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

Average dividend payer and fair 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


Market Performance


7 Day Return

1.5%

PMT

2.1%

US Mortgage REITs

1.0%

US Market


1 Year Return

21.1%

PMT

-1.2%

US Mortgage REITs

8.0%

US Market

Return vs Industry: PMT exceeded the US Mortgage REITs industry which returned -1.2% over the past year.

Return vs Market: PMT exceeded the US Market which returned 8% over the past year.


Shareholder returns

PMTIndustryMarket
7 Day1.5%2.1%1.0%
30 Day2.9%0.8%-0.07%
90 Day3.3%-0.6%-1.0%
1 Year32.4%21.1%10.0%-1.2%10.4%8.0%
3 Year101.4%49.0%39.0%0.3%46.2%36.7%
5 Year84.5%6.7%56.5%-10.1%64.3%46.2%

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 compared to its fair value and its price relative to the market?

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PMT ($22.78) is trading below our estimate of fair value ($32.57)

Significantly Below Fair Value: PMT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PMT is good value based on its PE Ratio (9.2x) compared to the Mortgage REITs industry average (12.5x).

PE vs Market: PMT is good value based on its PE Ratio (9.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: PMT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: PMT is overvalued based on its PB Ratio (1.1x) 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?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PMT's forecast earnings growth (6.7% per year) is above the savings rate (2.7%).

Earnings vs Market: PMT's earnings (6.7% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: PMT's revenue (7.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: PMT's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PMT's Return on Equity is forecast to be low in 3 years time (9.8%).


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

Earnings Trend: PMT's earnings have declined by -7.4% per year over the past 5 years.

Accelerating Growth: PMT's earnings growth over the past year (61.6%) exceeds its 5-year average (-7.4% per year).

Earnings vs Industry: PMT earnings growth over the past year (61.6%) exceeded the Mortgage REITs industry 5.2%.


Return on Equity

High ROE: PMT's Return on Equity (9.6%) is considered low.


Return on Assets

ROA vs Industry: PMT has a higher Return on Assets than the Mortgage REITs industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate PMT's Return on Capital Employed to determine if it has improved over the past 3 years.


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 has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

8.25%

Current Dividend Yield


Dividend Yield vs Market

company8.3%marketbottom25%1.4%markettop25%3.7%industryaverage10.2%forecastin3Years8.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PMT's dividend (8.25%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: PMT's dividend (8.25%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: PMT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PMT's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.2%), PMT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PMT's dividends in 3 years are forecast to be covered by earnings (89.6% payout ratio).


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?

7.7yrs

Average management tenure


CEO

David Spector (56yo)

2.8yrs

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 ...


Management Age and Tenure

7.7yrs

Average Tenure

58.5yo

Average Age

Experienced Management: PMT's management team is seasoned and experienced (7.7 years average tenure).


Board Age and Tenure

10.2yrs

Average Tenure

62yo

Average Age

Experienced Board: PMT's board of directors are seasoned and experienced ( 10.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$721,45922 Mar 19
David Spector
EntityIndividual
Role
Chief Executive Officer
CEO, President & Trustee
Shares35,000
Max PriceUS$20.61

Ownership Breakdown


Management Team

  • Stan Kurland (67yo)

    Executive Chairman

    • Tenure: 10.3yrs
    • Compensation: US$1.09m
  • David Spector (56yo)

    CEO, President & Trustee

    • Tenure: 2.8yrs
    • Compensation: US$747.99k
  • Greg Hendry (58yo)

    Chief Accounting Officer

    • Tenure: 0yrs
  • Doug Jones (62yo)

    Senior MD & Chief Mortgage Banking Officer

    • Tenure: 8.2yrs
    • Compensation: US$249.99k
  • Andrew Chang (42yo)

    Senior MD & CFO

    • Tenure: 2.8yrs
    • Compensation: US$249.99k
  • Jeff Grogin (59yo)

    Senior MD & Chief Administrative Officer

    • Tenure: 7.7yrs
    • Compensation: US$191.06k
  • David Walker (64yo)

    Senior MD & Chief Risk Officer

    • Tenure: 10.4yrs
    • Compensation: US$191.06k
  • Vandad Fartaj (44yo)

    Senior MD & Chief Investment Officer

    • Tenure: 9.6yrs
    • Compensation: US$249.99k
  • Derek Stark

    Senior MD

    • Tenure: 1.7yrs
  • Christopher Oltmann

    Senior Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Stan Kurland (67yo)

    Executive Chairman

    • Tenure: 10.3yrs
    • Compensation: US$1.09m
  • Frank Willey (65yo)

    Independent Trustee

    • Tenure: 10.2yrs
    • Compensation: US$193.35k
  • Stacey Stewart (55yo)

    Independent Trustee

    • Tenure: 10.2yrs
    • Compensation: US$184.60k
  • David Spector (56yo)

    CEO, President & Trustee

    • Tenure: 2.8yrs
    • Compensation: US$747.99k
  • Marianne Sullivan (53yo)

    Independent Trustee

    • Tenure: 2.1yrs
    • Compensation: US$184.60k
  • Scott Carnahan (65yo)

    Independent Trustee

    • Tenure: 10.2yrs
    • Compensation: US$192.35k
  • Randall Hadley (75yo)

    Independent Lead Trustee

    • Tenure: 0yrs
    • Compensation: US$207.60k
  • Nancy McAllister (59yo)

    Independent Trustee

    • Tenure: 6.9yrs
    • Compensation: US$197.35k
  • Preston DuFauchard (62yo)

    Independent Trustee

    • Tenure: 6.9yrs
    • 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$1.973b
  • 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 Analysis2019/10/22 00:11
End of Day Share Price2019/10/21 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.