NYSE:PFSI

Stock Analysis Report

PennyMac Financial Services

Executive Summary

PennyMac Financial Services, Inc., through its subsidiaries, engages in the mortgage banking and investment management activities in the United States.

Snowflake

Fundamentals

Good value 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


Market Performance


7 Day Return

0.1%

NYSE:PFSI

-0.3%

US Mortgage

-1.0%

US Market


1 Year Return

24.5%

NYSE:PFSI

-0.7%

US Mortgage

-0.4%

US Market

PFSI outperformed the Mortgage industry which returned -2.5% over the past year.

PFSI outperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

PFSIIndustryMarket
7 Day0.1%-0.3%-1.0%
30 Day12.2%-2.0%-3.3%
90 Day17.2%-0.7%0.4%
1 Year24.5%24.5%1.4%-0.7%1.8%-0.4%
3 Year66.3%63.2%33.4%24.5%39.4%30.4%
5 Year76.1%72.8%57.5%41.1%54.2%37.1%

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

Valuation

Is PennyMac Financial Services undervalued based on future cash flows and its price relative to the stock market?

30%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

PennyMac Financial Services's share price is below the future cash flow value, and at a moderate discount (> 20%).

PennyMac Financial Services's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

PennyMac Financial Services is good value based on earnings compared to the US Mortgage industry average.

PennyMac Financial Services is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

PennyMac Financial Services is good value based on expected growth next year.


Price Based on Value of Assets

PennyMac Financial Services is overvalued based on assets compared to the US Mortgage industry average.


Next Steps

Future Growth

How is PennyMac Financial Services expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PennyMac Financial Services's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).

PennyMac Financial Services's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).

PennyMac Financial Services's revenue growth is positive but not above the United States of America market average.

PennyMac Financial Services's earnings growth is positive but not above the United States of America market average.

PennyMac Financial Services's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

PennyMac Financial Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has PennyMac Financial Services performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PennyMac Financial Services has delivered over 20% year on year earnings growth in the past 5 years.

PennyMac Financial Services's 1-year earnings growth exceeds its 5-year average (51.1% vs 30.6%)

PennyMac Financial Services's earnings growth has exceeded the US Mortgage industry average in the past year (51.1% vs 32.9%).


Return on Equity

PennyMac Financial Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

PennyMac Financial Services used its assets more efficiently than the US Mortgage industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if PennyMac Financial Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is PennyMac Financial Services's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Unable to establish if PennyMac Financial Services has an acceptable proportion of non-loan assets without balance sheet data.

Unable to establish if PennyMac Financial Services has a sufficient allowance for bad loans without relevant financial data.

Unable to establish if PennyMac Financial Services's liabilities are primarily made up of low risk funding sources without deposits or liabilities data.

PennyMac Financial Services's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

PennyMac Financial Services reports no customer deposits, loans are made up entirely of borrowed funds.

Unable to establish if PennyMac Financial Services has an acceptable level of bad loans without bad loans data.


Next Steps

Dividend

What is PennyMac Financial Services's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate PennyMac Financial Services's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate PennyMac Financial Services's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as PennyMac Financial Services has not reported any payouts.

Unable to verify if PennyMac Financial Services's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as PennyMac Financial Services has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of PennyMac Financial Services's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of PennyMac Financial Services's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

David Spector (56yo)

2.6yrs

Tenure

US$5,777,619

Compensation

Mr. David A. Spector has been the President and of Chief Executive Officer PennyMac Financial Services, Inc. since February 2013 and January 1, 2017 respectively. Mr. Spector has been Chief Executive Offic ...


CEO Compensation Analysis

David's remuneration is higher than average for companies of similar size in United States of America.

David's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.6yrs

Average Tenure

58yo

Average Age

The tenure for the PennyMac Financial Services management team is about average.


Board Age and Tenure

6.5yrs

Average Tenure

64.5yo

Average Age

The tenure for the PennyMac Financial Services board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jeff Grogin (59yo)

    Senior MD & Chief Administrative Officer

    • Tenure: 6.5yrs
  • Greg Hendry (58yo)

    Chief Accounting Officer

  • Doug Jones (62yo)

    Senior MD & Chief Mortgage Banking Officer

    • Tenure: 6.5yrs
    • Compensation: $3.32m
  • Vandad Fartaj (44yo)

    Senior MD & Chief Investment Officer

    • Tenure: 0.9yrs
    • Compensation: $2.51m
  • Lior Ofir

    Senior MD & Chief Information Officer

  • Andrew Chang (42yo)

    Senior MD & CFO

    • Tenure: 2.6yrs
    • Compensation: $2.26m
  • Derek Stark

    Senior MD

  • Christopher Oltmann

    Senior Vice President of Investor Relations

  • David Spector (56yo)

    President

    • Tenure: 2.6yrs
    • Compensation: $5.78m
  • Anne McCallion (64yo)

    Senior MD

    • Tenure: 2.6yrs
    • Compensation: $2.15m

Board Members

  • Stan Kurland (67yo)

    Executive Chairman

    • Tenure: 6.5yrs
    • Compensation: $8.87m
  • Emily Youssouf (67yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: $209.07k
  • Matt Botein (46yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: $199.57k
  • David Spector (56yo)

    President

    • Tenure: 6.7yrs
    • Compensation: $5.78m
  • Farhad Nanji (40yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: $199.57k
  • Ted Tozer (62yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: $203.82k
  • Joseph Mazzella (66yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: $192.57k
  • Patrick Kinsella (65yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: $221.07k
  • Anne McCallion (64yo)

    Senior MD

    • Tenure: 1.5yrs
    • Compensation: $2.15m
  • Jim C. Hunt (67yo)

    Independent Lead Director

    • Compensation: $234.95k

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$2.104b
  • Shares outstanding: 78.61m
  • Website: Click here

Number of Employees


Location

  • PennyMac Financial Services, Inc.
  • 3043 Townsgate Road
  • Westlake Village
  • California
  • 91361
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFSINYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2013
1ACDB (Deutsche Boerse AG)YesCommon StockDEEURMay 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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 01:14
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.