PENNYMAC MORTGAGE INVESTMENT (PMT) Stock Fundamental Analysis
NYSE:PMT - New York Stock Exchange, Inc. - US70931T1034 - REIT - Currency: USD
Taking everything into account, PMT scores 3 out of 10 in our fundamental rating. PMT was compared to 66 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 valued expensive and it does not seem to be growing.
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 (0.54%) is better than 66.67% of its industry peers.
With a decent Return On Equity value of 4.25%, PMT is doing good in the industry, outperforming 62.12% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.58%, PMT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PMT is in line with the industry average of 1.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 4.25% | ||
| ROIC | 0.58% |
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
With a Profit Margin value of 7.86%, PMT perfoms like the industry average, outperforming 51.52% 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 10.10%, PMT is in line with its industry, outperforming 48.48% of the companies in the same industry.
In the last couple of years the Operating Margin of PMT has declined.
The Gross Margin of PMT (17.60%) 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 | 10.1% | ||
| PM (TTM) | 7.86% | ||
| GM | 17.6% |
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.
The number of shares outstanding for PMT has been reduced compared to 5 years ago.
Compared to 1 year ago, PMT has a worse debt to assets ratio.
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.
With a Altman-Z score value of -0.41, PMT is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
A Debt/Equity ratio of 6.64 is on the high side and indicates that PMT has dependencies on debt financing.
PMT's Debt to Equity ratio of 6.64 is on the low side compared to the rest of the industry. PMT is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.41 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PMT has a Current Ratio of 0.05. 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 has a worse Current ratio (0.05) than 77.27% of its industry peers.
PMT has a Quick Ratio of 0.05. 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 0.05 is on the low side compared to the rest of the industry. PMT is outperformed by 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The earnings per share for PMT have decreased strongly by -38.00% in the last year.
PMT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.43% yearly.
The Revenue for PMT has decreased by -27.01% in the past year. This is quite bad
The Revenue has been growing slightly by 5.93% on average over the past years.
EPS 1Y (TTM)-38%
EPS 3Y72.3%
EPS 5Y-11.43%
EPS Q2Q%-102.56%
Revenue 1Y (TTM)-27.01%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%-40.08%
3.2 Future
The Earnings Per Share is expected to grow by 7.26% on average over the next years.
The Revenue is expected to grow by 6.72% on average over the next years.
EPS Next Y-5.93%
EPS Next 2Y9.44%
EPS Next 3Y7.26%
EPS Next 5YN/A
Revenue Next Year4.13%
Revenue Next 2Y9.76%
Revenue Next 3Y6.72%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.23 indicates a correct valuation of PMT.
PMT's Price/Earnings ratio is in line with the industry average.
PMT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.31, which indicates a very decent valuation of PMT.
PMT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PMT is cheaper than 68.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PMT to the average of the S&P500 Index (21.90), we can say PMT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 8.31 |
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 2Y9.44%
EPS Next 3Y7.26%
5. Dividend
5.1 Amount
PMT has a Yearly Dividend Yield of 8.84%, which is a nice return.
Compared to an average industry Dividend Yield of 11.54, PMT is paying slightly less dividend.
PMT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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
224.01% 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.
DP224.01%
EPS Next 2Y9.44%
EPS Next 3Y7.26%
13.23
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners72.31%
Inst Owner Change5.01%
Ins Owners0.94%
Ins Owner Change6.72%
Market Cap1.15B
Analysts69.23
Price Target14.13 (6.8%)
Short Float %4.81%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
Yearly Dividend2.09
Dividend Growth(5Y)0.26%
DP224.01%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-44.98%
Min EPS beat(2)-102.55%
Max EPS beat(2)12.58%
EPS beat(4)1
Avg EPS beat(4)-35.93%
Min EPS beat(4)-102.55%
Max EPS beat(4)12.58%
EPS beat(8)4
Avg EPS beat(8)-9.52%
EPS beat(12)5
Avg EPS beat(12)-60.21%
EPS beat(16)5
Avg EPS beat(16)-83.65%
Revenue beat(2)1
Avg Revenue beat(2)-19.37%
Min Revenue beat(2)-52.49%
Max Revenue beat(2)13.74%
Revenue beat(4)1
Avg Revenue beat(4)-18.35%
Min Revenue beat(4)-52.49%
Max Revenue beat(4)13.74%
Revenue beat(8)2
Avg Revenue beat(8)-3.57%
Revenue beat(12)4
Avg Revenue beat(12)14.25%
Revenue beat(16)6
Avg Revenue beat(16)20.85%
PT rev (1m)0%
PT rev (3m)-3.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)3.6%
EPS NY rev (3m)-22.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 8.31 | ||
| P/S | 1.12 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.93
EY7.03%
EPS(NY)1.59
Fwd EY12.04%
FCF(TTM)-33.96
FCFYN/A
OCF(TTM)-33.96
OCFYN/A
SpS11.83
BVpS21.87
TBVpS-21.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 4.25% | ||
| ROCE | 1.24% | ||
| ROIC | 0.58% | ||
| ROICexc | 0.59% | ||
| ROICexgc | 0.82% | ||
| OM | 10.1% | ||
| PM (TTM) | 7.86% | ||
| GM | 17.6% | ||
| 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.14 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| 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)-38%
EPS 3Y72.3%
EPS 5Y-11.43%
EPS Q2Q%-102.56%
EPS Next Y-5.93%
EPS Next 2Y9.44%
EPS Next 3Y7.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-27.01%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%-40.08%
Revenue Next Year4.13%
Revenue Next 2Y9.76%
Revenue Next 3Y6.72%
Revenue Next 5YN/A
EBIT growth 1Y-62.44%
EBIT growth 3Y47.27%
EBIT growth 5Y-5.63%
EBIT Next Year551.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-138.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-138.53%
OCF growth 3YN/A
OCF growth 5YN/A