PENNYMAC MORTGAGE INVESTMENT (PMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PMT - US70931T1034 - REIT
13.81 USD
+0.34 (+2.52%)
13.7188 USD
-0.09 (-0.66%)
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 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year PMT was profitable.
- PMT had a negative operating cash flow in the past year.
- Of the past 5 years PMT 4 years were profitable.
- In multiple years PMT reported negative operating cash flow during the last 5 years.
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.
- PMT has a Return On Equity (4.24%) which is in line with its industry peers.
- The Return On Invested Capital of PMT (0.51%) is comparable to the rest of the industry.
- 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 | 0.43% | ||
| 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.
- PMT's Profit Margin has declined in the last couple of years.
- The Operating Margin of PMT (10.03%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of PMT has declined.
- PMT has a worse Gross Margin (17.95%) than 67.65% of its industry peers.
- PMT's Gross Margin has declined in the last couple of years.
| 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
- 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 -0.42, we must say that PMT is in the distress zone and has some risk of bankruptcy.
- PMT has a Altman-Z score of -0.42. This is comparable to the rest of the industry: PMT outperforms 41.18% of its industry peers.
- A Debt/Equity ratio of 8.66 is on the high side and indicates that PMT has dependencies on debt 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 | -0.42 |
ROIC/WACCN/A
WACCN/A
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.
- PMT has a Current ratio of 0.04. This is in the lower half of the industry: PMT underperforms 79.41% of its industry peers.
- A Quick Ratio of 0.04 indicates that PMT may have some problems paying its short term obligations.
- PMT has a worse Quick ratio (0.04) than 79.41% 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%.
- 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.
- Looking at the last year, PMT shows a quite strong growth in Revenue. The Revenue has grown by 9.82% in the last 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)-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
- The Earnings Per Share is expected to grow by 8.99% on average over the next years. This is quite good.
- The Revenue is expected to grow by 10.12% on average over the next years. This is quite good.
EPS Next Y-32.41%
EPS Next 2Y11.94%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue Next Year-4.73%
Revenue Next 2Y11.15%
Revenue Next 3Y10.12%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 15.18, the valuation of PMT can be described as correct.
- 61.76% of the companies in the same industry are more expensive than PMT, based on the Price/Earnings ratio.
- PMT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 8.29, the valuation of PMT can be described as very reasonable.
- PMT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PMT is cheaper than 70.59% of the companies in the same industry.
- PMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 8.29 |
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 2Y11.94%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 12.54%, PMT is a good candidate for dividend investing.
- PMT's Dividend Yield is a higher than the industry average which is at 10.90.
- Compared to an average S&P500 Dividend Yield of 1.92, PMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.54% |
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.
- PMT has decreased its dividend 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 2Y11.94%
EPS Next 3Y8.99%
13.81
+0.34 (+2.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)01-29 2026-01-29/amc
Inst Owners70.61%
Inst Owner Change0.85%
Ins Owners0.96%
Ins Owner Change0.66%
Market Cap1.20B
Revenue(TTM)1.12B
Net Income(TTM)79.68M
Analysts69.23
Price Target13.52 (-2.1%)
Short Float %5.44%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.54% |
Yearly Dividend2.09
Dividend Growth(5Y)0.26%
DP227.39%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
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%
PT rev (3m)1.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.82%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)30.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 8.29 | ||
| P/S | 1.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.91
EY6.59%
EPS(NY)1.67
Fwd EY12.07%
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 | -0.42 |
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-32.41%
EPS Next 2Y11.94%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue 1Y (TTM)9.82%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%22.71%
Revenue Next Year-4.73%
Revenue Next 2Y11.15%
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.
Can you provide the valuation status for PENNYMAC MORTGAGE INVESTMENT?
ChartMill assigns a valuation rating of 3 / 10 to PENNYMAC MORTGAGE INVESTMENT (PMT). This can be considered as Overvalued.
How profitable is PENNYMAC MORTGAGE INVESTMENT (PMT) stock?
PENNYMAC MORTGAGE INVESTMENT (PMT) has a profitability rating of 3 / 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 decline by -32.41% in the next year.
Is the dividend of PENNYMAC MORTGAGE INVESTMENT sustainable?
The dividend rating of PENNYMAC MORTGAGE INVESTMENT (PMT) is 6 / 10 and the dividend payout ratio is 227.39%.