PennyMac Financial Services, Inc. (PFSI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Affirm Holdings, Inc.

PennyMac Financial Services, Inc.

OneMain Holdings, Inc.

Credit Acceptance Corp.

Ryder System, Inc.

Blue Owl Capital Corp.

Mr. Cooper Group, Inc.

FirstCash Holdings, Inc.

The Western Union Co.

Air Lease Corp.

Hertz Global Holdings, Inc.

Why is PennyMac Financial Services, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 19.13%

Positive results in Jun 25

ROCE(HY) Highest at 10.05%
DIVIDEND PER SHARE(HY) Highest at USD 24.31
NET PROFIT(Q) Highest at USD 136.46 MM

With ROE of 8.92%, it has a attractive valuation with a 1.27 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 26.10%, its profits have risen by 126.8% ; the PEG ratio of the company is 0.1

Consistent Returns over the last 3 years

Along with generating 26.10% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to PennyMac Financial Services, Inc. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is PennyMac Financial Services, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

PennyMac Financial Services, Inc.

25.5%

1.56

32.36%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.35%

EBIT Growth (5y)

-2.86%

EBIT to Interest (avg)

4.52

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

24.48%

Dividend Payout Ratio

17.13%

Pledged Shares

Institutional Holding

65.55%

ROCE (avg)

48.79%

ROE (avg)

19.13%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.27

EV to EBIT

3.40

EV to EBITDA

3.22

EV to Capital Employed

1.32

EV to Sales

1.12

PEG Ratio

0.12

Dividend Yield

1.22%

ROCE (Latest)

38.81%

ROE (Latest)

8.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

ROCE(HY)

Highest at 10.05%

DIVIDEND PER SHARE(HY)

Highest at USD 24.31

NET PROFIT(Q)

Highest at USD 136.46 MM

EPS(Q)

Highest at USD 2.54

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 142.46

INVENTORY TURNOVER RATIO(HY)

Lowest at 17.84 times

INTEREST(Q)

Highest at USD 223.26 MM

PRE-TAX PROFIT(Q)

Lowest at USD 76.44 MM

Here's what is working for PennyMac Financial Services, Inc.

Net Profit

Highest at USD 136.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 136.46 MM has Grown at 56.68%

over average net sales of the previous four periods of USD 87.1 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.54

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Dividend per share

Highest at USD 24.31

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 18.36 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for PennyMac Financial Services, Inc.

Interest

At USD 223.26 MM has Grown at 14.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 142.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 76.44 MM has Fallen at -33.72%

over average net sales of the previous four periods of USD 115.33 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Interest

Highest at USD 223.26 MM

in the last five periods and Increased by 14.06% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD 76.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Inventory Turnover Ratio

Lowest at 17.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio