PennyMac Mortgage Investment Trust (PMT) 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

The GEO Group, Inc.

Easterly Government Properties, Inc.

PennyMac Mortgage Investment Trust

Alexander & Baldwin, Inc.

Franklin BSP Realty Trust, Inc.

Safehold, Inc.

Two Harbors Investment Corp.

Uniti Group, Inc.

American Assets Trust, Inc.

Chimera Investment Corp.

Elme Communities

Why is PennyMac Mortgage Investment Trust ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 25.23%

Healthy long term growth as Operating profit has grown by an annual rate of 29.72%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD -5,242.19 MM
NET PROFIT(Q) At USD 40.63 MM has Fallen at -61.16%
NET SALES(9M) At USD 1,051.47 MM has Grown at -21.13%

With ROE of 21.99%, it has a very attractive valuation with a 0.57 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.29%, its profits have risen by 2.2% ; the PEG ratio of the company is 1.3
At the current price, the company has a high dividend yield of 965.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.29% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to PennyMac Mortgage Investment Trust should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is PennyMac Mortgage Investment Trust for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

PennyMac Mortgage Investment Trust

-6.29%

-0.28

26.31%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.45%

EBIT Growth (5y)

29.72%

EBIT to Interest (avg)

2.30

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

116.98%

Pledged Shares

Institutional Holding

77.58%

ROCE (avg)

63.08%

ROE (avg)

25.23%

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

0.57

EV to EBIT

0.57

EV to EBITDA

0.57

EV to Capital Employed

0.43

EV to Sales

0.43

PEG Ratio

1.32

Dividend Yield

965.84%

ROCE (Latest)

76.02%

ROE (Latest)

21.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

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

5What is working for the Company

NET SALES(HY)

At USD 795.16 MM has Grown at 30.52%

INVENTORY TURNOVER RATIO(HY)

Highest at 55.53 times

RAW MATERIAL COST(Y)

Fallen by -0.99% (YoY

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -5,242.19 MM

NET PROFIT(Q)

At USD 40.63 MM has Fallen at -61.16%

NET SALES(9M)

At USD 1,051.47 MM has Grown at -21.13%

DEBT-EQUITY RATIO (HY)

Highest at 754.77 %

INTEREST(Q)

Highest at USD 205.15 MM

EPS(Q)

Lowest at USD -0.04

Here's what is working for PennyMac Mortgage Investment Trust

Net Sales

At USD 795.16 MM has Grown at 30.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Inventory Turnover Ratio

Highest at 55.53 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -0.99% (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 Mortgage Investment Trust

Net Profit

At USD 40.63 MM has Fallen at -61.16%

over average net sales of the previous four periods of USD 104.61 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD -5,242.19 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)

Interest

At USD 205.15 MM has Grown at 12.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 205.15 MM

in the last five periods and Increased by 12.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

EPS

Lowest at USD -0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 754.77 %

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