PENNYMAC MORTGAGE INVESTMENT (PMT)
US70931T1034 - REIT
Overall PMT gets a fundamental rating of 4 out of 10. We evaluated PMT against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While PMT is still in line with the averages on profitability rating, there are concerns on its financial health. PMT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PMT was profitable.
In the past year PMT had a positive cash flow from operations.
Of the past 5 years PMT 4 years were profitable.
In multiple years PMT reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.58%, PMT is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Return On Equity of PMT (9.92%) is better than 92.19% of its industry peers.
With a decent Return On Invested Capital value of 1.83%, PMT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PMT is in line with the industry average of 1.57%.
The 3 year average ROIC (0.72%) for PMT is below the current ROIC(1.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 9.92% | ||
| ROIC | 1.83% |
ROA(3y)0.19%
ROA(5y)0.5%
ROE(3y)1.08%
ROE(5y)2.52%
ROIC(3y)0.72%
ROIC(5y)0.8%
1.3 Margins
PMT's Profit Margin of 13.78% is in line compared to the rest of the industry. PMT outperforms 59.38% of its industry peers.
In the last couple of years the Profit Margin of PMT has declined.
PMT has a better Operating Margin (19.62%) than 70.31% of its industry peers.
In the last couple of years the Operating Margin of PMT has declined.
Looking at the Gross Margin, with a value of 25.43%, PMT is doing worse than 60.94% of the companies in the same industry.
In the last couple of years the Gross Margin of PMT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.62% | ||
| PM (TTM) | 13.78% | ||
| GM | 25.43% |
OM growth 3Y25.7%
OM growth 5Y-7.63%
PM growth 3Y54.4%
PM growth 5Y-10.97%
GM growth 3Y22.58%
GM growth 5Y-5.74%
2. Health
2.1 Basic Checks
Compared to 1 year ago, PMT has less shares outstanding
The number of shares outstanding for PMT has been increased compared to 5 years ago.
PMT has a better debt/assets ratio than last year.
2.2 Solvency
PMT has an Altman-Z score of -0.30. This is a bad value and indicates that PMT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.30, PMT is doing worse than 64.06% of the companies in the same industry.
The Debt to FCF ratio of PMT is 4.37, which is a neutral value as it means it would take PMT, 4.37 years of fcf income to pay off all of its debts.
PMT has a better Debt to FCF ratio (4.37) than 96.88% of its industry peers.
PMT has a Debt/Equity ratio of 5.07. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PMT (5.07) is worse than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.07 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | -0.3 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.05 indicates that PMT may have some problems paying its short term obligations.
PMT has a Current ratio of 0.05. This is amonst the worse of the industry: PMT underperforms 81.25% of its industry peers.
PMT has a Quick 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 Quick ratio of 0.05 is on the low side compared to the rest of the industry. PMT is outperformed by 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
PMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 440.91%, which is quite impressive.
Measured over the past years, PMT shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.15% on average per year.
PMT shows a strong growth in Revenue. In the last year, the Revenue has grown by 68.28%.
PMT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.23% yearly.
EPS 1Y (TTM)440.91%
EPS 3Y88.6%
EPS 5Y-4.15%
EPS growth Q2Q-22%
Revenue 1Y (TTM)68.28%
Revenue growth 3Y16.42%
Revenue growth 5Y17.23%
Revenue growth Q2Q-17.88%
3.2 Future
PMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.16% yearly.
Based on estimates for the next years, PMT will show a decrease in Revenue. The Revenue will decrease by -5.63% on average per year.
EPS Next Y-16.83%
EPS Next 2Y-5.34%
EPS Next 3Y1.16%
EPS Next 5YN/A
Revenue Next Year-19.68%
Revenue Next 2Y-5.63%
Revenue Next 3YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.03, the valuation of PMT can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as PMT.
When comparing the Price/Earnings ratio of PMT to the average of the S&P500 Index (28.15), we can say PMT is valued rather cheaply.
The Price/Forward Earnings ratio is 10.43, which indicates a very decent valuation of PMT.
The rest of the industry has a similar Price/Forward Earnings ratio as PMT.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, PMT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.03 | ||
| Fwd PE | 10.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PMT indicates a rather cheap valuation: PMT is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.57 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.34%
EPS Next 3Y1.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.55%, PMT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.69, PMT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.33, PMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.55% |
5.2 History
The dividend of PMT decreases each year by -2.03%.
PMT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-2.03%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PMT pays out 93.37% of its income as dividend. This is not a sustainable payout ratio.
DP93.37%
EPS Next 2Y-5.34%
EPS Next 3Y1.16%
PENNYMAC MORTGAGE INVESTMENT
NYSE:PMT (5/17/2024, 6:19:44 PM)
After market: 15.04 0 (0%)15.04
-0.13 (-0.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.03 | ||
| Fwd PE | 10.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 9.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.62% | ||
| PM (TTM) | 13.78% | ||
| GM | 25.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)440.91%
EPS 3Y88.6%
EPS 5Y
EPS growth Q2Q
EPS Next Y-16.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)68.28%
Revenue growth 3Y16.42%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y