NYSE:PMT

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

Fundamentals

Fair value with acceptable track record.


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


Market Performance


7 Day Return

2.3%

NYSE:PMT

0.4%

US Mortgage REITs

0.2%

US Market


1 Year Return

11.1%

NYSE:PMT

-9.8%

US Mortgage REITs

-0.7%

US Market

PMT outperformed the Mortgage REITs industry which returned -9.7% over the past year.

PMT outperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

PMTIndustryMarket
7 Day2.3%0.4%0.2%
30 Day1.0%-2.8%-2.7%
90 Day4.9%-2.4%1.6%
1 Year21.9%11.1%0.4%-9.8%1.6%-0.7%
3 Year100.4%46.7%32.2%-4.7%40.0%30.9%
5 Year75.0%0.5%47.7%-15.3%53.8%36.8%

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

Valuation

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

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


Price Based on Earnings

PennyMac Mortgage Investment Trust is good value based on earnings compared to the US Mortgage REITs industry average.

PennyMac Mortgage Investment Trust is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

PennyMac Mortgage Investment Trust is poor value based on expected growth next year.


Price Based on Value of Assets

PennyMac Mortgage Investment Trust is overvalued based on assets compared to the US Mortgage REITs industry average.


Next Steps

Future Growth

How is PennyMac Mortgage Investment Trust expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PennyMac Mortgage Investment Trust's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).

PennyMac Mortgage Investment Trust's earnings are expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).

PennyMac Mortgage Investment Trust's revenue growth is expected to exceed the United States of America market average.

PennyMac Mortgage Investment Trust's earnings growth is positive but not above the United States of America market average.

PennyMac Mortgage Investment Trust'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 Mortgage Investment Trust is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-7.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PennyMac Mortgage Investment Trust's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

PennyMac Mortgage Investment Trust's 1-year earnings growth exceeds its 5-year average (61.6% vs -7.4%)

PennyMac Mortgage Investment Trust's earnings growth has exceeded the US Mortgage REITs industry average in the past year (61.6% vs 3.7%).


Return on Equity

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


Return on Assets

PennyMac Mortgage Investment Trust used its assets more efficiently than the US Mortgage REITs industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if PennyMac Mortgage Investment Trust 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 Mortgage Investment Trust's financial position?


Financial Position Analysis

PennyMac Mortgage Investment Trust's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

PennyMac Mortgage Investment Trust's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

PennyMac Mortgage Investment Trust's level of debt (381.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (198.1% vs 381.8% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on PennyMac Mortgage Investment Trust's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

8.71%

Expected Dividend Yield


Dividend Yield and Payments Analysis

PennyMac Mortgage Investment Trust's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

PennyMac Mortgage Investment Trust's dividend is above the markets top 25% of dividend payers in United States of America (3.83%).

PennyMac Mortgage Investment Trust has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but PennyMac Mortgage Investment Trust only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1.1x coverage).


Next Steps

Management

What is the CEO of PennyMac Mortgage Investment Trust's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

David Spector (56yo)

2.6yrs

Tenure

US$747,988

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 lower 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

3.5yrs

Average Tenure

58.5yo

Average Age

The tenure for the PennyMac Mortgage Investment Trust management team is about average.


Board Age and Tenure

10.0yrs

Average Tenure

62yo

Average Age

The average tenure for the PennyMac Mortgage Investment Trust board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$721,45922 Mar 19
David Spector
EntityIndividual
Role
Chief Executive Officer
Shares35,000
Max PriceUS$20.61
BuyUS$60,15904 Sep 18
Marianne Sullivan
EntityIndividual
Role
Member of the Board of Directors
Shares3,015
Max PriceUS$19.96

Ownership Breakdown


Management Team

  • Stan Kurland (67yo)

    Executive Chairman

    • Tenure: 10.1yrs
    • Compensation: US$1.09m
  • Anne McCallion (64yo)

    Senior MD & Chief Enterprise Operations Officer

    • Tenure: 3.5yrs
    • Compensation: US$235.15k
  • David Spector (56yo)

    • Tenure: 2.6yrs
    • Compensation: US$747.99k
  • Greg Hendry (58yo)

    Chief Accounting Officer

    • Tenure: 0.0yrs
  • Doug Jones (62yo)

    Senior MD & Chief Mortgage Banking Officer

    • Tenure: 8.0yrs
    • Compensation: US$249.99k
  • Andrew Chang (42yo)

    Senior MD & CFO

    • Tenure: 2.6yrs
    • Compensation: US$249.99k
  • Jeff Grogin (59yo)

    Senior MD & Chief Administrative Officer

    • Tenure: 7.5yrs
    • Compensation: US$191.06k
  • Vandad Fartaj (44yo)

    Senior MD & Chief Investment Officer

    • Tenure: 9.4yrs
    • Compensation: US$249.99k
  • Derek Stark

    Senior MD

    • Tenure: 1.5yrs
  • Christopher Oltmann

    Senior Vice President of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Stan Kurland (67yo)

    Executive Chairman

    • Tenure: 10.1yrs
    • Compensation: US$1.09m
  • Frank Willey (65yo)

    Independent Trustee

    • Tenure: 10.0yrs
    • Compensation: US$193.35k
  • Stacey Stewart (55yo)

    Independent Trustee

    • Tenure: 10.0yrs
    • Compensation: US$184.60k
  • David Spector (56yo)

    • Tenure: 2.6yrs
    • Compensation: US$747.99k
  • Marianne Sullivan (53yo)

    • Tenure: 1.9yrs
    • Compensation: US$184.60k
  • Scott Carnahan (65yo)

    Independent Trustee

    • Tenure: 10.0yrs
    • Compensation: US$192.35k
  • Randall Hadley (75yo)

    Independent Lead Trustee

    • Tenure: 0.0yrs
    • Compensation: US$207.60k
  • Nancy McAllister (59yo)

    Independent Trustee

    • Tenure: 6.8yrs
    • Compensation: US$197.35k
  • Preston DuFauchard (62yo)

    Independent Trustee

    • Tenure: 6.8yrs
    • Compensation: US$195.35k

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
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$1.921b
  • Shares outstanding: 86.61m
  • 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 seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:26
End of Day Share Price2019/08/20 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.