PENNYMAC MORTGAGE INVESTMENT (PMT) Stock Fundamental Analysis
USA - NYSE:PMT - US70931T1034 - REIT
12.1 USD
-0.09 (-0.74%)
12.1018 USD
+0 (+0.01%)
We assign a fundamental rating of 3 out of 10 to PMT. PMT was compared to 62 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. While showing a medium growth rate, PMT is valued expensive at the moment.
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.
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 (0.37%) is better than 66.13% of its industry peers.
Looking at the Return On Equity, with a value of 3.37%, PMT is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
PMT has a Return On Invested Capital of 0.46%. This is in the better half of the industry: PMT outperforms 62.90% 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 1.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 3.37% | ||
| ROIC | 0.46% |
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
PMT has a Profit Margin (5.92%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PMT has declined.
PMT has a Operating Margin (8.70%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PMT has declined.
PMT's Gross Margin of 16.53% is in line compared to the rest of the industry. PMT outperforms 54.84% of its industry peers.
In the last couple of years the Gross Margin of PMT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.7% | ||
| PM (TTM) | 5.92% | ||
| GM | 16.53% |
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.
The number of shares outstanding for PMT has been reduced compared to 5 years ago.
PMT has a worse debt/assets ratio than last year.
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: 66.13% of the companies in the same industry are doing better.
PMT has a Debt/Equity ratio of 7.80. This is a high value indicating a heavy dependency on external financing.
PMT has a worse Debt to Equity ratio (7.80) than 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.41 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PMT has a Current Ratio of 0.06. 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 0.06, PMT is doing worse than 69.35% of the companies in the same industry.
A Quick Ratio of 0.06 indicates that PMT may have some problems paying its short term obligations.
PMT's Quick ratio of 0.06 is on the low side compared to the rest of the industry. PMT is outperformed by 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
PMT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.32%.
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.
The Revenue has decreased by -4.01% in the past year.
PMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.93% yearly.
EPS 1Y (TTM)-52.32%
EPS 3Y72.3%
EPS 5Y-11.43%
EPS Q2Q%-123.53%
Revenue 1Y (TTM)-4.01%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%-1.4%
3.2 Future
PMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.60% yearly.
The Revenue is expected to grow by 11.60% on average over the next years. This is quite good.
EPS Next Y-43.68%
EPS Next 2Y8.96%
EPS Next 3Y6.6%
EPS Next 5YN/A
Revenue Next Year-4.86%
Revenue Next 2Y10.3%
Revenue Next 3Y11.6%
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
The Price/Earnings ratio is 16.81, which indicates a correct valuation of PMT.
PMT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.38, PMT is valued a bit cheaper.
PMT is valuated cheaply with a Price/Forward Earnings ratio of 7.66.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PMT indicates a somewhat cheap valuation: PMT is cheaper than 72.58% of the companies listed in the same industry.
PMT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| 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 2Y8.96%
EPS Next 3Y6.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.27%, PMT is a good candidate for dividend investing.
With a Dividend Yield of 8.27, PMT pays less dividend than the industry average, which is at 11.50. 91.94% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.27% |
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
288.01% 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.
DP288.01%
EPS Next 2Y8.96%
EPS Next 3Y6.6%
12.1
-0.09 (-0.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners72.29%
Inst Owner Change-3.02%
Ins Owners0.94%
Ins Owner Change0.24%
Market Cap1.05B
Analysts67.69
Price Target13.35 (10.33%)
Short Float %4.96%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.27% |
Yearly Dividend2.09
Dividend Growth(5Y)0.26%
DP288.01%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-106.66%
Min EPS beat(2)-110.78%
Max EPS beat(2)-102.55%
EPS beat(4)1
Avg EPS beat(4)-50.49%
Min EPS beat(4)-110.78%
Max EPS beat(4)12.58%
EPS beat(8)4
Avg EPS beat(8)-16.6%
EPS beat(12)5
Avg EPS beat(12)-29.4%
EPS beat(16)5
Avg EPS beat(16)-87.62%
Revenue beat(2)0
Avg Revenue beat(2)-39.38%
Min Revenue beat(2)-52.49%
Max Revenue beat(2)-26.28%
Revenue beat(4)1
Avg Revenue beat(4)-19.24%
Min Revenue beat(4)-52.49%
Max Revenue beat(4)13.74%
Revenue beat(8)2
Avg Revenue beat(8)-4.7%
Revenue beat(12)4
Avg Revenue beat(12)13.05%
Revenue beat(16)5
Avg Revenue beat(16)8.58%
PT rev (1m)-2.48%
PT rev (3m)-5.58%
EPS NQ rev (1m)1.4%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)-40.13%
EPS NY rev (3m)-37.97%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)-6.04%
Revenue NY rev (3m)-8.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 7.66 | ||
| P/S | 0.99 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.72
EY5.95%
EPS(NY)1.58
Fwd EY13.05%
FCF(TTM)-59.92
FCFYN/A
OCF(TTM)-59.92
OCFYN/A
SpS12.2
BVpS21.44
TBVpS-21.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 3.37% | ||
| ROCE | 0.96% | ||
| ROIC | 0.46% | ||
| ROICexc | 0.47% | ||
| ROICexgc | 0.63% | ||
| OM | 8.7% | ||
| PM (TTM) | 5.92% | ||
| GM | 16.53% | ||
| 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 Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.13 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| 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)-52.32%
EPS 3Y72.3%
EPS 5Y-11.43%
EPS Q2Q%-123.53%
EPS Next Y-43.68%
EPS Next 2Y8.96%
EPS Next 3Y6.6%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.01%
Revenue growth 3Y13.1%
Revenue growth 5Y5.93%
Sales Q2Q%-1.4%
Revenue Next Year-4.86%
Revenue Next 2Y10.3%
Revenue Next 3Y11.6%
Revenue Next 5YN/A
EBIT growth 1Y-57.96%
EBIT growth 3Y47.27%
EBIT growth 5Y-5.63%
EBIT Next Year551.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-713.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-713.11%
OCF growth 3YN/A
OCF growth 5YN/A