PENNYMAC FINANCIAL SERVICES (PFSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PFSI - US70932M1071 - Common Stock
134.57 USD
-1.49 (-1.1%)
134.57 USD
0 (0%)
Overall PFSI gets a fundamental rating of 4 out of 10. We evaluated PFSI against 98 industry peers in the Financial Services industry. There are concerns on the financial health of PFSI while its profitability can be described as average. 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.
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.
1.2 Ratios
PFSI has a Return On Assets (1.96%) which is in line with its industry peers.
With a decent Return On Equity value of 11.85%, PFSI is doing good in the industry, outperforming 65.31% of the companies in the same industry.
PFSI has a Return On Invested Capital (1.83%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PFSI is significantly below the industry average of 8.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 11.85% | ||
| ROIC | 1.83% |
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 (17.17%) is better than 66.33% of its industry peers.
PFSI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.02%, PFSI is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
PFSI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 68.13%, PFSI is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
PFSI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.02% | ||
| PM (TTM) | 17.17% | ||
| GM | 68.13% |
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
PFSI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PFSI has more shares outstanding than it did 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
Based on the Altman-Z score of 0.19, we must say that PFSI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.19, PFSI perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
A Debt/Equity ratio of 3.32 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 3.32, PFSI is doing worse than 77.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.19 |
ROIC/WACC0.28
WACC6.63%
2.3 Liquidity
A Current Ratio of 0.07 indicates that PFSI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.07, PFSI is doing worse than 80.61% of the companies in the same industry.
PFSI has a Quick Ratio of 0.07. 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 0.07. This is amonst the worse of the industry: PFSI underperforms 80.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
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%.
PFSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.39% yearly.
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 33.37% yearly.
The Revenue is expected to grow by 21.91% on average over the next years. This is a very strong growth
EPS Next Y43.28%
EPS Next 2Y43.22%
EPS Next 3Y33.37%
EPS Next 5YN/A
Revenue Next Year30.61%
Revenue Next 2Y28.54%
Revenue Next 3Y21.91%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.50, PFSI is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as PFSI.
PFSI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.66, the valuation of PFSI can be described as very reasonable.
PFSI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PFSI is cheaper than 62.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. PFSI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 8.66 |
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 | 21.03 |
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 33.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)1.58
EPS Next 2Y43.22%
EPS Next 3Y33.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, PFSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.20, PFSI has a dividend in line with its industry peers.
With a Dividend Yield of 0.88, PFSI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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 12.49% of its income as dividend. This is a sustainable payout ratio.
PFSI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP12.49%
EPS Next 2Y43.22%
EPS Next 3Y33.37%
134.57
-1.49 (-1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners60.52%
Inst Owner Change5.41%
Ins Owners4.71%
Ins Owner Change-0.21%
Market Cap6.99B
Revenue(TTM)2.90B
Net Income(TTM)498.74M
Analysts78.57
Price Target141.34 (5.03%)
Short Float %5.58%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend1.03
Dividend Growth(5Y)52.53%
DP12.49%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.46%
Min EPS beat(2)-12.94%
Max EPS beat(2)13.86%
EPS beat(4)1
Avg EPS beat(4)-21.8%
Min EPS beat(4)-49.34%
Max EPS beat(4)13.86%
EPS beat(8)2
Avg EPS beat(8)-39.52%
EPS beat(12)3
Avg EPS beat(12)-35.2%
EPS beat(16)6
Avg EPS beat(16)-13.25%
Revenue beat(2)1
Avg Revenue beat(2)-7.71%
Min Revenue beat(2)-21.27%
Max Revenue beat(2)5.84%
Revenue beat(4)1
Avg Revenue beat(4)-12.04%
Min Revenue beat(4)-21.27%
Max Revenue beat(4)5.84%
Revenue beat(8)1
Avg Revenue beat(8)-16.04%
Revenue beat(12)2
Avg Revenue beat(12)-11.42%
Revenue beat(16)6
Avg Revenue beat(16)-4.33%
PT rev (1m)13.32%
PT rev (3m)13.85%
EPS NQ rev (1m)3.37%
EPS NQ rev (3m)10.33%
EPS NY rev (1m)7.12%
EPS NY rev (3m)13.24%
Revenue NQ rev (1m)7.14%
Revenue NQ rev (3m)9.67%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 8.66 | ||
| P/S | 2.4 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.03 |
EPS(TTM)9.28
EY6.9%
EPS(NY)15.55
Fwd EY11.55%
FCF(TTM)-37.66
FCFYN/A
OCF(TTM)-36.97
OCFYN/A
SpS56.17
BVpS81.37
TBVpS-107.35
PEG (NY)0.34
PEG (5Y)1.58
Graham Number130.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 11.85% | ||
| ROCE | 3.49% | ||
| ROIC | 1.83% | ||
| ROICexc | 1.87% | ||
| ROICexgc | 6.41% | ||
| OM | 19.02% | ||
| PM (TTM) | 17.17% | ||
| GM | 68.13% | ||
| 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-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 23.4 | ||
| Cap/Depr | 79.44% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 0.6 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | 0.19 |
F-Score5
WACC6.63%
ROIC/WACC0.28
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 Y43.28%
EPS Next 2Y43.22%
EPS Next 3Y33.37%
EPS Next 5YN/A
Revenue 1Y (TTM)29.24%
Revenue growth 3Y-12.14%
Revenue growth 5Y7.39%
Sales Q2Q%53.68%
Revenue Next Year30.61%
Revenue Next 2Y28.54%
Revenue Next 3Y21.91%
Revenue Next 5YN/A
EBIT growth 1Y44.72%
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-24.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-25.5%
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 4 / 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 14.5 and the Price/Book (PB) ratio is 1.65.
How financially healthy is PENNYMAC FINANCIAL SERVICES?
The financial health rating of PENNYMAC FINANCIAL SERVICES (PFSI) is 1 / 10.