PENNYMAC FINANCIAL SERVICES (PFSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PFSI - US70932M1071 - Common Stock
145.59 USD
-0.77 (-0.53%)
145.59 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PFSI. PFSI was compared to 98 industry peers in the Financial Services industry. While PFSI is still in line with the averages on profitability rating, there are concerns on its financial health. PFSI is not overvalued while it is showing excellent growth. This is an interesting 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.
In the past 5 years PFSI has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: PFSI reported negative operating cash flow in multiple years.
1.2 Ratios
PFSI's Return On Assets of 1.96% is in line compared to the rest of the industry. PFSI outperforms 59.18% of its industry peers.
PFSI has a better Return On Equity (11.85%) than 65.31% of its industry peers.
PFSI has a Return On Invested Capital (1.83%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PFSI is significantly below the industry average of 8.44%.
| 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
PFSI's Profit Margin of 17.17% is fine compared to the rest of the industry. PFSI outperforms 65.31% of its industry peers.
PFSI's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 19.02%, PFSI is doing good in the industry, outperforming 66.33% of the companies in the same industry.
PFSI's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 68.13%, PFSI is doing good in the industry, outperforming 78.57% 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
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.
PFSI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that PFSI is in the distress zone and has some risk of bankruptcy.
PFSI has a Altman-Z score of 0.21. This is comparable to the rest of the industry: PFSI outperforms 45.92% of its industry peers.
A Debt/Equity ratio of 3.32 is on the high side and indicates that PFSI has dependencies on debt financing.
With a Debt to Equity ratio value of 3.32, 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 | 3.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.21 |
ROIC/WACC0.21
WACC8.53%
2.3 Liquidity
PFSI has a Current 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's Current ratio of 0.07 is on the low side compared to the rest of the industry. PFSI is outperformed by 78.57% of its industry peers.
A Quick Ratio of 0.07 indicates that PFSI may have some problems paying its short term obligations.
The Quick ratio of PFSI (0.07) is worse than 78.57% 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.
The Earnings Per Share has been growing by 9.16% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 29.41% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 22.89% on average over the next years. This is a very strong growth
EPS Next Y43.15%
EPS Next 2Y43.32%
EPS Next 3Y33.87%
EPS Next 5Y29.41%
Revenue Next Year28.4%
Revenue Next 2Y28.65%
Revenue Next 3Y22.2%
Revenue Next 5Y22.89%
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
A Price/Earnings ratio of 15.69 indicates a correct valuation of PFSI.
PFSI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. PFSI is valued slightly cheaper when compared to this.
PFSI is valuated reasonably with a Price/Forward Earnings ratio of 9.35.
PFSI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PFSI is cheaper than 61.22% 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 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 9.35 |
4.2 Price Multiples
PFSI's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.99 |
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 33.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)1.71
EPS Next 2Y43.32%
EPS Next 3Y33.87%
5. Dividend
5.1 Amount
PFSI has a yearly dividend return of 0.87%, which is pretty low.
PFSI's Dividend Yield is comparable with the industry average which is at 2.49.
With a Dividend Yield of 0.87, PFSI pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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
12.49% 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.
DP12.49%
EPS Next 2Y43.32%
EPS Next 3Y33.87%
145.59
-0.77 (-0.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners63.76%
Inst Owner Change0.01%
Ins Owners4.63%
Ins Owner Change-0.22%
Market Cap7.57B
Revenue(TTM)2.90B
Net Income(TTM)498.74M
Analysts80
Price Target148.03 (1.68%)
Short Float %4.08%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend1.03
Dividend Growth(5Y)52.53%
DP12.49%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
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)4.73%
PT rev (3m)18.68%
EPS NQ rev (1m)6.41%
EPS NQ rev (3m)9.24%
EPS NY rev (1m)2.31%
EPS NY rev (3m)6.1%
Revenue NQ rev (1m)2.13%
Revenue NQ rev (3m)7.89%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 9.35 | ||
| P/S | 2.61 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.99 |
EPS(TTM)9.28
EY6.37%
EPS(NY)15.57
Fwd EY10.69%
FCF(TTM)-37.47
FCFYN/A
OCF(TTM)-36.78
OCFYN/A
SpS55.88
BVpS80.97
TBVpS-106.81
PEG (NY)0.36
PEG (5Y)1.71
Graham Number130.02
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 | 0.21 |
F-Score5
WACC8.53%
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 Y43.15%
EPS Next 2Y43.32%
EPS Next 3Y33.87%
EPS Next 5Y29.41%
Revenue 1Y (TTM)29.24%
Revenue growth 3Y-12.14%
Revenue growth 5Y7.39%
Sales Q2Q%53.68%
Revenue Next Year28.4%
Revenue Next 2Y28.65%
Revenue Next 3Y22.2%
Revenue Next 5Y22.89%
EBIT growth 1Y44.72%
EBIT growth 3Y-33.34%
EBIT growth 5Y-5.32%
EBIT Next Year92.56%
EBIT Next 3Y43.77%
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.
Can you provide the valuation status for PENNYMAC FINANCIAL SERVICES?
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.
Can you provide the PE and PB ratios for PFSI stock?
The Price/Earnings (PE) ratio for PENNYMAC FINANCIAL SERVICES (PFSI) is 15.69 and the Price/Book (PB) ratio is 1.8.
How sustainable is the dividend of PENNYMAC FINANCIAL SERVICES (PFSI) stock?
The dividend rating of PENNYMAC FINANCIAL SERVICES (PFSI) is 3 / 10 and the dividend payout ratio is 12.49%.