PENNYMAC FINANCIAL SERVICES (PFSI)
US70932M1071 - Common Stock
Taking everything into account, PFSI scores 3 out of 10 in our fundamental rating. PFSI was compared to 99 industry peers in the Financial Services industry. PFSI may be in some trouble as it scores bad on both profitability and health. PFSI is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year PFSI was profitable.
In the past year PFSI has reported a negative cash flow from operations.
Each year in the past 5 years PFSI has been profitable.
The reported operating cash flow has been mixed in the past 5 years: PFSI reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.74%, PFSI is doing worse than 63.64% of the companies in the same industry.
PFSI has a worse Return On Equity (4.55%) than 60.61% of its industry peers.
PFSI has a Return On Invested Capital (1.34%) which is in line with its industry peers.
PFSI had an Average Return On Invested Capital over the past 3 years of 3.56%. This is below the industry average of 7.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 4.55% | ||
| ROIC | 1.34% |
ROA(3y)2.98%
ROA(5y)3.6%
ROE(3y)15.72%
ROE(5y)22.96%
ROIC(3y)3.56%
ROIC(5y)4.1%
1.3 Margins
The Profit Margin of PFSI (7.57%) is worse than 60.61% of its industry peers.
In the last couple of years the Profit Margin of PFSI has declined.
The Operating Margin of PFSI (16.99%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PFSI has declined.
With a decent Gross Margin value of 66.10%, PFSI is doing good in the industry, outperforming 78.79% of the companies in the same industry.
PFSI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.99% | ||
| PM (TTM) | 7.57% | ||
| GM | 66.1% |
OM growth 3Y-33.08%
OM growth 5Y-6.45%
PM growth 3Y-44.46%
PM growth 5Y-1.8%
GM growth 3Y-9.65%
GM growth 5Y-4.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PFSI is destroying value.
PFSI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PFSI has less shares outstanding
PFSI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.10, we must say that PFSI is in the distress zone and has some risk of bankruptcy.
PFSI has a worse Altman-Z score (0.10) than 65.66% of its industry peers.
PFSI has a Debt/Equity ratio of 3.21. This is a high value indicating a heavy dependency on external financing.
PFSI has a Debt to Equity ratio of 3.21. This is in the lower half of the industry: PFSI underperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.1 |
ROIC/WACC0.15
WACC8.72%
2.3 Liquidity
A Current Ratio of 0.03 indicates that PFSI may have some problems paying its short term obligations.
PFSI's Current ratio of 0.03 is on the low side compared to the rest of the industry. PFSI is outperformed by 83.84% of its industry peers.
A Quick Ratio of 0.03 indicates that PFSI may have some problems paying its short term obligations.
PFSI has a Quick ratio of 0.03. This is amonst the worse of the industry: PFSI underperforms 83.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.55% over the past year.
The Earnings Per Share has been growing slightly by 1.07% on average over the past years.
Looking at the last year, PFSI shows a quite strong growth in Revenue. The Revenue has grown by 15.16% in the last year.
The Revenue has been growing by 12.55% on average over the past years. This is quite good.
EPS 1Y (TTM)17.55%
EPS 3Y-49.56%
EPS 5Y1.07%
EPS Q2Q%-26.55%
Revenue 1Y (TTM)15.16%
Revenue growth 3Y-19.96%
Revenue growth 5Y12.55%
Sales Q2Q%2.88%
3.2 Future
The Earnings Per Share is expected to grow by 81.76% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 22.52% on average over the next years. This is a very strong growth
EPS Next Y169.87%
EPS Next 2Y129.62%
EPS Next 3Y81.76%
EPS Next 5YN/A
Revenue Next Year17.69%
Revenue Next 2Y28.07%
Revenue Next 3Y22.52%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.79, PFSI is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as PFSI.
The average S&P500 Price/Earnings ratio is at 27.73. PFSI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 7.11, the valuation of PFSI can be described as very cheap.
81.82% of the companies in the same industry are more expensive than PFSI, based on the Price/Forward Earnings ratio.
PFSI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 7.11 |
4.2 Price Multiples
PFSI's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.54 |
4.3 Compensation for Growth
PFSI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PFSI's earnings are expected to grow with 81.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)19.49
EPS Next 2Y129.62%
EPS Next 3Y81.76%
5. Dividend
5.1 Amount
PFSI has a Yearly Dividend Yield of 1.20%.
Compared to an average industry Dividend Yield of 3.61, PFSI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, PFSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
The dividend of PFSI is nicely growing with an annual growth rate of 32.84%!
PFSI has been paying a dividend for over 5 years, so it has already some track record.
PFSI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)32.84%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
27.48% of the earnings are spent on dividend by PFSI. This is a low number and sustainable payout ratio.
PFSI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.48%
EPS Next 2Y129.62%
EPS Next 3Y81.76%
PENNYMAC FINANCIAL SERVICES
NYSE:PFSI (12/20/2024, 8:04:00 PM)
After market: 101.66 0 (0%)101.66
+1.56 (+1.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners58.82%
Inst Owner Change4.32%
Ins Owners5.34%
Ins Owner Change-0.07%
Market Cap5.21B
Analysts81.25
Price Target126.82 (24.75%)
Short Float %2.89%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Dividend Growth(5Y)32.84%
DP27.48%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-42.86%
Min EPS beat(2)-56.05%
Max EPS beat(2)-29.68%
EPS beat(4)1
Avg EPS beat(4)-57.24%
Min EPS beat(4)-148.58%
Max EPS beat(4)5.33%
EPS beat(8)2
Avg EPS beat(8)-41.9%
EPS beat(12)5
Avg EPS beat(12)-10.4%
EPS beat(16)6
Avg EPS beat(16)-8.86%
Revenue beat(2)0
Avg Revenue beat(2)-17.86%
Min Revenue beat(2)-21.05%
Max Revenue beat(2)-14.66%
Revenue beat(4)0
Avg Revenue beat(4)-20.04%
Min Revenue beat(4)-30.7%
Max Revenue beat(4)-13.76%
Revenue beat(8)1
Avg Revenue beat(8)-11.1%
Revenue beat(12)5
Avg Revenue beat(12)-1.76%
Revenue beat(16)9
Avg Revenue beat(16)0%
PT rev (1m)1.73%
PT rev (3m)9.38%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)15.16%
EPS NY rev (1m)2.95%
EPS NY rev (3m)-12.09%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)7.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 7.11 | ||
| P/S | 2.32 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.54 |
EPS(TTM)4.89
EY4.81%
EPS(NY)14.29
Fwd EY14.06%
FCF(TTM)-38.56
FCFYN/A
OCF(TTM)-38.12
OCFYN/A
SpS43.84
BVpS72.95
TBVpS-78.29
PEG (NY)0.12
PEG (5Y)19.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 4.55% | ||
| ROCE | 2.69% | ||
| ROIC | 1.34% | ||
| ROICexc | 1.35% | ||
| ROICexgc | 4.23% | ||
| OM | 16.99% | ||
| PM (TTM) | 7.57% | ||
| GM | 66.1% | ||
| FCFM | N/A |
ROA(3y)2.98%
ROA(5y)3.6%
ROE(3y)15.72%
ROE(5y)22.96%
ROIC(3y)3.56%
ROIC(5y)4.1%
ROICexc(3y)3.73%
ROICexc(5y)4.25%
ROICexgc(3y)15.14%
ROICexgc(5y)14.14%
ROCE(3y)7.48%
ROCE(5y)8.98%
ROICexcg growth 3Y-16.13%
ROICexcg growth 5Y-1.32%
ROICexc growth 3Y-34.29%
ROICexc growth 5Y-11.95%
OM growth 3Y-33.08%
OM growth 5Y-6.45%
PM growth 3Y-44.46%
PM growth 5Y-1.8%
GM growth 3Y-9.65%
GM growth 5Y-4.65%
F-Score2
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 27.41 | ||
| Cap/Depr | 39.34% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 0.51 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 | ||
| Altman-Z | 0.1 |
F-Score2
WACC8.72%
ROIC/WACC0.15
Cap/Depr(3y)169.5%
Cap/Depr(5y)518.15%
Cap/Sales(3y)2.32%
Cap/Sales(5y)4.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.55%
EPS 3Y-49.56%
EPS 5Y1.07%
EPS Q2Q%-26.55%
EPS Next Y169.87%
EPS Next 2Y129.62%
EPS Next 3Y81.76%
EPS Next 5YN/A
Revenue 1Y (TTM)15.16%
Revenue growth 3Y-19.96%
Revenue growth 5Y12.55%
Sales Q2Q%2.88%
Revenue Next Year17.69%
Revenue Next 2Y28.07%
Revenue Next 3Y22.52%
Revenue Next 5YN/A
EBIT growth 1Y24.95%
EBIT growth 3Y-46.43%
EBIT growth 5Y5.3%
EBIT Next Year110.25%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-137.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-136.62%
OCF growth 3YN/A
OCF growth 5YN/A