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PFSI

PennyMac Financial Services NYSE:PFSI Stock Report

Last Price

US$49.56

Market Cap

US$2.7b

7D

5.0%

1Y

-18.9%

Updated

24 May, 2022

Data

Company Financials +
PFSI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health1/6
Dividends2/6

PFSI Stock Overview

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

PennyMac Financial Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PennyMac Financial Services
Historical stock prices
Current Share PriceUS$49.56
52 Week HighUS$71.52
52 Week LowUS$44.25
Beta1.2
1 Month Change2.40%
3 Month Change-13.21%
1 Year Change-18.87%
3 Year Change118.71%
5 Year Change203.12%
Change since IPO152.86%

Recent News & Updates

May 12
PennyMac Financial Services, Inc. (NYSE:PFSI) Analysts Just Cut Their EPS Forecasts Substantially

PennyMac Financial Services, Inc. (NYSE:PFSI) Analysts Just Cut Their EPS Forecasts Substantially

Today is shaping up negative for PennyMac Financial Services, Inc. ( NYSE:PFSI ) shareholders, with the analysts...

May 09
PennyMac Financial Services (NYSE:PFSI) Is Due To Pay A Dividend Of US$0.20

PennyMac Financial Services (NYSE:PFSI) Is Due To Pay A Dividend Of US$0.20

The board of PennyMac Financial Services, Inc. ( NYSE:PFSI ) has announced that it will pay a dividend on the 27th of...

Shareholder Returns

PFSIUS MortgageUS Market
7D5.0%-1.2%-4.0%
1Y-18.9%-29.9%-13.2%

Return vs Industry: PFSI exceeded the US Mortgage industry which returned -30.3% over the past year.

Return vs Market: PFSI underperformed the US Market which returned -12.3% over the past year.

Price Volatility

Is PFSI's price volatile compared to industry and market?
PFSI volatility
PFSI Average Weekly Movement5.3%
Mortgage Industry Average Movement3.8%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: PFSI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PFSI's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20086,308David Spectorhttps://ir.pennymacfinancial.com

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: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.

PennyMac Financial Services Fundamentals Summary

How do PennyMac Financial Services's earnings and revenue compare to its market cap?
PFSI fundamental statistics
Market CapUS$2.70b
Earnings (TTM)US$800.22m
Revenue (TTM)US$3.30b

3.4x

P/E Ratio

0.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PFSI income statement (TTM)
RevenueUS$3.30b
Cost of RevenueUS$408.14m
Gross ProfitUS$2.90b
Other ExpensesUS$2.10b
EarningsUS$800.22m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)14.70
Gross Margin87.65%
Net Profit Margin24.21%
Debt/Equity Ratio282.3%

How did PFSI perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

6%

Payout Ratio

Valuation

Is PennyMac Financial Services undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


41.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PFSI ($49.56) is trading below our estimate of fair value ($85.07)

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 Price-To-Earnings Ratio (3.4x) compared to the US Mortgage industry average (12x).

PE vs Market: PFSI is good value based on its Price-To-Earnings Ratio (3.4x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: PFSI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PFSI is good value based on its Price-To-Book Ratio (0.8x) compared to the US Mortgage industry average (0.9x).


Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-3.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFSI's earnings are forecast to decline over the next 3 years (-3.2% per year).

Earnings vs Market: PFSI's earnings are forecast to decline over the next 3 years (-3.2% per year).

High Growth Earnings: PFSI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PFSI's revenue is expected to decline over the next 3 years (-11% per year).

High Growth Revenue: PFSI's revenue is forecast to decline over the next 3 years (-11% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PFSI's Return on Equity is forecast to be high in 3 years time


Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


53.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PFSI has high quality earnings.

Growing Profit Margin: PFSI's current net profit margins (24.2%) are lower than last year (41.3%).


Past Earnings Growth Analysis

Earnings Trend: PFSI's earnings have grown significantly by 53.4% per year over the past 5 years.

Accelerating Growth: PFSI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PFSI had negative earnings growth (-53.4%) over the past year, making it difficult to compare to the Mortgage industry average (7.1%).


Return on Equity

High ROE: Whilst PFSI's Return on Equity (23.25%) is high, this metric is skewed due to their high level of debt.


Financial Health

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

Financial Health Score

1/6

Financial Health Score 1/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: PFSI's Assets to Equity ratio (4.2x) is low.

Allowance for Bad Loans: Insufficient data to determine if PFSI has a sufficient allowance for bad loans.

Low Risk Liabilities: PFSI reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if PFSI has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: PFSI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if PFSI has an appropriate level of bad loans.


Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.61%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PFSI's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: PFSI's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PFSI has been paying a dividend for less than 10 years.

Growing Dividend: PFSI's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (6%), PFSI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

David Spector (58 yo)

5.33yrs

Tenure

US$13,575,224

Compensation

Mr. David A. Spector has been the Chief Executive Officer of PennyMac Financial Services, Inc. since January 1, 2017. He served as President at PennyMac Financial Services, Inc. since February 2013 to Febr...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD13.58M) is above average for companies of similar size in the US market ($USD6.83M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PFSI's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: PFSI's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PFSI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PennyMac Financial Services, Inc.'s 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
  • Implied Market Cap: US$2.698b
  • Shares outstanding: 54.45m
  • Website: https://ir.pennymacfinancial.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.