PFSI Stock Analysis: PennyMac Finl Svcs | NYSE
Mortgage Finance | NYSE, USA | Market Cap: 3.074m USD | 12M Return: -50.1% | US70932M1071 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 40.9M
EPS Trend: 66.4%
Qual. Beats: -1
Rev. Trend: 94.2%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
PennyMac Financial Services, Inc. (PFSI) is a U.S.-based mortgage banking and investment management company that operates through two main segments: Production and Servicing. The Production segment originates, acquires, and sells residential mortgage loans-both conventional and government-insured or guaranteed loans-through correspondent, consumer direct, and broker direct channels. The Servicing segment handles loan administration, payment collection, escrow management, customer inquiries, and default-related activities such as loss mitigation, forbearance, and foreclosure supervision.
Founded in 2008 and headquartered in Westlake Village, California, the company has been publicly traded on the NYSE since its 2013 IPO. As a participant in the GICS Commercial & Residential Mortgage Finance sub-industry, PennyMacs business model spans the full mortgage lifecycle, and its operations are typically sensitive to interest rate fluctuations, housing market conditions, and the volume of refinancing activity.
- Mortgage production volume declines as rates remain elevated
- Servicing fee income grows on larger MSR portfolio
- Gain on sale margins compress amid competitive pricing pressure
| Net Income: 392.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.05 > 0.02 and ΔFCF/TA 1.57 > 1.0 |
| NWC/Revenue: -317.3% < 20% (prev 135.6%; Δ -452.9% < -1%) |
| CFO/TA -0.05 > 3% & CFO -1.53b > Net Income 392.4m |
| Net Debt (23.0b) to EBITDA (576.5m): 39.91 < 3 |
| Current Ratio: 0.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (53.3m) vs 12m ago -0.72% < -2% |
| Gross Margin: 59.83% > 18% (prev 50.76%; Δ 9.06% > 0.5%) |
| Asset Turnover: 18.62% > 50% (prev 13.74%; Δ 4.88% > 0%) |
| Interest Coverage Ratio: 0.51 > 6 (EBIT TTM 506.2m / Interest Expense TTM 985.2m) |
| A: -0.54 (Total Current Assets 748.0m - Total Current Liabilities 16.7b) / Total Assets 29.9b |
| B: 0.14 (Retained Earnings 4.28b / Total Assets 29.9b) |
| C: 0.02 (EBIT TTM 506.2m / Avg Total Assets 27.0b) |
| D: 0.17 (Book Value of Equity 4.34b / Total Liabilities 25.5b) |
| Altman-Z'' = -2.74 = D |
| DSRI: 0.10 (Receivables 178.3m/12.1b, Revenue 5.04b/3.33b) |
| GMI: 0.85 (GM 50.76% / 59.83%) |
| AQI: 2.20 (AQ_t 0.97 / AQ_t-1 0.44) |
| SGI: 1.51 (Revenue 5.04b / 3.33b) |
| TATA: 0.06 (NI 392.4m - CFO -1.53b) / TA 29.9b) |
| Beneish M = -2.82 (Cap -4..+1) = A |
As of October 22, 2026, the stock is trading at USD 59.53 with a total of 471,823 shares traded. Over the past week, the price has changed by +3.08%, over one month by -10.62%, over three months by -28.85% and over the past year by -50.12%.
Current recommended Stop Loss: 56.70 (which is 4.8% or 1.3 ATR below the current price).
PennyMac Finl Svcs has received a consensus analysts rating of 3.88. Therefore, it is recommended to buy PFSI.
- StrongBuy: 3
- Buy: 1
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 82.3 | 38.2% |
P/E Trailing = 8.1431
P/E Forward = 8.9526
P/S = 0.9231
P/B = 0.7859
P/EG = 4.67
Revenue TTM = 5.04b USD
EBIT TTM = 506.2m USD
EBITDA TTM = 576.5m USD
Long Term Debt = 15.3b USD (from longTermDebt, last quarter)
Short Term Debt = 16.7b USD (from shortTermDebt, last quarter)
Debt = 23.8b USD (from shortLongTermDebtTotal, last quarter) + Leases 70.2m
Net Debt = 23.0b USD (calculated: Debt 23.8b - CCE 748.0m)
Enterprise Value = 26.1b USD (3.07b + Debt 23.8b - CCE 748.0m)
Interest Coverage Ratio = 0.51 (Ebit TTM 506.2m / Interest Expense TTM 985.2m)
EV/FCF = -16.83x (Enterprise Value 26.1b / FCF TTM -1.55b)
FCF Yield = -5.94% (FCF TTM -1.55b / Enterprise Value 26.1b)
FCF Margin = -30.78% (FCF TTM -1.55b / Revenue TTM 5.04b)
Net Margin = 7.79% (Net Income TTM 392.4m / Revenue TTM 5.04b)
Gross Margin = 59.83% ((Revenue TTM 5.04b - Cost of Revenue TTM 2.02b) / Revenue TTM)
Gross Margin QoQ = 43.49% (prev 47.91%)
Tobins Q-Ratio = 0.87 (Enterprise Value 26.1b / Total Assets 29.9b)
Interest Expense / Debt = 4.15% (Interest Expense 985.2m / Debt 23.8b)
Taxrate = 22.61% (114.6m / 507.0m)
NOPAT = 391.8m (EBIT 506.2m * (1 - 22.61%))
Current Ratio = 0.04 (Total Current Assets 748.0m / Total Current Liabilities 16.7b)
Debt / Equity = 5.48 (Debt 23.8b / totalStockholderEquity, last quarter 4.34b)
Debt / EBITDA = 39.91 (Net Debt 23.0b / EBITDA 576.5m)
Debt / FCF = -14.84 (negative FCF - burning cash) (Net Debt 23.0b / FCF TTM -1.55b)
Total Stockholder Equity = 4.29b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.45% (Net Income 392.4m / Total Assets 29.9b)
RoE = 9.14% (Net Income TTM 392.4m / Total Stockholder Equity 4.29b)
RoCE = 2.59% (EBIT 506.2m / Capital Employed (Equity 4.29b + L.T.Debt 15.3b))
RoIC = 1.32% (NOPAT 391.8m / Invested Capital 29.6b)
WACC = 3.74% (E(3.07b)/V(26.8b) * Re(7.88%) + D(23.8b)/V(26.8b) * Rd(4.15%) * (1-Tc(0.23)))
Discount Rate = 7.88% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 56.15 | Cagr: 0.13%
[DCF] Fair Price = unknown (Cash Flow -1.55b)
EPS Correlation: 66.40 | EPS CAGR: 21.60% | SUE: -0.97 | # QB: -1
Revenue Correlation: 94.17 | Revenue CAGR: 42.23% | SUE: 0.54 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.23 | Chg30d=-28.77% | Revisions=-40% | Analysts=6
EPS current Year (2026-12-31): EPS=6.61 | Chg30d=-7.58% | Revisions=-40% | GrowthEPS=-46.8% | GrowthRev=+5.7%
EPS next Year (2027-12-31): EPS=10.42 | Chg30d=-6.43% | Revisions=-25% | GrowthEPS=+57.8% | GrowthRev=+12.7%
[Analyst] Revisions Ratio: -62% (up=0, down=5)