PennyMac Mortgage Investment Trust (NYSE:PMT) - Share price, News & Analysis

PMT fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	0/6
Financial Health	2/6
Dividends	3/6

PMT Stock Overview

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

Rewards

Earnings are forecast to grow 94.07% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 12.08% is not well covered by earnings

PennyMac Mortgage Investment Trust Competitors

Annaly Capital Management

NYSE:NLY

US$10.1b

Starwood Property Trust

NYSE:STWD

US$7.1b

AGNC Investment

NasdaqGS:AGNC

US$6.2b

Blackstone Mortgage Trust

NYSE:BXMT

US$5.2b

Price History & Performance

Summary of all time highs, changes and price drops for PennyMac Mortgage Investment Trust
Historical stock prices
Current Share Price	US$15.56
52 Week High	US$21.53
52 Week Low	US$14.61
Beta	1.09
1 Month Change	2.71%
3 Month Change	-1.89%
1 Year Change	-17.89%
3 Year Change	-26.67%
5 Year Change	-12.58%
Change since IPO	-18.53%

Recent News & Updates

Apr 06

PennyMac Mortgage: 11% Dividend And 20% Upside Potential

PennyMac Mortgage Investment Trust is a leader in overall loan production and the 6th largest loan servicer. The long-term outlook for new originations includes favorable trends in household formation. The company's loan servicing segment will benefit from lower prepayment rates as mortgage rates increase. The company's dividend payout is currently yielding 11%. At this rate, it would take an investor less than 10 years to recover their principal from nothing more than the dividend payments.

Shareholder Returns

	PMT	US Mortgage REITs	US Market
7D	0.5%	0.3%	0.5%
1Y	-17.9%	-20.8%	-11.5%

Return vs Industry: PMT matched the US Mortgage REITs industry which returned -18.5% over the past year.

Return vs Market: PMT underperformed the US Market which returned -8.1% over the past year.

Price Volatility

Is PMT's price volatile compared to industry and market?
PMT volatility
PMT Average Weekly Movement	3.8%
Mortgage REITs Industry Average Movement	4.4%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: PMT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PMT's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2009	1	David Spector	https://www.pennymacmortgageinvestmenttrust.com

PennyMac Mortgage Investment Trust, a specialty finance company, primarily invests in mortgage-related assets in the United States. The company’s Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, distressed loans, real estate, and non-agency subordinated bonds. Its Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency mortgage-backed securities (MBS), as well as related interest rate hedging activities.

PennyMac Mortgage Investment Trust Fundamentals Summary

How do PennyMac Mortgage Investment Trust's earnings and revenue compare to its market cap?
PMT fundamental statistics
Market Cap	US$1.43b
Earnings (TTM)	-US$69.29m
Revenue (TTM)	US$612.49m

2.3x

P/S Ratio

-20.6x

P/E Ratio

Is PMT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PMT income statement (TTM)
Revenue	US$612.49m
Cost of Revenue	US$259.97m
Gross Profit	US$352.52m
Other Expenses	US$421.81m
Earnings	-US$69.29m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.75
Gross Margin	57.56%
Net Profit Margin	-11.31%
Debt/Equity Ratio	447.0%

How did PMT perform over the long term?

See historical performance and comparison

Dividends

12.1%

Current Dividend Yield

-262%

Payout Ratio

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

0.85x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: PMT ($15.56) is trading above our estimate of fair value ($10.44)

Significantly Below Fair Value: PMT is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: PMT is unprofitable, so we can't compare its PE Ratio to the US Mortgage REITs industry average.

PE vs Market: PMT is unprofitable, so we can't compare its PE Ratio to the US market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PMT's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: PMT's PB Ratio (0.9x) is in line with the US Mortgage REITs industry average.

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

94.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PMT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: PMT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PMT's is expected to become profitable in the next 3 years.

Revenue vs Market: PMT's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: PMT's revenue is forecast to decline over the next 3 years (-1% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PMT is currently unprofitable.

Growing Profit Margin: PMT is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PMT is unprofitable, but has reduced losses over the past 5 years at a rate of 0.3% per year.

Accelerating Growth: Unable to compare PMT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PMT is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (5.4%).

Return on Equity

High ROE: PMT has a negative Return on Equity (-1.52%), as it is currently unprofitable.

Financial Health

How is PennyMac Mortgage Investment Trust's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PMT's short term assets ($5.5B) exceed its short term liabilities ($5.5B).

Long Term Liabilities: PMT's short term assets ($5.5B) exceed its long term liabilities ($4.7B).

Debt to Equity History and Analysis

Debt Level: PMT's net debt to equity ratio (435.1%) is considered high.

Reducing Debt: PMT's debt to equity ratio has increased from 303% to 447% over the past 5 years.

Debt Coverage: PMT's debt is not well covered by operating cash flow (8%).

Interest Coverage: Insufficient data to determine if PMT's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is PennyMac Mortgage Investment Trust 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

12.08%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PMT's dividend (12.08%) is higher than the bottom 25% of dividend payers in the US market (1.51%).

High Dividend: PMT's dividend (12.08%) is in the top 25% of dividend payers in the US market (3.97%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: PMT is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (21.7%), PMT's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure

CEO

David Spector (58 yo)

5.33yrs

Tenure

US$999,981

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...

Leadership Team

Experienced Management: PMT's management team is considered experienced (4 years average tenure).

Board Members

Experienced Board: PMT's board of directors are considered experienced (9.5 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: PMT insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31