PennyMac Mortgage (PMT) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: 13.68%
• Average Volume (3M): 821.12K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.50
• Revenue Growth: -17.98%
• EPS Growth: -36.27%
• Country: US
• Employees: 7
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.55
• Shares Outstanding: 87,016,600
• 10 Day Avg. Volume: 999,170
• 30 Day Avg. Volume: 821,121
• PEG Ratio: -0.28
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 74.24
• P/FCF Ratio: -0.40
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $13.10
• Price Target Upside: 3.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: $13.00 ▲(2.52% Upside)

The overall stock score reflects a challenging financial environment with high leverage and declining revenue growth, partially offset by positive technical indicators and a strong dividend yield. The company's ability to manage debt and improve cash flow will be crucial for future performance.

Positive Factors

Successful Securitizations

Successful securitizations indicate strong market demand and effective capital management, enhancing liquidity and investment capacity.

Executive Leadership Appointments

New leadership appointments aim to optimize business execution and strategic focus, potentially driving long-term growth and stability.

Increased Correspondent Loan Acquisition Volume

Rising loan acquisition volume reflects strong operational performance and market positioning, supporting future revenue growth.

Negative Factors

High Leverage

High leverage poses financial stability risks, limiting flexibility and increasing vulnerability to interest rate changes.

Declining Revenue Growth

Declining revenue growth challenges long-term sustainability, necessitating strategic adjustments to improve financial performance.

Negative Operating Cash Flow

Negative operating cash flow indicates cash management challenges, potentially impacting liquidity and investment capabilities.

PennyMac Mortgage Business Overview & Revenue Model

Company Description

PennyMac Mortgage Investment Trust, a specialty finance company, primarily invests in mortgage-related assets in the United States. The company's Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, distressed loans, real estate, and non-agency subordinated bonds. Its Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency mortgage-backed securities (MBS), as well as related interest rate hedging activities. The company's Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS. PNMAC Capital Management, LLC acts as the manager of PennyMac Mortgage Investment Trust. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its shareholders. PennyMac Mortgage Investment Trust was founded in 2009 and is headquartered in Westlake Village, California.

How the Company Makes Money

PennyMac generates revenue primarily through the acquisition and management of mortgage-related assets, including mortgage loans and MSRs. The company earns income from the interest on loans it originates, as well as from servicing fees associated with managing the loans on behalf of investors. Additionally, PMT generates revenue through the sale of mortgage-backed securities, where it pools loans and sells them to investors, thereby earning a profit from the spread between the loan interest rates and the securities' yields. Key partnerships with financial institutions and a robust origination platform further enhance its revenue streams, allowing PMT to capitalize on market opportunities and manage risks effectively.

PennyMac Mortgage Financial Statement Overview

Summary

PennyMac Mortgage is facing financial challenges with declining revenues, high leverage, and negative cash flows. Despite strong gross profit and EBITDA margins, profitability is hindered by significant EBIT losses. The high debt burden may limit financial flexibility.

Income Statement

PennyMac Mortgage faced challenges in maintaining revenue stability, with a significant drop in total revenue to $406 million TTM from $725 million the previous year. The Gross Profit Margin is strong at 90.14%, indicating efficient cost management. However, the negative EBIT margin of -52.61% and the drop in net income to $123 million signal profitability issues. The EBITDA margin remains robust at 201.05%, showing good operational performance despite the earnings loss.

Balance Sheet

The debt-to-equity ratio of 1.82 suggests a high level of leverage, which could pose risks in economic downturns. The equity ratio is relatively low at 12.79%, indicating limited reliance on equity financing. Return on Equity (ROE) is positive at 6.47%, reflecting some profitability. The company's high debt levels could affect future growth and financial stability.

Cash Flow

The cash flow analysis shows challenges, with a negative free cash flow of -$2.97 billion TTM. Operating cash flow is negative, indicating potential cash management issues. Both operating and free cash flow ratios to net income are concerning, suggesting the company is struggling to convert earnings into cash effectively. This could impact liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	269.36M	14.72M	725.87M	-145.66M	1.32B	1.47B
Gross Profit	213.96M	1.94M	603.76M	-321.20M	985.98M	1.11B
EBITDA	1.09B	1.03B	1.28B	26.33M	688.32M	1.29B
Net Income	105.16M	160.98M	199.65M	-73.29M	56.85M	52.37M
Balance Sheet
Total Assets	16.80B	14.41B	13.11B	13.92B	13.77B	11.52B
Cash, Cash Equivalents and Short-Term Investments	471.49M	337.69M	409.42M	364.14M	1.93B	2.98B
Total Debt	14.55B	12.13B	4.85B	11.57B	11.22B	2.27B
Total Liabilities	14.94B	12.47B	11.16B	11.96B	11.41B	9.22B
Stockholders Equity	1.87B	1.94B	1.96B	1.96B	2.37B	2.30B
Cash Flow
Free Cash Flow	-5.22B	-2.73B	1.33B	1.78B	-2.79B	671.66M
Operating Cash Flow	-5.21B	-2.70B	1.34B	1.78B	-2.82B	671.66M
Investing Cash Flow	910.06M	1.36B	-21.73M	-1.87B	1.09B	-15.37M
Financing Cash Flow	4.54B	1.40B	-1.15B	135.89M	1.73B	-702.64M

PennyMac Mortgage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PMT, the sentiment is Positive. The current price of 12.68 is above the 20-day moving average (MA) of 11.94, above the 50-day MA of 11.87, and above the 200-day MA of 12.07, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.94 is Neutral, neither overbought nor oversold. The STOCH value of 45.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PMT.

PennyMac Mortgage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBRT	67 Neutral	$882.81M	10.98	6.74%	13.09%	-3.60%	19.31%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CIM	63 Neutral	$1.04B	10.25	7.32%	11.55%	4.83%	-25.07%
MFA	62 Neutral	$929.15M	10.34	6.90%	15.49%	-7.70%	40.36%
PMT	58 Neutral	$1.03B	16.33	6.38%	13.68%	-17.98%	-36.27%
ORC	52 Neutral	$1.09B	38.26	0.87%	19.28%	67.17%	―
TWO	50 Neutral	$1.01B	―	-14.78%	16.67%	-21.95%	-528.94%

PennyMac Mortgage Corporate Events

PennyMac Mortgage Investment Trust Reports Strong Q3 2025 Results

PennyMac Mortgage Investment Trust is a real estate investment trust (REIT) that primarily invests in residential mortgage loans and related assets, managed by PNMAC Capital Management, LLC, a subsidiary of PennyMac Financial Services, Inc.

PennyMac’s Earnings Call: Balancing Achievements and Challenges

The recent earnings call for PennyMac Mortgage Investment Trust (PMT) presented a balanced sentiment, highlighting significant achievements in securitizations and credit performance, while also addressing challenges such as a net loss and interest rate volatility. The discussion underscored the company’s strategic strengths and areas of concern, providing a comprehensive view of its current financial standing.

PennyMac Mortgage Investment Trust Reports Q2 2025 Results

PennyMac Mortgage Investment Trust is a mortgage real estate investment trust (REIT) that primarily invests in residential mortgage loans and mortgage-related assets. The company is managed by PNMAC Capital Management, LLC, a subsidiary of PennyMac Financial Services, Inc.