PENNYMAC MORTGAGE INVESTMENT (PMT) Stock Fundamental Analysis
NYSE:PMT - New York Stock Exchange, Inc. - US70931T1034 - REIT - Currency: USD
Overall PMT gets a fundamental rating of 2 out of 10. We evaluated PMT against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of PMT have multiple concerns. PMT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PMT was profitable.
In the past year PMT has reported a negative cash flow from operations.
Of the past 5 years PMT 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: PMT reported negative operating cash flow in multiple years.
1.2 Ratios
With a decent Return On Assets value of 0.54%, PMT is doing good in the industry, outperforming 67.69% of the companies in the same industry.
The Return On Equity of PMT (4.25%) is better than 63.08% of its industry peers.
PMT has a Return On Invested Capital of 0.58%. This is in the better half of the industry: PMT outperforms 67.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PMT is in line with the industry average of 1.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 4.25% | ||
| ROIC | 0.58% |
ROA(3y)0.4%
ROA(5y)0.32%
ROE(3y)2.76%
ROE(5y)2.11%
ROIC(3y)0.94%
ROIC(5y)0.73%
1.3 Margins
PMT's Profit Margin of 7.86% is in line compared to the rest of the industry. PMT outperforms 52.31% of its industry peers.
In the last couple of years the Profit Margin of PMT has declined.
PMT has a Operating Margin of 10.10%. This is comparable to the rest of the industry: PMT outperforms 49.23% of its industry peers.
PMT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 17.60%, PMT is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
PMT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.1% | ||
| PM (TTM) | 7.86% | ||
| GM | 17.6% |
OM growth 3Y30.21%
OM growth 5Y-10.92%
PM growth 3Y47.37%
PM growth 5Y-15.02%
GM growth 3Y21.41%
GM growth 5Y-6.35%
2. Health
2.1 Basic Checks
PMT has more shares outstanding than it did 1 year ago.
PMT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PMT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.41, we must say that PMT is in the distress zone and has some risk of bankruptcy.
PMT's Altman-Z score of -0.41 is on the low side compared to the rest of the industry. PMT is outperformed by 61.54% of its industry peers.
PMT has a Debt/Equity ratio of 6.64. This is a high value indicating a heavy dependency on external financing.
PMT's Debt to Equity ratio of 6.64 is on the low side compared to the rest of the industry. PMT is outperformed by 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.41 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PMT has a Current Ratio of 0.05. This is a bad value and indicates that PMT is not financially healthy enough and could expect problems in meeting its short term obligations.
PMT's Current ratio of 0.05 is on the low side compared to the rest of the industry. PMT is outperformed by 76.92% of its industry peers.
A Quick Ratio of 0.05 indicates that PMT may have some problems paying its short term obligations.
The Quick ratio of PMT (0.05) is worse than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The earnings per share for PMT have decreased strongly by -38.00% in the last year.
PMT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.43% yearly.
The Revenue for PMT has decreased by -27.01% in the past year. This is quite bad
The Revenue has been growing slightly by 5.93% on average over the past years.
EPS 1Y (TTM)-38%
EPS 3Y72.3%
EPS 5Y-11.43%
EPS Q2Q%-102.56%
Revenue 1Y (TTM)-27.01%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%-40.08%
3.2 Future
The Earnings Per Share is expected to grow by 7.26% on average over the next years.
PMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.72% yearly.
EPS Next Y-9.2%
EPS Next 2Y9.19%
EPS Next 3Y7.26%
EPS Next 5YN/A
Revenue Next Year4.13%
Revenue Next 2Y9.76%
Revenue Next 3Y6.72%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.20, the valuation of PMT can be described as correct.
63.08% of the companies in the same industry are more expensive than PMT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.25. PMT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 7.74, the valuation of PMT can be described as very cheap.
Based on the Price/Forward Earnings ratio, PMT is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, PMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.19%
EPS Next 3Y7.26%
5. Dividend
5.1 Amount
PMT has a Yearly Dividend Yield of 12.97%, which is a nice return.
PMT's Dividend Yield is comparable with the industry average which is at 14.00.
PMT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.97% |
5.2 History
The dividend of PMT has a limited annual growth rate of 0.26%.
PMT has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of PMT decreased recently.
Dividend Growth(5Y)0.26%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
PMT pays out 224.01% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP224.01%
EPS Next 2Y9.19%
EPS Next 3Y7.26%
12.28
-0.06 (-0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners69.87%
Inst Owner Change5.03%
Ins Owners0.78%
Ins Owner Change6.72%
Market Cap1.07B
Analysts69.23
Price Target14.13 (15.07%)
Short Float %4.74%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.97% |
Yearly Dividend2.09
Dividend Growth(5Y)0.26%
DP224.01%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-44.98%
Min EPS beat(2)-102.55%
Max EPS beat(2)12.58%
EPS beat(4)1
Avg EPS beat(4)-35.93%
Min EPS beat(4)-102.55%
Max EPS beat(4)12.58%
EPS beat(8)4
Avg EPS beat(8)-9.52%
EPS beat(12)5
Avg EPS beat(12)-60.21%
EPS beat(16)5
Avg EPS beat(16)-83.65%
Revenue beat(2)1
Avg Revenue beat(2)-19.37%
Min Revenue beat(2)-52.49%
Max Revenue beat(2)13.74%
Revenue beat(4)1
Avg Revenue beat(4)-18.35%
Min Revenue beat(4)-52.49%
Max Revenue beat(4)13.74%
Revenue beat(8)2
Avg Revenue beat(8)-3.57%
Revenue beat(12)4
Avg Revenue beat(12)14.25%
Revenue beat(16)6
Avg Revenue beat(16)20.85%
PT rev (1m)-3.72%
PT rev (3m)-3.96%
EPS NQ rev (1m)0.75%
EPS NQ rev (3m)-7.6%
EPS NY rev (1m)-24.6%
EPS NY rev (3m)-25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.13%
Revenue NY rev (1m)-11.02%
Revenue NY rev (3m)-9.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 7.74 | ||
| P/S | 1.04 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.93
EY7.57%
EPS(NY)1.59
Fwd EY12.91%
FCF(TTM)-33.96
FCFYN/A
OCF(TTM)-33.96
OCFYN/A
SpS11.83
BVpS21.87
TBVpS-21.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 4.25% | ||
| ROCE | 1.24% | ||
| ROIC | 0.58% | ||
| ROICexc | 0.59% | ||
| ROICexgc | 0.82% | ||
| OM | 10.1% | ||
| PM (TTM) | 7.86% | ||
| GM | 17.6% | ||
| FCFM | N/A |
ROA(3y)0.4%
ROA(5y)0.32%
ROE(3y)2.76%
ROE(5y)2.11%
ROIC(3y)0.94%
ROIC(5y)0.73%
ROICexc(3y)0.96%
ROICexc(5y)0.74%
ROICexgc(3y)1.45%
ROICexgc(5y)1.08%
ROCE(3y)2.12%
ROCE(5y)1.72%
ROICexcg growth 3Y52.36%
ROICexcg growth 5Y-5.33%
ROICexc growth 3Y46.74%
ROICexc growth 5Y-8.88%
OM growth 3Y30.21%
OM growth 5Y-10.92%
PM growth 3Y47.37%
PM growth 5Y-15.02%
GM growth 3Y21.41%
GM growth 5Y-6.35%
F-Score2
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.14 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.41 |
F-Score2
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38%
EPS 3Y72.3%
EPS 5Y-11.43%
EPS Q2Q%-102.56%
EPS Next Y-9.2%
EPS Next 2Y9.19%
EPS Next 3Y7.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-27.01%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%-40.08%
Revenue Next Year4.13%
Revenue Next 2Y9.76%
Revenue Next 3Y6.72%
Revenue Next 5YN/A
EBIT growth 1Y-62.44%
EBIT growth 3Y47.27%
EBIT growth 5Y-5.63%
EBIT Next Year551.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-138.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-138.53%
OCF growth 3YN/A
OCF growth 5YN/A