PennyMac Mortgage Valuation

PMT Stock  USD 12.51  0.13  1.03%   
At this time, the company appears to be undervalued. PennyMac Mortgage holds a recent Real Value of $13.01 per share. The prevailing price of the company is $12.51. Our model determines the value of PennyMac Mortgage from analyzing the company fundamentals such as Operating Margin of 0.21 %, return on equity of 0.0669, and Shares Outstanding of 87.02 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting PennyMac Mortgage's valuation include:
Price Book
0.8172
Enterprise Value
20.5 B
Price Sales
1.5251
Forward PE
7.6394
Trailing PE
12.7677
Undervalued
Today
12.51
Please note that PennyMac Mortgage's price fluctuation is not too volatile at this time. Calculation of the real value of PennyMac Mortgage is based on 3 months time horizon. Increasing PennyMac Mortgage's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
PennyMac Mortgage's intrinsic value may or may not be the same as its current market price of 12.51, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  12.51 Real  13.01 Target  13.36 Hype  12.52
The intrinsic value of PennyMac Mortgage's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence PennyMac Mortgage's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
13.01
Real Value
15.08
Upside
Estimating the potential upside or downside of PennyMac Mortgage Investment helps investors to forecast how PennyMac stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of PennyMac Mortgage more accurately as focusing exclusively on PennyMac Mortgage's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.400.410.41
Details
Hype
Prediction
LowEstimatedHigh
10.4512.5214.59
Details
9 Analysts
Consensus
LowTarget PriceHigh
12.1513.3614.83
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use PennyMac Mortgage's intrinsic value based on its ongoing forecasts of PennyMac Mortgage's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against PennyMac Mortgage's closest peers.

PennyMac Mortgage Cash

258.37 Million

PennyMac Revenue by Product

PennyMac Mortgage Total Value Analysis

PennyMac Mortgage Investment is at this time expected to have company total value of 20.45 B with market capitalization of 1.1 B, debt of 19.09 B, and cash on hands of 349.38 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the PennyMac Mortgage fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
20.45 B
1.1 B
19.09 B
349.38 M

PennyMac Mortgage Investor Information

About 71.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.82. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. PennyMac Mortgage has Price/Earnings To Growth (PEG) ratio of 2.12. The entity last dividend was issued on the 26th of December 2025. Based on the measurements of operating efficiency obtained from PennyMac Mortgage's historical financial statements, PennyMac Mortgage Investment may be sliding down financialy. It has an above-average odds of going through some form of financial crisis next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.590.6058
Fairly Down
Pretty Stable

PennyMac Mortgage Asset Utilization

The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The newest return on assets of PennyMac implies not a very effective usage of assets in February.
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

PennyMac Mortgage Profitability Analysis

Based on the measurements of profitability obtained from PennyMac Mortgage's financial statements, PennyMac Mortgage Investment may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in March. Profitability indicators assess PennyMac Mortgage's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2009-12-31
Previous Quarter
58.3 M
Current Value
52.4 M
Quarterly Volatility
99.1 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Gross Profit is likely to gain to about 1.5 B in 2026, whereas Pretax Profit Margin is likely to drop 0.06 in 2026.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.660.908
Way Down
Pretty Stable
Net Profit Margin0.07630.0803
Notably Down
Slightly volatile
Operating Profit Margin0.590.6058
Fairly Down
Pretty Stable
For PennyMac Mortgage profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PennyMac Mortgage to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PennyMac Mortgage utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PennyMac Mortgage's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PennyMac Mortgage over time as well as its relative position and ranking within its peers.

PennyMac Mortgage Earnings per Share Projection vs Actual

The next projected EPS of PennyMac Mortgage is estimated to be 0.4075 with future projections ranging from a low of 0.4 to a high of 0.41. PennyMac Mortgage's most recent 12-month trailing earnings per share (EPS TTM) is at 0.99. Please be aware that the consensus of earnings estimates for PennyMac Mortgage Investment is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
PennyMac Mortgage is projected to generate 0.4075 in earnings per share on the 30th of June 2026. PennyMac Mortgage earnings estimates show analyst consensus about projected PennyMac Mortgage EPS (Earning Per Share). It derives the highest and the lowest estimates based on PennyMac Mortgage's historical volatility. Many public companies, such as PennyMac Mortgage, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

PennyMac Mortgage Earnings Estimation Breakdown

The calculation of PennyMac Mortgage's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of PennyMac Mortgage is estimated to be 0.4075 with the future projection ranging from a low of 0.4 to a high of 0.41. Please be aware that this consensus of annual earnings estimates for PennyMac Mortgage Investment is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
0.40
Lowest
Expected EPS
0.4075
0.41
Highest

PennyMac Mortgage Earnings Projection Consensus

Suppose the current estimates of PennyMac Mortgage's value are higher than the current market price of the PennyMac Mortgage stock. In this case, investors may conclude that PennyMac Mortgage is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and PennyMac Mortgage's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 30th of June 2026Current EPS (TTM)
951.06%
0.0
0.4075
0.99

PennyMac Mortgage Ownership Allocation

PennyMac Mortgage owns a total of 87.02 Million outstanding shares. The majority of PennyMac Mortgage Investment outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in PennyMac Mortgage to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in PennyMac Mortgage. Please pay attention to any change in the institutional holdings of PennyMac Mortgage as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.

PennyMac Mortgage Profitability Analysis

The company reported the last year's revenue of 1.59 B. Total Income to common stockholders was 160.2 M with profit before taxes, overhead, and interest of 597.74 M.

PennyMac Mortgage Past Distributions to stockholders

About PennyMac Mortgage Valuation

The stock valuation mechanism determines PennyMac Mortgage's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of PennyMac Mortgage based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of PennyMac Mortgage. We calculate exposure to PennyMac Mortgage's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of PennyMac Mortgage's related companies.
Last ReportedProjected for Next Year
Gross Profit1.4 B1.5 B
Pretax Profit Margin 0.06  0.06 
Operating Profit Margin 0.61  0.59 
Net Profit Margin 0.08  0.08 
Gross Profit Margin 0.91  0.66 
PennyMac Mortgage's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether PennyMac Mortgage's value is low or high relative to the company's performance and growth projections. Determining the market value of PennyMac Mortgage can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of PennyMac Mortgage represents a small ownership stake in the entity. As a stockholder of PennyMac, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

PennyMac Mortgage Dividends Analysis For Valuation

Dividends Paid is likely to drop to about 160.6 M in 2026. Dividend Yield is likely to drop to 0.1 in 2026. Price Earnings Ratio is likely to gain to 11.32 in 2026, despite the fact that Retained Earnings are likely to grow to (553.7 M).
Last ReportedProjected for Next Year
Dividends Paid208.3 M160.6 M
Dividend Yield 0.13  0.10 
Dividend Payout Ratio 1.09  0.86 
Dividend Paid And Capex Coverage Ratio(11.56)(10.98)
There are various types of dividends PennyMac Mortgage can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of PennyMac shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from PennyMac Mortgage Investment directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When PennyMac pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of PennyMac Mortgage by the value of the dividends paid out.

PennyMac Mortgage Growth Indicators

Investing in growth stocks can be very risky. If the company such as PennyMac Mortgage does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding87 M
Quarterly Earnings Growth Y O Y0.159
Forward Price Earnings7.6394

PennyMac Mortgage Current Valuation Indicators

PennyMac Mortgage's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final PennyMac Mortgage's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as PennyMac Mortgage, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use PennyMac Mortgage's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes PennyMac Mortgage's worth.

Additional Tools for PennyMac Stock Analysis

When running PennyMac Mortgage's price analysis, check to measure PennyMac Mortgage's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PennyMac Mortgage is operating at the current time. Most of PennyMac Mortgage's value examination focuses on studying past and present price action to predict the probability of PennyMac Mortgage's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PennyMac Mortgage's price. Additionally, you may evaluate how the addition of PennyMac Mortgage to your portfolios can decrease your overall portfolio volatility.