PENNYMAC MORTGAGE INVESTMENT (PMT) Stock Fundamental Analysis
NYSE:PMT - US70931T1034 - REIT
12.31 USD
+0.13 (+1.07%)
12.1806 USD
-0.13 (-1.05%)
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. There are concerns on the financial health of PMT while its profitability can be described as average. PMT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PMT had positive earnings in the past year.
In the past year PMT has reported a negative cash flow from operations.
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
The Return On Assets of PMT (0.37%) is better than 68.66% of its industry peers.
PMT's Return On Equity of 3.37% is fine compared to the rest of the industry. PMT outperforms 64.18% of its industry peers.
PMT has a Return On Invested Capital of 0.46%. This is in the better half of the industry: PMT outperforms 65.67% 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 1.28%.
| 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
PMT has a Profit Margin (5.92%) which is comparable to the rest of the industry.
PMT's Profit Margin has declined in the last couple of years.
PMT has a Operating Margin (8.70%) which is in line with its industry peers.
PMT's Operating Margin has declined in the last couple of years.
PMT has a Gross Margin (16.53%) which is comparable to the rest of the industry.
PMT's Gross Margin has declined in the last couple of years.
| 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
The number of shares outstanding for PMT has been increased compared to 1 year ago.
PMT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PMT is higher compared to a year ago.
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.
A Debt/Equity ratio of 7.80 is on the high side and indicates that PMT has dependencies on debt 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
A Current Ratio of 0.06 indicates that PMT may have some problems paying its short term obligations.
PMT's Current 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.
A Quick Ratio of 0.06 indicates that PMT may have some problems paying its short term obligations.
PMT has a Quick ratio of 0.06. This is in the lower half of the industry: PMT underperforms 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
PMT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.32%.
Measured over the past years, PMT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.43% on average per year.
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
The Earnings Per Share is expected to grow by 6.60% on average over the next years.
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-43.68%
EPS Next 2Y8.96%
EPS Next 3Y6.6%
EPS Next 5YN/A
Revenue Next Year-4.86%
Revenue Next 2Y10.41%
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
The Price/Earnings ratio is 17.10, which indicates a rather expensive current valuation of PMT.
PMT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PMT to the average of the S&P500 Index (27.13), we can say PMT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 7.80, the valuation of PMT can be described as very cheap.
Based on the Price/Forward Earnings ratio, PMT is valued a bit cheaper than 74.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, PMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 7.8 |
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 13.14%, PMT is a good candidate for dividend investing.
PMT's Dividend Yield is a higher than the industry average which is at 11.93.
Compared to an average S&P500 Dividend Yield of 2.32, PMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.14% |
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.
PMT has decreased its dividend 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.
The dividend of PMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP288.01%
EPS Next 2Y8.96%
EPS Next 3Y6.6%
12.31
+0.13 (+1.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners72.29%
Inst Owner Change-3.02%
Ins Owners0.94%
Ins Owner Change-0.92%
Market Cap1.07B
Analysts67.69
Price Target13.35 (8.45%)
Short Float %4.82%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.14% |
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)-5.58%
PT rev (3m)-5.58%
EPS NQ rev (1m)0.75%
EPS NQ rev (3m)-10.92%
EPS NY rev (1m)-40.13%
EPS NY rev (3m)-37.97%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)3.72%
Revenue NY rev (1m)-6.04%
Revenue NY rev (3m)-8.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 7.8 | ||
| P/S | 1.01 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.72
EY5.85%
EPS(NY)1.58
Fwd EY12.83%
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-43.68%
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 2Y10.41%
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