PennyMac Financial Services
Market Cap
US$1.6b
Last Updated
2020/04/07 04:41 UTC
Data Sources
Company Financials +
Executive Summary
PennyMac Financial Services, Inc., through its subsidiaries, engages in the mortgage banking and investment management activities in the United States.
Snowflake Analysis
Undervalued with proven track record.
Similar Companies
Share Price & News
How has PennyMac Financial Services's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PFSI's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-9.7%
PFSI
-13.0%
US Mortgage
-2.6%
US Market
1 Year Return
-11.4%
PFSI
-36.4%
US Mortgage
-13.3%
US Market
Return vs Industry: PFSI exceeded the US Mortgage industry which returned -33.4% over the past year.
Return vs Market: PFSI underperformed the US Market which returned -14.9% over the past year.
Shareholder returns
| PFSI | Industry | Market | |
|---|---|---|---|
| 7 Day | -9.7% | -13.0% | -2.6% |
| 30 Day | -46.8% | -36.1% | -15.2% |
| 90 Day | -39.8% | -41.2% | -22.2% |
| 1 Year | -10.7%-11.4% | -34.9%-36.4% | -11.5%-13.3% |
| 3 Year | 19.7%16.7% | -28.7%-33.7% | 13.2%5.7% |
| 5 Year | 17.8%14.8% | -11.1%-20.9% | 31.8%17.2% |
Price Volatility Vs. Market
How volatile is PennyMac Financial Services's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Senior MD & CFO Andrew Chang Just Bought Shares In PennyMac Financial Services, Inc. (NYSE:PFSI)1 month ago | Simply Wall St
PennyMac Financial Services, Inc. (NYSE:PFSI) Insiders Have Been Selling1 month ago | Simply Wall St
PennyMac Financial Services (NYSE:PFSI) Shareholders Booked A 96% Gain In The Last Five YearsValuation
Is PennyMac Financial Services undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PFSI ($17.91) is trading below our estimate of fair value ($103.37)
Significantly Below Fair Value: PFSI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PFSI is good value based on its PE Ratio (3.6x) compared to the Mortgage industry average (10x).
PE vs Market: PFSI is good value based on its PE Ratio (3.6x) compared to the US market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: PFSI is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: PFSI is good value based on its PB Ratio (0.7x) compared to the US Mortgage industry average (0.8x).
Next Steps
Future Growth
How is PennyMac Financial Services forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
2.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PFSI's forecast earnings growth (2.5% per year) is above the savings rate (1.7%).
Earnings vs Market: PFSI's earnings (2.5% per year) are forecast to grow slower than the US market (12.2% per year).
High Growth Earnings: PFSI's earnings are forecast to grow, but not significantly.
Revenue vs Market: PFSI's revenue is expected to decline over the next 3 years (-9% per year).
High Growth Revenue: PFSI's revenue is forecast to decline over the next 3 years (-9% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PFSI's Return on Equity is forecast to be low in 3 years time (13.8%).
Next Steps
Past Performance
How has PennyMac Financial Services performed over the past 5 years?
43.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PFSI has a high level of non-cash earnings.
Growing Profit Margin: PFSI's current net profit margins (19.1%) are higher than last year (7.1%).
Past Earnings Growth Analysis
Earnings Trend: PFSI's earnings have grown significantly by 43.5% per year over the past 5 years.
Accelerating Growth: PFSI's earnings growth over the past year (348.1%) exceeds its 5-year average (43.5% per year).
Earnings vs Industry: PFSI earnings growth over the past year (348.1%) exceeded the Mortgage industry 10.9%.
Return on Equity
High ROE: PFSI's Return on Equity (19.1%) is considered low.
Next Steps
Financial Health
How is PennyMac Financial Services's financial position?
Financial Position Analysis
Short Term Liabilities: PFSI's short term assets ($6.8B) exceed its short term liabilities ($5.9B).
Long Term Liabilities: PFSI's short term assets ($6.8B) exceed its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: PFSI's debt to equity ratio (348.3%) is considered high.
Reducing Debt: PFSI's debt to equity ratio has increased from 171.6% to 348.3% over the past 5 years.
Debt Coverage: PFSI's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if PFSI's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is PennyMac Financial Services's current dividend yield, its reliability and sustainability?
2.40%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PFSI's dividend (2.68%) is higher than the bottom 25% of dividend payers in the US market (2.04%).
High Dividend: PFSI's dividend (2.68%) is low compared to the top 25% of dividend payers in the US market (5.7%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether PFSI's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if PFSI's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (4.8%), PFSI's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PFSI's dividends in 3 years are forecast to be thoroughly covered by earnings (9.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
David Spector (56yo)
3.25s
Tenure
US$5,777,619
Compensation
Mr. David A. Spector has been the President and Chief Executive Officer of PennyMac Financial Services, Inc. since February 2013 and January 1, 2017 respectively. Mr. Spector has been Chief Executive Offic ...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD5.78M) is about average for companies of similar size in the US market ($USD4.70M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.25yrs | US$5.78m | 2.2% $34.8m | |
| Senior MD & CFO | 3.25yrs | US$2.26m | 1.25% $19.8m | |
| Senior MD & Chief Investment Officer | 1.58yrs | US$2.51m | 0.074% $1.2m | |
| Senior MD & Chief Mortgage Banking Officer | 7.17yrs | US$3.32m | 0.95% $15.0m | |
| Senior MD & Chief Enterprise Operations Officer | no data | no data | 0.68% $10.8m | |
| Chief Accounting Officer | no data | no data | 0.049% $779.6k | |
| Senior MD & Chief Information Officer | no data | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior MD | no data | no data | no data | |
| Chief Mortgage Operations Officer & Senior Management Director | 7.17yrs | no data | no data |
3.3yrs
Average Tenure
57yo
Average Age
Experienced Management: PFSI's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.25yrs | US$5.78m | 2.2% $34.8m | |
| Non-Executive Chairman of the Board | 7.17yrs | US$8.87m | 10.65% $168.3m | |
| Independent Director | 7.33yrs | US$192.57k | 0.83% $13.1m | |
| Independent Director | 7.33yrs | US$199.57k | 0.51% $8.1m | |
| Independent Lead Director | no data | US$234.95k | 0.086% $1.4m | |
| Director | 2.17yrs | US$2.15m | 0.29% $4.6m | |
| Independent Director | 6.42yrs | US$209.07k | 0.031% $490.9k | |
| Independent Director | 7.33yrs | US$199.57k | 0.23% $3.6m | |
| Independent Director | 5.75yrs | US$221.07k | 0.046% $720.5k | |
| Independent Director | 2.67yrs | US$203.82k | 0.0044% $70.2k |
7.2yrs
Average Tenure
64.5yo
Average Age
Experienced Board: PFSI's board of directors are considered experienced (7.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PFSI insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 133.3%.
Top Shareholders
Company Information
PennyMac Financial Services, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: PennyMac Financial Services, Inc.
- Ticker: PFSI
- Exchange: NYSE
- Founded: 2008
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: US$1.581b
- Shares outstanding: 79.19m
- Website: https://ir.pennymacfinancial.com
Number of Employees
Location
- PennyMac Financial Services, Inc.
- 3043 Townsgate Road
- Westlake Village
- California
- 91361
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PFSI | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | May 2013 |
| 1AC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 2013 |
Biography
PennyMac Financial Services, Inc., through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. It operates through three segments: Loan Production, Loan Servicing, and Investment Management. The Loan Production segment is involved in the origination, acquisition, and sale of mortgage loans. This segment originates first-lien residential conventional and government-insured or guaranteed mortgage loans. The Loan Servicing segment engages in the servicing of newly originated mortgage loans, and execution and management of early buyout loans. It performs loan administration, collection, and default management activities, including the collection and remittance of loan payments; response to customer inquiries; accounting for principal and interest; holding custodial funds for the payment of property taxes and insurance premiums; counseling delinquent mortgagors; and supervising foreclosures and property dispositions. This segment also services conventional and government-insured or guaranteed loans; and distressed mortgage loans that have been acquired as investments by its advised entities. The Investment Management segment is involved in sourcing, performing diligence, bidding, and closing investment asset acquisitions; managing correspondent production activities for PennyMac Mortgage Investment Trust; and managing the acquired assets. PennyMac Financial Services, Inc. was founded in 2008 and is headquartered in Westlake Village, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 04:41 |
| End of Day Share Price | 2020/04/06 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.