Is PennyMac Finl Stock a Good Investment?
PennyMac Finl Investment Advice | PFSI |
- Examine PennyMac Finl's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research PennyMac Finl's leadership team and their track record. Good management can help PennyMac Finl navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Commercial & Residential Mortgage Finance space and any emerging trends that could impact PennyMac Finl's business and its evolving consumer preferences.
- Compare PennyMac Finl's performance and market position to its competitors. Analyze how PennyMac Finl is positioned in terms of product offerings, innovation, and market share.
- Check if PennyMac Finl pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about PennyMac Finl's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in PennyMac Finl Svcs stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if PennyMac Finl Svcs is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine PennyMac Finl Stock
Researching PennyMac Finl's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 36.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.46. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. PennyMac Finl Svcs last dividend was issued on the 18th of November 2024.
To determine if PennyMac Finl is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding PennyMac Finl's research are outlined below:
| PennyMac Finl Svcs generated a negative expected return over the last 90 days | |
| PennyMac Finl Svcs currently holds about 1.52 B in cash with (1.58 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 28.96. | |
| PennyMac Finl Svcs has a frail financial position based on the latest SEC disclosures | |
| Roughly 61.0% of the company shares are owned by institutional investors | |
| On 27th of November 2024 PennyMac Finl paid $ 0.3 per share dividend to its current shareholders | |
| Latest headline from zacks.com: Implied Volatility Surging for PennyMac Mortgage Investment Stock Options |
PennyMac Finl uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in PennyMac Finl Svcs. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to PennyMac Finl's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 1st of February 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 1st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact PennyMac Finl's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises PennyMac Finl's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2015-02-04 | 2014-12-31 | 0.47 | 0.41 | -0.06 | 12 | ||
2016-08-03 | 2016-06-30 | 0.57 | 0.65 | 0.08 | 14 | ||
2019-02-07 | 2018-12-31 | 0.54 | 0.63 | 0.09 | 16 | ||
2013-11-06 | 2013-09-30 | 0.37 | 0.28 | -0.09 | 24 | ||
2019-08-01 | 2019-06-30 | 0.78 | 0.92 | 0.14 | 17 | ||
2016-11-03 | 2016-09-30 | 0.92 | 1.06 | 0.14 | 15 | ||
2013-08-08 | 2013-06-30 | 0.59 | 0.43 | -0.16 | 27 | ||
2017-05-04 | 2017-03-31 | 0.64 | 0.47 | -0.17 | 26 |
Know PennyMac Finl's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as PennyMac Finl is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading PennyMac Finl Svcs backward and forwards among themselves. PennyMac Finl's institutional investor refers to the entity that pools money to purchase PennyMac Finl's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2024-09-30 | 647.8 K | Basswood Capital Management Llc | 2024-09-30 | 458.3 K | Charles Schwab Investment Management Inc | 2024-09-30 | 447.4 K | Northern Trust Corp | 2024-09-30 | 372.3 K | Norges Bank | 2024-06-30 | 362.1 K | American Century Companies Inc | 2024-09-30 | 341.9 K | Boston Partners Global Investors, Inc | 2024-09-30 | 331.1 K | Alyeska Investment Group, L.p. | 2024-09-30 | 329.3 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 321.2 K | Mfn Partners Management, Lp | 2024-06-30 | 4.5 M | T. Rowe Price Investment Management,inc. | 2024-09-30 | 4.5 M |
PennyMac Finl's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 5.48 B.Market Cap |
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PennyMac Finl's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.01 | |
| Return On Capital Employed | 0.08 | 0.11 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.04 | 0.04 |
Determining PennyMac Finl's profitability involves analyzing its financial statements and using various financial metrics to determine if PennyMac Finl is a good buy. For example, gross profit margin measures PennyMac Finl's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of PennyMac Finl's profitability and make more informed investment decisions.
Evaluate PennyMac Finl's management efficiency
The PennyMac Finl's current Return On Capital Employed is estimated to increase to 0.11, while Return On Tangible Assets are projected to decrease to 0.01. As of now, PennyMac Finl's Intangible Assets are increasing as compared to previous years. The PennyMac Finl's current Net Tangible Assets is estimated to increase to about 4.2 B, while Total Assets are projected to decrease to under 10.6 B. PennyMac Finl's management efficiency ratios could be used to measure how well PennyMac Finl manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 70.80 | 37.25 | |
| Tangible Book Value Per Share | (74.22) | (70.51) | |
| Enterprise Value Over EBITDA | 40.02 | 42.02 | |
| Price Book Value Ratio | 1.25 | 1.36 | |
| Enterprise Value Multiple | 40.02 | 42.02 | |
| Price Fair Value | 1.25 | 1.36 | |
| Enterprise Value | 4.9 B | 5.1 B |
Leadership at PennyMac Finl emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Dividend Yield 0.0112 | Forward Dividend Yield 0.0112 | Forward Dividend Rate 1.2 | Beta 1.791 |
Basic technical analysis of PennyMac Stock
As of the 28th of November, PennyMac Finl holds the Coefficient Of Variation of 2237.95, semi deviation of 1.55, and Risk Adjusted Performance of 0.0394. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of PennyMac Finl, as well as the relationship between them.PennyMac Finl's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific PennyMac Finl insiders, such as employees or executives, is commonly permitted as long as it does not rely on PennyMac Finl's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases PennyMac Finl insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
PennyMac Finl's Outstanding Corporate Bonds
PennyMac Finl issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. PennyMac Finl Svcs uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most PennyMac bonds can be classified according to their maturity, which is the date when PennyMac Finl Svcs has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US70932AAD54 Corp BondUS70932AAD54 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| PENNYMAC FINL SVCS Corp BondUS70932MAA53 | View | |
| US70932MAB37 Corp BondUS70932MAB37 | View | |
| US70932MAC10 Corp BondUS70932MAC10 | View |
Understand PennyMac Finl's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing PennyMac Finl's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0394 | |||
| Market Risk Adjusted Performance | 0.1186 | |||
| Mean Deviation | 1.25 | |||
| Semi Deviation | 1.55 | |||
| Downside Deviation | 1.6 | |||
| Coefficient Of Variation | 2237.95 | |||
| Standard Deviation | 1.58 | |||
| Variance | 2.49 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0) | |||
| Total Risk Alpha | (0.18) | |||
| Sortino Ratio | (0.03) | |||
| Treynor Ratio | 0.1086 | |||
| Maximum Drawdown | 7.68 | |||
| Value At Risk | (2.17) | |||
| Potential Upside | 2.33 | |||
| Downside Variance | 2.55 | |||
| Semi Variance | 2.4 | |||
| Expected Short fall | (1.32) | |||
| Skewness | (0.19) | |||
| Kurtosis | 0.1317 |
| Risk Adjusted Performance | 0.0394 | |||
| Market Risk Adjusted Performance | 0.1186 | |||
| Mean Deviation | 1.25 | |||
| Semi Deviation | 1.55 | |||
| Downside Deviation | 1.6 | |||
| Coefficient Of Variation | 2237.95 | |||
| Standard Deviation | 1.58 | |||
| Variance | 2.49 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0) | |||
| Total Risk Alpha | (0.18) | |||
| Sortino Ratio | (0.03) | |||
| Treynor Ratio | 0.1086 | |||
| Maximum Drawdown | 7.68 | |||
| Value At Risk | (2.17) | |||
| Potential Upside | 2.33 | |||
| Downside Variance | 2.55 | |||
| Semi Variance | 2.4 | |||
| Expected Short fall | (1.32) | |||
| Skewness | (0.19) | |||
| Kurtosis | 0.1317 |
Consider PennyMac Finl's intraday indicators
PennyMac Finl intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of PennyMac Finl stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
PennyMac Finl Corporate Filings
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 1st of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 29th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
PennyMac Stock media impact
Far too much social signal, news, headlines, and media speculation about PennyMac Finl that are available to investors today. That information is available publicly through PennyMac media outlets and privately through word of mouth or via PennyMac internal channels. However, regardless of the origin, that massive amount of PennyMac data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of PennyMac Finl news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of PennyMac Finl relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to PennyMac Finl's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive PennyMac Finl alpha.
PennyMac Finl Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards PennyMac Finl can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
PennyMac Finl Corporate Directors
| Emily Youssouf | Independent Director | Profile | |
| Anne McCallion | Director | Profile | |
| Lisa Shalett | Independent Director | Profile | |
| Daniel Perotti | Chief Financial Officer, Senior Managing Director | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PennyMac Finl Svcs. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Is Commercial & Residential Mortgage Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PennyMac Finl. If investors know PennyMac will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PennyMac Finl listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.27) | Dividend Share 1 | Earnings Share 3.18 | Revenue Per Share 54.823 | Quarterly Revenue Growth 4.826 |
The market value of PennyMac Finl Svcs is measured differently than its book value, which is the value of PennyMac that is recorded on the company's balance sheet. Investors also form their own opinion of PennyMac Finl's value that differs from its market value or its book value, called intrinsic value, which is PennyMac Finl's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PennyMac Finl's market value can be influenced by many factors that don't directly affect PennyMac Finl's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between PennyMac Finl's value and its price, as these two are different measures arrived at by various means. Investors typically determine if PennyMac Finl is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PennyMac Finl's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.