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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Affirm Holdings, Inc.

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Mr. Cooper Group, Inc.

Air Lease Corp.

PennyMac Financial Services, Inc.

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Ryder System, Inc.

Blue Owl Capital Corp.

The Western Union Co.

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 24.64%, its profits have risen by 126.8% ; the PEG ratio of the company is 0.1

Market Beating performance in long term as well as near term

Along with generating 24.64% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

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.

-12.97%

1.49

32.36%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.87%

EBIT Growth (5y)

-9.88%

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

12.90%

Pledged Shares

Institutional Holding

65.96%

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

1.03

EV to EBIT

2.61

EV to EBITDA

2.49

EV to Capital Employed

1.04

EV to Sales

0.88

PEG Ratio

0.15

Dividend Yield

1.38%

ROCE (Latest)

39.92%

ROE (Latest)

11.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

10What is working for the Company

NET PROFIT(9M)

At USD 370.66 MM has Grown at 48.18%

RAW MATERIAL COST(Y)

Fallen by 0.42% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 29.7 times

NET SALES(Q)

Highest at USD 1,352.02 MM

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -3,685.63 MM

NET PROFIT(Q)

At USD 82.32 MM has Fallen at -34.28%

DEBT-EQUITY RATIO (HY)

Highest at 382.55 %

PRE-TAX PROFIT(Q)

At USD 104.69 MM has Fallen at -24.06%

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

Net Sales

Highest at USD 1,352.02 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 1,352.02 MM has Grown at 27.68%

over average net sales of the previous four periods of USD 1,058.91 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debtors Turnover Ratio

Highest at 29.7 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.42% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

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

Operating Cash Flow

Lowest at USD -3,685.63 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

At USD 82.32 MM has Fallen at -34.28%

over average net sales of the previous four periods of USD 125.27 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Pre-Tax Profit

At USD 104.69 MM has Fallen at -24.06%

over average net sales of the previous four periods of USD 137.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Debt-Equity Ratio

Highest at 382.55 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio