Overall PMT gets a fundamental rating of 3 out of 10. We evaluated PMT against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. PMT has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, PMT is valued expensive at the moment.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

PMT had positive earnings in the past year.
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

Looking at the Return On Assets, with a value of 0.43%, PMT is in line with its industry, outperforming 54.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.24%, PMT is in line with its industry, outperforming 55.88% of the companies in the same industry.
PMT's Return On Invested Capital of 0.51% is in line compared 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 1.28%.

		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

PMT has a Profit Margin (7.09%) 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 (10.03%) which is comparable to the rest of the industry.
PMT's Operating Margin has declined in the last couple of years.
The Gross Margin of PMT (17.95%) is worse 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
Compared to 1 year ago, PMT has a worse debt to assets ratio.

2.2 Solvency

PMT has an Altman-Z score of -0.42. This is a bad value and indicates that PMT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.42, PMT perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
PMT has a Debt/Equity ratio of 8.66. This is a high value indicating a heavy dependency on external financing.
PMT has a Debt to Equity ratio of 8.66. This is amonst the worse of the industry: PMT underperforms 83.82% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	8.66
Debt/FCF	N/A
Altman-Z	-0.42

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.
With a Current ratio value of 0.04, PMT is not doing good in the industry: 79.41% of the companies in the same industry are doing better.
A Quick Ratio of 0.04 indicates that PMT may have some problems paying its short term obligations.
The Quick ratio of PMT (0.04) is worse than 79.41% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.04
Quick Ratio	0.04

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for PMT have decreased strongly by -33.09% 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 has grown by 9.82% in the past year. This is quite good.
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

PMT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.99% yearly.
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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.81, which indicates a correct valuation of PMT.
Based on the Price/Earnings ratio, PMT is valued a bit cheaper than 61.76% of the companies in the same industry.
When comparing the Price/Earnings ratio of PMT to the average of the S&P500 Index (28.82), we can say PMT is valued slightly cheaper.
PMT is valuated reasonably with a Price/Forward Earnings ratio of 8.09.
Based on the Price/Forward Earnings ratio, PMT is valued a bit cheaper than 70.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.95. PMT is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	14.81
Fwd PE	8.09

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%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 12.08%, PMT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.26, PMT pays a bit more dividend than its industry peers.
PMT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	12.08%

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

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%

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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 5 / 10 and the dividend payout ratio is 227.39%.