PennyMac Financial Services, In (PFSI) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

PennyMac Financial Services, In

NYSE•Financial Services•Mortgage Finance

$66.36-0.15(<0.01%)Market closed

Market Cap

$3.45B

P/E

8.8x

P/S

1.6x

P/B

0.8x

PennyMac Financial Services, Inc., through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. The company operates through two segments, Production and Servicing. The Production segment is involved in the origination, acquisition, and sale of loans. This segment also sources residential conventional and government-insured or guaranteed mortgage loans through correspondent production, consumer direct lending, and broker direct lending. The Servicing segment performs loan administration, collection, and default management activities, including the collection and remittance of loan payments; responds to customer inquiries; provides accounting for principal and interest; holds custodial funds for the payment of property taxes and insurance premiums; offers counseling for delinquent borrowers; and supervising foreclosures and property dispositions, as well as administers loss mitigation activities comprising modification and forbearance programs, and supervising foreclosures and property dispositions. The company was founded in 2008 and is headquartered in Westlake Village, California.

How this company scores

WeakMetricSide Score: 44/100

Grade capped at D — Interest coverage below 1× (0.1x) — earnings cannot cover interest. Strongest: Growth (20/25); weakest: Cash & Earnings Quality (2/25).

Profitability13/25

Growth20/25

Balance Sheet & Red Flags9/25

Cash & Earnings Quality2/25

Strengths

Growing revenueStrong marginsConsistent growth

Grade capped at D

Interest coverage below 1× (0.1x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 8.8x5y range 2.9x – 34.3x

Currently below its 20-quarter median.

P/S · 1.6x5y range 0.9x – 3.9x

Currently below its 20-quarter median.

P/B · 0.8x5y range 0.7x – 1.6x

Currently below its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Red Flag

Free cash flow has been negative in 6 of the last 8 quarters — earnings are not translating to cash.

Cash Burn

Red Flag

The last 4 consecutive quarters had negative FCF — the company is burning cash and may need external funding.

Price & Volume

Market Cap $3.45B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $2.21B
Q. Revenue: $496.96M
TTM EBITDA: $588.38M
TTM Op. Income: $507.00M
Q. Op. Income: $31.52M
TTM Net Income: $392.38M
Q. Net Income: $21.73M
EPS: $0.42
Shares Out.: $51.93M

$2.21B in TTM revenue grew 25.9% YoY, reaching $496.96M last quarter. TTM EBITDA of $588.38M and TTM operating income of $507.00M show growth is flowing through to the bottom line. TTM net income of $392.38M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 9.2%
Op. Margin: 6.3%
Net Margin: 4.4%

Op. margin of 6.3% is down 10.8% YoY — costs are rising relative to revenue. Net margin at 4.4% Across the last 8 quarters, operating margin has fallen for 3 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 8.8x
P/S Ratio: 1.6x
P/B Ratio: 0.8x

At 8.8x P/E, the stock trades below typical market levels. P/S of 1.6x and P/B of 0.8x provide additional context. P/E sits below typical market levels while revenue is growing. Over the past year, P/E is down 34% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $29.86B
Cash: $214.27M
Long-Term Debt: $6.33B
Book Value: $4.34B
D/E Ratio: 1.5
Debt/EBITDA: 137.8

With $29.86B in assets and $6.33B in long-term debt, D/E is 1.5and book value is $4.34B — moderate leverage. Over the past year, debt/equity is up 5% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $2.14B
TTM Free Cash Flow: $-1.80B
FCF Margin: -81.4%
FCF / Net Income: -4.6

TTM FCF of $-1.80B on $2.14B in operating cash flow. The FCF / Net Income ratio of -4.6x means the business consumes cash — it is not yet self-funding. Over the past year, free cash flow is down 12% — an improving trend.