued a bit cheaper.
PFSI is valuated reasonably with a Price/Forward Earnings ratio of 8.41.
Based on the Price/Forward Earnings ratio, PFSI is valued a bit cheaper than 63.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 31.86. PFSI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PFSI.
| 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.
A more expensive valuation may be justified as PFSI's earnings are expected to grow with 32.00% in the coming years.
PEG (NY)0.4
PEG (5Y)1.46
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 4.92.
With a Dividend Yield of 0.96, PFSI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
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%
124.45
-0.57 (-0.46%)
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 Cap6.44B
Revenue(TTM)2.90B
Net Income(TTM)386.60M
Analysts80
Price Target141.34 (13.57%)
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 | 13.41 | ||
| Fwd PE | 8.41 | ||
| P/S | 2.43 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.9 |
EPS(TTM)9.28
EY7.46%
EPS(NY)14.8
Fwd EY11.89%
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)1.46
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
WACC6.64%
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 13.41 and the Price/Book (PB) ratio is 1.6.
How financially healthy is PENNYMAC FINANCIAL SERVICES?
The financial health rating of PENNYMAC FINANCIAL SERVICES (PFSI) is 0 / 10.