PennyMac Financial Services, Inc. (PFSI) stock analysis
Close on Nov 12, 2026Market cap $3.16BP/E 8.3Yield 1.98%
StockData Score
Prices as of Nov 12, 2026How the score works
Mixed13 of 30 checks passed
PennyMac Financial Services passes 13 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 3/6
- Past performance
- 1/6
- Financial health
- 4/6
- Dividend
- 3/6
What stands out
No debt
PennyMac Financial Services has no borrowings on its latest balance sheet.
Revenue growing 10%+ a year
Revenue grew 17.5% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 1.5% over the last twelve months, against a 5-year average of -21.2% a year.
Interest well covered
No meaningful interest expense to cover.
What to watch
Earnings shrank over 5 years
Net income shrank 21.2% a year on average over the last five fiscal years.
EPS growing under 10% a year
Diluted EPS grew 3.0% a year over the last three fiscal years.
Elevated bankruptcy risk
The Altman Z-score is 0.28; above 3 is the safe zone and below 1.8 the distress zone.
P/S above the industry
PennyMac Financial Services's price-to-sales of 86.94 is above the Non-depository Credit Institutions median of 1.79 (book value is negative, so we use sales).
Valuation2/6
P/E below its 5-year median
PennyMac Financial Services's P/E of 8.3 is below its own 5-year median of 12.5.
P/E below the industry
PennyMac Financial Services's P/E of 8.3 is below the Non-depository Credit Institutions median of 8.4.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/S above the industry
PennyMac Financial Services's price-to-sales of 86.94 is above the Non-depository Credit Institutions median of 1.79 (book value is negative, so we use sales).
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 17.5% a year over the last three fiscal years.
EPS growing under 10% a year
Diluted EPS grew 3.0% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 1.5% over the last twelve months, against a 5-year average of -21.2% a year.
Growing faster than the industry
Revenue grew 114% over the last twelve months; the Non-depository Credit Institutions median is 33.7%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
This company does not report gross profit.
Past performance1/6
Return on equity
Needs positive equity and five years of results.
Return on invested capital
Needs operating income and invested capital.
Return on equity against the industry
Needs positive equity.
Earnings shrank over 5 years
Net income shrank 21.2% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 1081% over the last twelve months, against a 5-year average of 4453%.
Net margin above the industry
PennyMac Financial Services's net margin of 1081% is above the Non-depository Credit Institutions median of 10.7%.
Financial health4/6
No debt
PennyMac Financial Services has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term liquidity
The balance sheet is not split into current and non-current items.
Elevated bankruptcy risk
The Altman Z-score is 0.28; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
PennyMac Financial Services paid dividends worth 2.0% of the share price over the last twelve months.
Yield below Treasuries
The 2.0% yield is below the 4.6% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.9% or more; PennyMac Financial Services yields 2.0%.
Dividend not cut
The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.
Covered by earnings
Dividends take 16.1% of net income.
Cash-flow cover
Needs dividends paid and free cash flow.
Fair value
How we estimate itWe don't publish a fair value for PennyMac Financial Services. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 12.5
- Non-depository Credit Institutions median 8.4
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $40.02M
- Value traded per 1% price move
- $22.31M
Downside
High risk
- Typical loss in a bad month
- 38.8%
- Volatility (annualized)
- 47%
- Sharpe ratio, 1 year
- -1.22
- Beta to the S&P 500 (5Y)
- 0.90
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2015 to 2025
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -25.2% | +17.5% | +24.4% | – | |
| Net income | +60.9% | +1.8% | -21.2% | – | |
| EPS, diluted | +59.2% | +3.0% | -15.0% | – | |
| Dividend per share | +20.0% | +14.5% | – | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on assets | – | 7.9% | 1.8% | |
| Capex to revenue | 2.3% | 158.4% | 59.3% | |
| Diluted shares | 77M | 79M | 54M |
Where the cash went
Fiscal 2021 to 2025, five years combined
PennyMac Financial Services generated $16.36B from operations and spent $1.73B on capital expenditure, dividends and share buybacks. 2% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2018 | 947.7% | 0.00× | 6.99× | 8.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$501.08M
- Cash generatingOperating cash flow above zero-$1.65B
- Return on assets improvedROA up on the prior year1.7% → 1.9%
- Earnings backed by cashOperating cash flow above net income-$1.65B vs $501.08M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise53M → 54M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.00 → 0.00
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