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PennyMac Financial Services, Inc. (PFSI) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated today

PennyMac Financial Services, Inc.

PFSIMarket cap $3.19BPrice $61.3

Country🇺🇸United States

SectorFinancials

PennyMac originates and services home loans across America, making it one of the country's largest mortgage lenders. It doesn't rely on branch banking — most volume comes through correspondent lenders and brokers, letting it scale without the overhead of traditional banks.

In Bastion Portfolios?

52W Return-48%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+29%10

Revenue Forecast

Rev CAGR (1y)-36%1

Rev CAGR (3y)-8%1

Rev CAGR (5y)-4%1

Earnings Forecast

EPS Growth Y+1-19%2

EPS Growth Y+2+52%9

EPS Growth Y+3+8%6

Quality

Margins

EBIT Marginna–

Net Income Margin12%6

Free Cash Flow Margin-54%1

Debt

Net Debt/EBITDAna–

Efficiency

ROE9%4

ROA1%3

Earnings Stability44

GEAR+VERY WEAK15

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)710

P/E Ratio (Forward 3y)510

P/BV0.710

EV Multiples

EV/EBITDA Fwd010

EV/EBIT Fwd010

Yield

Free Cash Flow Yield0.0%10

Dividend Yield2.0%5

Momentum

Short term

1 month return-13%2

3 month return-25%1

YTD return-53%1

Mid term

Price vs 52wHigh39%1

1 year return-46%1

Long term

3 year return-6%2

5 year return+4%4

Risk Shield

Price Risk

Beta0.58

Volatility52%3

Free Cash Flow

Free Cash Flow Margin-54%1

Free Cash Flow Yield0.0%10

Quality

ROCE5%3

Earnings Stability44

Net Debt/EBITDAna–

02Growth

Is it actually growing, and how fast?

PFSIPennyMac Financial Services

Revenue FY25$4.4B

GROWTH RATING↗

VERY WEAK10 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+29%10

Revenue, next 1Y-36%1

Revenue, next 3Y, CAGR-8%1

Revenue, next 5Y, CAGR-4%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-19%2

EPS growth, FY27E+52%9

EPS growth, FY28E+8%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 29%/yr over the last 3 years, ahead of 90% of companies worldwide.10/10

WATCH

Earnings are set to grow faster than sales (EPS about 8%/yr vs revenue -8%/yr), so margins should widen. One year dips: EPS falls 19% next year.

WEAKNESSES

Growth is the weak spot here, trailing 90% of companies worldwide.

Revenue is set to shrink 8%/yr over the next 3 years, behind most of the market.1/10

Revenue grew 29%/yr over the last 3 years, but it is set to shrink 8%/yr from here.

Over five years revenue is set to shrink 4%/yr, behind 90% of companies worldwide.1/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business heading into decline. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK3 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-13%2

3-month return-25%1

YTD return-53%1

MID & LONG-TERM▾SCORE

% of 52-week high39%1

1-year return-46%1

3-year return-6%2

5-year return+4%4

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-5.7% over three years and +4.3% over five), behind 70% of the market.

It's down 46% over the past year, now 61% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-13%), over three months (-25%) and so far this year (-53%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on PennyMac Financial Services, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

PFSIPennyMac Financial Services

Revenue FY25$4.4B

GROWTH RATING↗

VERY WEAK10 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+29%10

Revenue, next 1Y-36%1

Revenue, next 3Y, CAGR-8%1

Revenue, next 5Y, CAGR-4%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-19%2

EPS growth, FY27E+52%9

EPS growth, FY28E+8%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 29%/yr over the last 3 years, ahead of 90% of companies worldwide.10/10

WATCH

Earnings are set to grow faster than sales (EPS about 8%/yr vs revenue -8%/yr), so margins should widen. One year dips: EPS falls 19% next year.

WEAKNESSES

Growth is the weak spot here, trailing 90% of companies worldwide.

Revenue is set to shrink 8%/yr over the next 3 years, behind most of the market.1/10

Revenue grew 29%/yr over the last 3 years, but it is set to shrink 8%/yr from here.

Over five years revenue is set to shrink 4%/yr, behind 90% of companies worldwide.1/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business heading into decline. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK3 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-13%2

3-month return-25%1

YTD return-53%1

MID & LONG-TERM▾SCORE

% of 52-week high39%1

1-year return-46%1

3-year return-6%2

5-year return+4%4

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-5.7% over three years and +4.3% over five), behind 70% of the market.

It's down 46% over the past year, now 61% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-13%), over three months (-25%) and so far this year (-53%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on PennyMac Financial Services, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community