PENNYMAC MORTGAGE INVESTMENT (PMT) Stock Fundamental Analysis
USA - NYSE:PMT - US70931T1034 - REIT
12.59 USD
+0.08 (+0.64%)
12.6 USD
+0.01 (+0.08%)
Overall PMT gets a fundamental rating of 3 out of 10. We evaluated PMT against 67 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 is quite expensive at the moment. It does show a decent growth rate.
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.
PMT had positive earnings in 4 of the past 5 years.
In multiple years PMT reported negative operating cash flow during the last 5 years.
1.2 Ratios
PMT's Return On Assets of 0.37% is fine compared to the rest of the industry. PMT outperforms 68.66% of its industry peers.
With a decent Return On Equity value of 3.37%, PMT is doing good in the industry, outperforming 64.18% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.46%, PMT is in the better half of the industry, outperforming 65.67% of the companies in the same industry.
PMT had an Average Return On Invested Capital over the past 3 years of 0.94%. This is in line with the industry average of 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 3.37% | ||
| ROIC | 0.46% |
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
Looking at the Profit Margin, with a value of 5.92%, PMT is in line with its industry, outperforming 58.21% of the companies in the same industry.
In the last couple of years the Profit Margin of PMT has declined.
PMT has a Operating Margin (8.70%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PMT has declined.
PMT has a Gross Margin (16.53%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PMT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.7% | ||
| PM (TTM) | 5.92% | ||
| GM | 16.53% |
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
Compared to 1 year ago, PMT has more shares outstanding
Compared to 5 years ago, PMT has less shares outstanding
PMT has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of -0.41, PMT is doing worse than 61.19% of the companies in the same industry.
PMT has a Debt/Equity ratio of 7.80. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PMT (7.80) is worse than 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.41 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PMT has a Current Ratio of 0.06. This is a bad value and indicates that PMT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.06, PMT is not doing good in the industry: 71.64% of the companies in the same industry are doing better.
PMT has a Quick Ratio of 0.06. 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 0.06 is on the low side compared to the rest of the industry. PMT is outperformed by 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
The earnings per share for PMT have decreased strongly by -52.32% in the last year.
The earnings per share for PMT have been decreasing by -11.43% on average. This is quite bad
The Revenue has decreased by -4.01% in the past year.
Measured over the past years, PMT shows a small growth in Revenue. The Revenue has been growing by 5.93% on average per year.
EPS 1Y (TTM)-52.32%
EPS 3Y72.3%
EPS 5Y-11.43%
EPS Q2Q%-123.53%
Revenue 1Y (TTM)-4.01%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%-1.4%
3.2 Future
Based on estimates for the next years, PMT will show a small growth in Earnings Per Share. The EPS will grow by 6.60% on average per year.
PMT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.60% yearly.
EPS Next Y-48.36%
EPS Next 2Y8.96%
EPS Next 3Y6.6%
EPS Next 5YN/A
Revenue Next Year-4.86%
Revenue Next 2Y10.3%
Revenue Next 3Y11.6%
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
Based on the Price/Earnings ratio of 17.49, the valuation of PMT can be described as rather expensive.
PMT's Price/Earnings is on the same level as the industry average.
PMT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
A Price/Forward Earnings ratio of 7.97 indicates a rather cheap valuation of PMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PMT indicates a somewhat cheap valuation: PMT is cheaper than 64.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.29, PMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 7.97 |
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 2Y8.96%
EPS Next 3Y6.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.17%, PMT is a good candidate for dividend investing.
PMT's Dividend Yield is slightly below the industry average, which is at 11.22.
Compared to an average S&P500 Dividend Yield of 2.41, PMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.17% |
5.2 History
The dividend of PMT has a limited annual growth rate of 0.26%.
PMT has been paying a dividend for at least 10 years, so it has 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 288.01% of its income as dividend. This is not a sustainable payout ratio.
PMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP288.01%
EPS Next 2Y8.96%
EPS Next 3Y6.6%
12.59
+0.08 (+0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners70.53%
Inst Owner Change-3.02%
Ins Owners0.94%
Ins Owner Change0.36%
Market Cap1.10B
Analysts67.69
Price Target13.35 (6.04%)
Short Float %4.93%
Short Ratio5.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.17% |
Yearly Dividend2.09
Dividend Growth(5Y)0.26%
DP288.01%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-106.66%
Min EPS beat(2)-110.78%
Max EPS beat(2)-102.55%
EPS beat(4)1
Avg EPS beat(4)-50.49%
Min EPS beat(4)-110.78%
Max EPS beat(4)12.58%
EPS beat(8)4
Avg EPS beat(8)-16.6%
EPS beat(12)5
Avg EPS beat(12)-29.4%
EPS beat(16)5
Avg EPS beat(16)-87.62%
Revenue beat(2)0
Avg Revenue beat(2)-39.38%
Min Revenue beat(2)-52.49%
Max Revenue beat(2)-26.28%
Revenue beat(4)1
Avg Revenue beat(4)-19.24%
Min Revenue beat(4)-52.49%
Max Revenue beat(4)13.74%
Revenue beat(8)2
Avg Revenue beat(8)-4.7%
Revenue beat(12)4
Avg Revenue beat(12)13.05%
Revenue beat(16)5
Avg Revenue beat(16)8.58%
PT rev (1m)0%
PT rev (3m)-5.58%
EPS NQ rev (1m)1.4%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)-8.32%
EPS NY rev (3m)-45.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 7.97 | ||
| P/S | 1.03 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.72
EY5.72%
EPS(NY)1.58
Fwd EY12.54%
FCF(TTM)-59.92
FCFYN/A
OCF(TTM)-59.92
OCFYN/A
SpS12.2
BVpS21.44
TBVpS-21.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 3.37% | ||
| ROCE | 0.96% | ||
| ROIC | 0.46% | ||
| ROICexc | 0.47% | ||
| ROICexgc | 0.63% | ||
| OM | 8.7% | ||
| PM (TTM) | 5.92% | ||
| GM | 16.53% | ||
| 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 Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.13 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| 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)-52.32%
EPS 3Y72.3%
EPS 5Y-11.43%
EPS Q2Q%-123.53%
EPS Next Y-48.36%
EPS Next 2Y8.96%
EPS Next 3Y6.6%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.01%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%-1.4%
Revenue Next Year-4.86%
Revenue Next 2Y10.3%
Revenue Next 3Y11.6%
Revenue Next 5YN/A
EBIT growth 1Y-57.96%
EBIT growth 3Y47.27%
EBIT growth 5Y-5.63%
EBIT Next Year551.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-713.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-713.11%
OCF growth 3YN/A
OCF growth 5YN/A