PENNYMAC MORTGAGE INVESTMENT (PMT) Stock Fundamental Analysis
USA - NYSE:PMT - US70931T1034 - REIT
12.67 USD
+0.3 (+2.43%)
12.67 USD
0 (0%)
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. Both the profitability and financial health of PMT have multiple concerns. PMT has a decent growth rate and is not valued too expensively.
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.
In multiple years PMT reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of PMT (0.43%) is comparable to the rest of the industry.
PMT has a Return On Equity of 4.24%. This is comparable to the rest of the industry: PMT outperforms 54.41% of its industry peers.
PMT has a Return On Invested Capital of 0.51%. This is comparable to the rest of the industry: PMT outperforms 51.47% 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 1.23%.
| 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's Operating Margin of 10.03% is in line compared to the rest of the industry. PMT outperforms 52.94% of its industry peers.
PMT's Operating Margin has declined in the last couple of years.
PMT has a worse Gross Margin (17.95%) than 67.65% of its industry peers.
In the last couple of years the Gross Margin of PMT has declined.
| 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
PMT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PMT has less shares outstanding
The debt/assets ratio for PMT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.43, we must say that PMT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PMT (-0.43) is comparable to the rest of the industry.
PMT has a Debt/Equity ratio of 8.66. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 8.66, PMT is not doing good in the industry: 83.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.43 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.04 indicates that PMT may have some problems paying its short term obligations.
The Current ratio of PMT (0.04) is worse than 77.94% 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.
The Quick ratio of PMT (0.04) is worse than 77.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
PMT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.09%.
PMT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.43% yearly.
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 8.03% on average per year.
PMT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.12% yearly.
EPS Next Y-38.24%
EPS Next 2Y11.51%
EPS Next 3Y8.03%
EPS Next 5YN/A
Revenue Next Year-5.61%
Revenue Next 2Y10.73%
Revenue Next 3Y10.12%
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
With a Price/Earnings ratio of 13.92, PMT is valued correctly.
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.
The average S&P500 Price/Earnings ratio is at 25.07. PMT is valued slightly cheaper when compared to this.
PMT is valuated cheaply with a Price/Forward Earnings ratio of 7.66.
Based on the Price/Forward Earnings ratio, PMT is valued a bit cheaper than the industry average as 72.06% of the companies are valued more expensively.
PMT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 7.66 |
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 2Y11.51%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
PMT has a Yearly Dividend Yield of 12.89%, which is a nice return.
PMT's Dividend Yield is comparable with the industry average which is at 12.03.
Compared to an average S&P500 Dividend Yield of 2.44, PMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.89% |
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.
The dividend of PMT decreased recently.
Dividend Growth(5Y)0.26%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
PMT pays out 227.39% 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.
DP227.39%
EPS Next 2Y11.51%
EPS Next 3Y8.03%
12.67
+0.3 (+2.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners70.53%
Inst Owner Change-0.64%
Ins Owners0.94%
Ins Owner Change0.47%
Market Cap1.10B
Revenue(TTM)1.12B
Net Income(TTM)79.68M
Analysts67.69
Price Target13.43 (6%)
Short Float %6.1%
Short Ratio6.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.89% |
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)0.64%
PT rev (3m)-1.86%
EPS NQ rev (1m)7.51%
EPS NQ rev (3m)7.03%
EPS NY rev (1m)19.61%
EPS NY rev (3m)-34.34%
Revenue NQ rev (1m)3.02%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-6.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 7.66 | ||
| P/S | 0.98 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.91
EY7.18%
EPS(NY)1.65
Fwd EY13.05%
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 | -0.43 |
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-38.24%
EPS Next 2Y11.51%
EPS Next 3Y8.03%
EPS Next 5YN/A
Revenue 1Y (TTM)9.82%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%22.71%
Revenue Next Year-5.61%
Revenue Next 2Y10.73%
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 4 / 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 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 13.92 and the Price/Book (PB) ratio is 0.59.
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%.