PENNYMAC MORTGAGE INVESTMENT (PMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PMT - US70931T1034 - REIT
12.535 USD
-0.13 (-1.07%)
We assign a fundamental rating of 3 out of 10 to PMT. PMT was compared to 69 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. PMT has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
PMT had a negative operating cash flow in the past year.
PMT had positive earnings in 4 of the past 5 years.
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
PMT has a Return On Assets of 0.43%. This is comparable to the rest of the industry: PMT outperforms 53.62% of its industry peers.
With a Return On Equity value of 4.24%, PMT perfoms like the industry average, outperforming 55.07% of the companies in the same industry.
PMT has a Return On Invested Capital (0.51%) which is comparable to the rest of the 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 1.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 4.24% | ||
| ROIC | 0.51% |
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
The Profit Margin of PMT (7.09%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PMT has declined.
PMT has a Operating Margin of 10.03%. This is comparable to the rest of the industry: PMT outperforms 52.17% of its industry peers.
In the last couple of years the Operating Margin of PMT has declined.
With a Gross Margin value of 17.95%, PMT is not doing good in the industry: 68.12% 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 | 10.03% | ||
| PM (TTM) | 7.09% | ||
| GM | 17.95% |
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
PMT has less shares outstanding than it did 5 years ago.
PMT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.42, we must say that PMT is in the distress zone and has some risk of bankruptcy.
PMT has a Altman-Z score of -0.42. This is comparable to the rest of the industry: PMT outperforms 40.58% of its industry peers.
PMT has a Debt/Equity ratio of 8.66. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PMT (8.66) is worse than 84.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.42 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PMT has a Current Ratio of 0.04. 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 0.04 is on the low side compared to the rest of the industry. PMT is outperformed by 79.71% of its industry peers.
PMT has a Quick Ratio of 0.04. This is a bad value and indicates that PMT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.04, PMT is doing worse than 79.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
The earnings per share for PMT have decreased strongly by -33.09% in the last year.
The earnings per share for PMT have been decreasing by -11.43% on average. This is quite bad
PMT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.82%.
PMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.93% yearly.
EPS 1Y (TTM)-33.09%
EPS 3Y72.3%
EPS 5Y-11.43%
EPS Q2Q%52.78%
Revenue 1Y (TTM)9.82%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%22.71%
3.2 Future
Based on estimates for the next years, PMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.31% on average per year.
The Revenue is expected to grow by 10.12% on average over the next years. This is quite good.
EPS Next Y-32.29%
EPS Next 2Y11.6%
EPS Next 3Y8.31%
EPS Next 5YN/A
Revenue Next Year-4.73%
Revenue Next 2Y11.15%
Revenue Next 3Y10.12%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 13.77 indicates a correct valuation of PMT.
PMT's Price/Earnings ratio is in line with the industry average.
PMT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 7.57, the valuation of PMT can be described as very cheap.
PMT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PMT is cheaper than 69.57% of the companies in the same industry.
PMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 7.57 |
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 2Y11.6%
EPS Next 3Y8.31%
5. Dividend
5.1 Amount
PMT has a Yearly Dividend Yield of 12.64%, which is a nice return.
PMT's Dividend Yield is comparable with the industry average which is at 12.09.
Compared to an average S&P500 Dividend Yield of 2.31, PMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.64% |
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.
PMT has decreased its dividend recently.
Dividend Growth(5Y)0.26%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
227.39% of the earnings are spent on dividend by PMT. This is not a sustainable payout ratio.
PMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP227.39%
EPS Next 2Y11.6%
EPS Next 3Y8.31%
NYSE:PMT (12/9/2025, 11:42:56 AM)
12.535
-0.13 (-1.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners70.69%
Inst Owner Change-0.58%
Ins Owners0.96%
Ins Owner Change0.66%
Market Cap1.09B
Revenue(TTM)1.12B
Net Income(TTM)79.68M
Analysts67.69
Price Target13.52 (7.86%)
Short Float %5.46%
Short Ratio5.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.64% |
Yearly Dividend2.09
Dividend Growth(5Y)0.26%
DP227.39%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-30.1%
Min EPS beat(2)-110.78%
Max EPS beat(2)50.57%
EPS beat(4)2
Avg EPS beat(4)-37.54%
Min EPS beat(4)-110.78%
Max EPS beat(4)50.57%
EPS beat(8)4
Avg EPS beat(8)-18.79%
EPS beat(12)6
Avg EPS beat(12)-17.18%
EPS beat(16)6
Avg EPS beat(16)-72.42%
Revenue beat(2)1
Avg Revenue beat(2)-12.58%
Min Revenue beat(2)-26.28%
Max Revenue beat(2)1.12%
Revenue beat(4)2
Avg Revenue beat(4)-15.98%
Min Revenue beat(4)-52.49%
Max Revenue beat(4)13.74%
Revenue beat(8)2
Avg Revenue beat(8)-15.75%
Revenue beat(12)4
Avg Revenue beat(12)2.82%
Revenue beat(16)6
Avg Revenue beat(16)10.02%
PT rev (1m)0.63%
PT rev (3m)1.27%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)7.82%
EPS NY rev (1m)9.63%
EPS NY rev (3m)20.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 7.57 | ||
| P/S | 0.97 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.91
EY7.26%
EPS(NY)1.66
Fwd EY13.21%
FCF(TTM)-63.53
FCFYN/A
OCF(TTM)-63.53
OCFYN/A
SpS12.92
BVpS21.6
TBVpS-20.56
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 4.24% | ||
| ROCE | 1.08% | ||
| ROIC | 0.51% | ||
| ROICexc | 0.51% | ||
| ROICexgc | 0.66% | ||
| OM | 10.03% | ||
| PM (TTM) | 7.09% | ||
| GM | 17.95% | ||
| 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%
ROICexgc growth 3Y52.36%
ROICexgc 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-Score1
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.66 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.15 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | -0.42 |
F-Score1
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)-33.09%
EPS 3Y72.3%
EPS 5Y-11.43%
EPS Q2Q%52.78%
EPS Next Y-32.29%
EPS Next 2Y11.6%
EPS Next 3Y8.31%
EPS Next 5YN/A
Revenue 1Y (TTM)9.82%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%22.71%
Revenue Next Year-4.73%
Revenue Next 2Y11.15%
Revenue Next 3Y10.12%
Revenue Next 5YN/A
EBIT growth 1Y-11.75%
EBIT growth 3Y47.27%
EBIT growth 5Y-5.63%
EBIT Next Year551.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-520.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-520.02%
OCF growth 3YN/A
OCF growth 5YN/A
PENNYMAC MORTGAGE INVESTMENT / PMT FAQ
What is the ChartMill fundamental rating of PENNYMAC MORTGAGE INVESTMENT (PMT) stock?
ChartMill assigns a fundamental rating of 3 / 10 to PMT.
What is the valuation status of PENNYMAC MORTGAGE INVESTMENT (PMT) stock?
ChartMill assigns a valuation rating of 3 / 10 to PENNYMAC MORTGAGE INVESTMENT (PMT). This can be considered as Overvalued.
How profitable is PENNYMAC MORTGAGE INVESTMENT (PMT) stock?
PENNYMAC MORTGAGE INVESTMENT (PMT) has a profitability rating of 3 / 10.
What is the valuation of PENNYMAC MORTGAGE INVESTMENT based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PENNYMAC MORTGAGE INVESTMENT (PMT) is 13.77 and the Price/Book (PB) ratio is 0.58.
How sustainable is the dividend of PENNYMAC MORTGAGE INVESTMENT (PMT) stock?
The dividend rating of PENNYMAC MORTGAGE INVESTMENT (PMT) is 5 / 10 and the dividend payout ratio is 227.39%.