PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust Fundamental Analysis
PennyMac Mortgage Investment Trust (PMT) shows moderate financial fundamentals with a PE ratio of 8.31, profit margin of 10.23%, and ROE of 6.79%. The company generates $1.2B in annual revenue with weak year-over-year growth of -97.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -150.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PMT's fundamental strength across five key dimensions:
Efficiency Score
WeakPMT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPMT trades at attractive valuation levels.
Growth Score
WeakPMT faces weak or negative growth trends.
Financial Health Score
WeakPMT carries high financial risk with limited liquidity.
Profitability Score
WeakPMT struggles to sustain strong margins.
Key Financial Metrics
Is PMT Expensive or Cheap?
P/E Ratio
PMT trades at 8.31 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PMT's PEG of 0.94 indicates potential undervaluation.
Price to Book
The market values PennyMac Mortgage Investment Trust at 0.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -13.66 times EBITDA. This is generally considered low.
How Well Does PMT Make Money?
Net Profit Margin
For every $100 in sales, PennyMac Mortgage Investment Trust keeps $10.23 as profit after all expenses.
Operating Margin
Core operations generate 73.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.79 in profit for every $100 of shareholder equity.
ROA
PennyMac Mortgage Investment Trust generates $0.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PennyMac Mortgage Investment Trust generates limited operating cash flow of $-3.91B, signaling weaker underlying cash strength.
Free Cash Flow
PennyMac Mortgage Investment Trust generates weak or negative free cash flow of $-3.91B, restricting financial flexibility.
FCF Per Share
Each share generates $-44.90 in free cash annually.
FCF Yield
PMT converts -3.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
10.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How PMT Stacks Against Its Sector Peers
| Metric | PMT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.31 | 24.42 | Better (Cheaper) |
| ROE | 6.79% | 679.00% | Weak |
| Net Margin | 10.23% | 4578.00% | Weak |
| Debt/Equity | 10.12 | -22.07 (disorted) | Distorted |
| Current Ratio | 0.03 | 14.99 | Weak Liquidity |
| ROA | 0.60% | -1370.00% (disorted) | Weak |
PMT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PennyMac Mortgage Investment Trust's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-94.00%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-35.29%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
17.61%
Industry Style: Income, Inflation Hedge, REIT
High Growth