NYSE:PMT.PRA

Stock Analysis Report

PennyMac Mortgage Investment Trust

Executive Summary

PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in residential mortgage loans and mortgage-related assets in the United States.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has PennyMac Mortgage Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PMT.PRA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.4%

PMT.PRA

-9.4%

US Mortgage REITs

-10.6%

US Market


1 Year Return

0.5%

PMT.PRA

-2.3%

US Mortgage REITs

5.2%

US Market

Return vs Industry: PMT.PRA exceeded the US Mortgage REITs industry which returned -2.3% over the past year.

Return vs Market: PMT.PRA underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

PMT.PRAIndustryMarket
7 Day-3.4%-9.4%-10.6%
30 Day-3.9%-6.7%-8.5%
90 Day-3.2%-2.1%-4.6%
1 Year8.6%0.5%8.3%-2.3%7.4%5.2%
3 Year32.7%4.5%30.6%-5.6%31.7%23.2%
5 Yearn/a60.1%-8.1%56.4%39.3%

Price Volatility Vs. Market

How volatile is PennyMac Mortgage Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is PennyMac Mortgage Investment Trust undervalued compared to its fair value and its price relative to the market?

31.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PMT.PRA ($25.8) is trading below our estimate of fair value ($37.79)

Significantly Below Fair Value: PMT.PRA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PMT.PRA is good value based on its PE Ratio (8.4x) compared to the Mortgage REITs industry average (12.3x).

PE vs Market: PMT.PRA is good value based on its PE Ratio (8.4x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: PMT.PRA is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: PMT.PRA is overvalued based on its PB Ratio (1x) compared to the US Mortgage REITs industry average (1x).


Next Steps

Future Growth

How is PennyMac Mortgage Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PMT.PRA's forecast earnings growth (8% per year) is above the savings rate (1.7%).

Earnings vs Market: PMT.PRA's earnings (8% per year) are forecast to grow slower than the US market (13% per year).

High Growth Earnings: PMT.PRA's earnings are forecast to grow, but not significantly.

Revenue vs Market: PMT.PRA's revenue is expected to decline over the next 3 years (-16.8% per year).

High Growth Revenue: PMT.PRA's revenue is forecast to decline over the next 3 years (-16.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PMT.PRA's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has PennyMac Mortgage Investment Trust performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PMT.PRA has high quality earnings.

Growing Profit Margin: PMT.PRA's current net profit margins (23.1%) are lower than last year (34.5%).


Past Earnings Growth Analysis

Earnings Trend: PMT.PRA's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: PMT.PRA's earnings growth over the past year (58.5%) exceeds its 5-year average (7.5% per year).

Earnings vs Industry: PMT.PRA earnings growth over the past year (58.5%) exceeded the Mortgage REITs industry 11.8%.


Return on Equity

High ROE: PMT.PRA's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is PennyMac Mortgage Investment Trust'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

Inventory Level: PMT.PRA has a low level of unsold assets or inventory.

Debt Coverage by Assets: PMT.PRA's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: PMT.PRA's level of assets compared to its equity is low.

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

Low Risk Liabilities: PMT.PRA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PMT.PRA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PMT.PRA has advanced significantly more loans than the customer deposits it holds.

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


Next Steps

Dividend

What is PennyMac Mortgage Investment Trust's current dividend yield, its reliability and sustainability?

8.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PMT.PRA's dividend (8.76%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: PMT.PRA's dividend (8.76%) is in the top 25% of dividend payers in the US market (4.09%)


Stability and Growth of Payments

Stable Dividend: PMT.PRA's dividend payments have been volatile in the past 10 years.

Growing Dividend: PMT.PRA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.7%), PMT.PRA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PMT.PRA's dividends in 3 years are forecast to be covered by earnings (85.1% payout ratio).


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

David Spector (56yo)

3.1yrs

Tenure

US$747,988

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Stanford Kurland
Executive Chairman10.6yrsUS$1.09m0.84% $18.0m
David Spector
CEO, President & Trustee3.1yrsUS$747.99k0.12% $2.5m
Andrew Chang
Senior MD & CFO3.1yrsUS$249.99k0.076% $1.6m
Vandad Fartaj
Senior MD & Chief Investment Officer9.9yrsUS$249.99k0.083% $1.8m
Douglas Jones
Senior MD & Chief Mortgage Banking Officer8.5yrsUS$249.99k0.055% $1.2m
Gregory Hendry
Chief Accounting Officer0yrsno data0.012% $262.6k
Jeffrey Grogin
Senior MD & Chief Administrative Officer8yrsUS$191.06k0.031% $661.8k
Christopher Oltmann
Senior Vice President of Investor Relations0yrsno datano data
Derek Stark
Senior MD2yrsno datano data
David Walker
Senior MD & Chief Risk Officer10.8yrsUS$191.06k0.070% $1.5m

8.0yrs

Average Tenure

58.5yo

Average Age

Experienced Management: PMT.PRA's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stanford Kurland
Executive Chairman10.6yrsUS$1.09m0.84% $18.0m
David Spector
CEO, President & Trustee3.1yrsUS$747.99k0.12% $2.5m
Frank Willey
Independent Trustee10.5yrsUS$193.35k0.071% $1.5m
Stacey Stewart
Independent Trustee10.5yrsUS$184.60k0.018% $381.0k
Marianne Sullivan
Independent Trustee2.4yrsUS$184.60k0.014% $303.3k
Scott Carnahan
Independent Trustee10.5yrsUS$192.35k0.055% $1.2m
Randall Hadley
Independent Lead Trustee0yrsUS$207.60k0.030% $656.4k
Nancy McAllister
Independent Trustee7.3yrsUS$197.35k0.029% $616.0k
Preston DuFauchard
Independent Trustee7.3yrsUS$195.35k0.016% $345.2k

10.5yrs

Average Tenure

62yo

Average Age

Experienced Board: PMT.PRA's board of directors are seasoned and experienced ( 10.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.7%.


Top Shareholders

Company Information

PennyMac Mortgage Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PennyMac Mortgage Investment Trust
  • Ticker: PMT.PRA
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$2.152b
  • Shares outstanding: 100.34m
  • Website: https://www.pennymacmortgageinvestmenttrust.com

Number of Employees


Location

  • PennyMac Mortgage Investment Trust
  • 3043 Townsgate Road
  • Westlake Village
  • California
  • 91361
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PMTNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 2009
8PMDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2009
PMT.PRANYSE (New York Stock Exchange)PFD SER AUSUSDMar 2017
PMT.PRBNYSE (New York Stock Exchange)CUM RED PFD BUSUSDJun 2017

Biography

PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in residential mortgage loans and mortgage-related assets in the United States. The company’s Correspondent Production segment engages in purchasing, pooling, and reselling newly originated prime credit mortgage loans directly or in the form of mortgage-backed securities (MBS). Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, firm commitment to purchase CRT securities, distressed mortgage loans, real estate acquired in settlement of mortgage loans, non-Agency subordinated bonds, and small balance commercial real estate mortgage loans. The company’s Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS; and interest rate hedging activities related to indebtedness. PNMAC Capital Management, LLC acts as the manager of PennyMac Mortgage Investment Trust. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2009 and is based in Westlake Village, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 02:26
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.