PENNYMAC MORTGAGE INVESTMENT (PMT) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:PMT • US70931T1034

11.83 USD
-1.68 (-12.44%)
At close: Jan 30, 2026
11.87 USD
+0.04 (+0.34%)
After Hours: 1/30/2026, 8:13:29 PM
Fundamental Rating

3

Taking everything into account, PMT scores 3 out of 10 in our fundamental rating. PMT was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. PMT may be in some trouble as it scores bad on both profitability and health. PMT has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

2

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.
  • In multiple years PMT reported negative net income over the last 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: PMT reported negative operating cash flow in multiple years.
PMT Yearly Net Income VS EBIT VS OCF VS FCFPMT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B -2B

1.2 Ratios

  • PMT has a Return On Assets of 0.43%. This is comparable to the rest of the industry: PMT outperforms 54.41% of its industry peers.
  • Looking at the Return On Equity, with a value of 4.24%, PMT is in line with its industry, outperforming 55.88% of the companies in the same industry.
  • PMT's Return On Invested Capital of 0.51% is in line compared to the rest of the industry. PMT outperforms 51.47% of its industry peers.
  • 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 RankSector 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%
PMT Yearly ROA, ROE, ROICPMT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5

1.3 Margins

  • With a Profit Margin value of 7.09%, PMT perfoms like the industry average, outperforming 57.35% of the companies in the same industry.
  • In the last couple of years the Profit Margin of PMT has declined.
  • Looking at the Operating Margin, with a value of 10.03%, PMT is in line with its industry, outperforming 52.94% of the companies in the same industry.
  • 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: 67.65% of the companies in the same industry are doing better.
  • In the last couple of years the Gross Margin of PMT has declined.
Industry RankSector 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%
PMT Yearly Profit, Operating, Gross MarginsPMT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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1

2. Health

2.1 Basic Checks

  • There is no outstanding debt for PMT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
PMT Yearly Shares OutstandingPMT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
PMT Yearly Total Debt VS Total AssetsPMT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

  • PMT has an Altman-Z score of -0.42. This is a bad value and indicates that PMT is not financially healthy and even has some risk of bankruptcy.
  • PMT has a Altman-Z score (-0.42) which is in line with its industry peers.
  • PMT has a Debt/Equity ratio of 8.66. This is a high value indicating a heavy dependency on external financing.
  • PMT has a Debt to Equity ratio of 8.66. This is amonst the worse of the industry: PMT underperforms 83.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 8.66
Debt/FCF N/A
Altman-Z -0.42
ROIC/WACCN/A
WACCN/A
PMT Yearly LT Debt VS Equity VS FCFPMT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B

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.
  • Looking at the Current ratio, with a value of 0.04, PMT is doing worse than 79.41% of the companies in the same industry.
  • A Quick Ratio of 0.04 indicates that PMT may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.04, PMT is doing worse than 79.41% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.04
Quick Ratio 0.04
PMT Yearly Current Assets VS Current LiabilitesPMT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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4

3. Growth

3.1 Past

  • The earnings per share for PMT have decreased strongly by -26.32% in the last year.
  • Measured over the past years, PMT shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.50% on average per year.
EPS 1Y (TTM)-26.32%
EPS 3YN/A
EPS 5Y32.5%
EPS Q2Q%17.07%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.31%

3.2 Future

  • The Earnings Per Share is expected to grow by 32.56% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, PMT will show a quite strong growth in Revenue. The Revenue will grow by 18.39% on average per year.
EPS Next Y70.05%
EPS Next 2Y32.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year29.66%
Revenue Next 2Y18.39%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
PMT Yearly Revenue VS EstimatesPMT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
PMT Yearly EPS VS EstimatesPMT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1 2

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6

4. Valuation

4.1 Price/Earnings Ratio

  • PMT is valuated correctly with a Price/Earnings ratio of 12.07.
  • Based on the Price/Earnings ratio, PMT is valued a bit cheaper than the industry average as 60.29% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 28.30, PMT is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 7.10, the valuation of PMT can be described as very cheap.
  • 72.06% of the companies in the same industry are more expensive than PMT, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. PMT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.07
Fwd PE 7.1
PMT Price Earnings VS Forward Price EarningsPMT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
PMT Per share dataPMT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 -40 -60

4.3 Compensation for Growth

  • PMT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as PMT's earnings are expected to grow with 32.56% in the coming years.
PEG (NY)0.17
PEG (5Y)0.37
EPS Next 2Y32.56%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

  • PMT has a Yearly Dividend Yield of 8.36%, which is a nice return.
  • With a Dividend Yield of 8.36, PMT pays less dividend than the industry average, which is at 11.37. 85.29% of the companies listed in the same industry pay a better dividend than PMT!
  • PMT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 8.36%

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
PMT Yearly Dividends per sharePMT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • 227.39% of the earnings are spent on dividend by PMT. This is not a sustainable payout ratio.
  • The dividend of PMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP227.39%
EPS Next 2Y32.56%
EPS Next 3YN/A
PMT Yearly Income VS Free CF VS DividendPMT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B -2B
PMT Dividend Payout.PMT Dividend Payout, showing the Payout Ratio.PMT Dividend Payout.PayoutRetained Earnings

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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.


Can you provide the valuation status for PENNYMAC MORTGAGE INVESTMENT?

ChartMill assigns a valuation rating of 6 / 10 to PENNYMAC MORTGAGE INVESTMENT (PMT). This can be considered as Fairly Valued.


How profitable is PENNYMAC MORTGAGE INVESTMENT (PMT) stock?

PENNYMAC MORTGAGE INVESTMENT (PMT) has a profitability rating of 2 / 10.


What is the expected EPS growth for PENNYMAC MORTGAGE INVESTMENT (PMT) stock?

The Earnings per Share (EPS) of PENNYMAC MORTGAGE INVESTMENT (PMT) is expected to grow by 70.05% in the next year.


Is the dividend of PENNYMAC MORTGAGE INVESTMENT sustainable?

The dividend rating of PENNYMAC MORTGAGE INVESTMENT (PMT) is 5 / 10 and the dividend payout ratio is 227.39%.