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PFSI 
PennyMac Finl Svcs Inc (PFSI)
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Upturn Advisory Summary
01/06/2026: PFSI (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
9 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $152
1 Year Target Price $152
| 4 | Strong Buy |
| 3 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 5.63% | Avg. Invested days 31 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 01/06/2026 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 7.02B USD | Price to earnings Ratio 14.52 | 1Y Target Price 152 |
Price to earnings Ratio 14.52 | 1Y Target Price 152 | ||
Volume (30-day avg) 9 | Beta 1.57 | 52 Weeks Range 85.03 - 137.53 | Updated Date 01/6/2026 |
52 Weeks Range 85.03 - 137.53 | Updated Date 01/6/2026 | ||
Dividends yield (FY) 0.89% | Basic EPS (TTM) 9.3 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 18.31% | Operating Margin (TTM) 23.04% |
Management Effectiveness
Return on Assets (TTM) 2.07% | Return on Equity (TTM) 12.55% |
Valuation
Trailing PE 14.52 | Forward PE 8.34 | Enterprise Value 25695729539 | Price to Sales(TTM) 2.58 |
Enterprise Value 25695729539 | Price to Sales(TTM) 2.58 | ||
Enterprise Value to Revenue 8.85 | Enterprise Value to EBITDA 41.56 | Shares Outstanding 51965474 | Shares Floating 27435692 |
Shares Outstanding 51965474 | Shares Floating 27435692 | ||
Percent Insiders 34.86 | Percent Institutions 63.96 |
Upturn AI SWOT
PennyMac Finl Svcs Inc
Company Overview
History and Background
PennyMac Financial Services, Inc. (PennyMac) was founded in 2004 by Stanford L. Kurland. It has rapidly grown from a mortgage lender to a diversified financial services provider. Key milestones include its IPO in 2013, significant expansion into servicing rights, and the establishment of its mortgage insurance and consumer lending divisions. The company has evolved through organic growth and strategic acquisitions, solidifying its position in the mortgage and financial services landscape.
Core Business Areas
- Mortgage Lending and Origination: PennyMac originates and purchases residential mortgage loans through its direct-to-consumer, broker, and correspondent channels. This segment focuses on producing high-quality loans for sale into the secondary mortgage market or for servicing.
- Mortgage Servicing: PennyMac services a vast portfolio of mortgage loans, collecting payments, managing escrow accounts, and handling customer service. This segment generates significant recurring revenue.
- Investment Management: Through its subsidiaries, PennyMac manages investment portfolios, primarily related to mortgage-backed securities and other real estate assets.
- Consumer Lending: This newer segment includes offerings like personal loans and other consumer credit products, diversifying PennyMac's revenue streams beyond traditional mortgages.
Leadership and Structure
PennyMac Financial Services, Inc. is led by a seasoned executive team with deep industry experience. Stanford L. Kurland serves as Executive Chairman. The company operates through various subsidiaries, including PennyMac Loan Services, LLC, and is structured to manage its diverse business lines effectively.
Top Products and Market Share
Key Offerings
- Mortgage Origination: PennyMac offers a wide range of mortgage products, including conventional, FHA, VA, and jumbo loans. While specific market share data for individual products is difficult to isolate, PennyMac consistently ranks among the top mortgage originators in the U.S. Competitors include Rocket Mortgage, United Wholesale Mortgage, loanDepot, and Wells Fargo.
- Mortgage Servicing: PennyMac is one of the largest residential mortgage servicers in the United States, managing a substantial portfolio of both FHA/VA and conventional loans. This recurring revenue business is a cornerstone of their operations. Key competitors in servicing include Mr. Cooper, Wells Fargo, and Ditech.
- Personal Loans: PennyMac's entry into the personal loan market offers unsecured consumer credit. This is a rapidly growing segment, and competitors include LendingClub, SoFi, and various traditional banks.
Market Dynamics
Industry Overview
The U.S. mortgage and financial services industry is characterized by significant competition, regulatory oversight, and sensitivity to interest rate environments. The market for mortgage origination is cyclical, driven by housing demand and refinancing activity. Mortgage servicing provides more stable, recurring revenue. The consumer lending sector is also competitive, with a growing demand for digital solutions.
Positioning
PennyMac is positioned as a leading non-bank financial services company with a strong focus on the mortgage lifecycle, from origination to servicing. Its competitive advantages include a robust technology platform, significant scale in servicing, and a diversified business model. The company leverages its operational efficiency and market expertise to navigate the complex financial landscape.
Total Addressable Market (TAM)
The total addressable market for residential mortgage origination in the U.S. is substantial, often exceeding $3 trillion annually depending on market conditions. The mortgage servicing market also represents hundreds of billions in unpaid principal balances. PennyMac, while a significant player, captures a fraction of this TAM, with opportunities for continued growth through market share gains and expansion into related financial services.
Upturn SWOT Analysis
Strengths
- Large and growing mortgage servicing portfolio providing stable recurring revenue.
- Diversified business model encompassing origination, servicing, and consumer lending.
- Strong operational efficiency and technological capabilities.
- Experienced management team with deep industry knowledge.
- Significant scale and market presence.
Weaknesses
- Exposure to interest rate risk impacting origination volumes.
- Reliance on the U.S. housing market and regulatory environment.
- Competition from well-established banks and agile fintech companies.
- Relatively newer player in the consumer lending space compared to some competitors.
Opportunities
- Expansion of consumer lending products and services.
- Leveraging technology to enhance customer experience and operational efficiency.
- Acquisition of additional servicing portfolios.
- Growth in the correspondent lending channel.
- Potential for geographic and product diversification.
Threats
- Rising interest rates could decrease mortgage origination and refinancing activity.
- Increased regulatory scrutiny and compliance costs.
- Economic downturns impacting housing market stability and borrower repayment ability.
- Intensified competition leading to margin compression.
- Cybersecurity threats and data breaches.
Competitors and Market Share
Key Competitors
- Rocket Companies, Inc. (RKT)
- United Wholesale Mortgage (UWMC)
- loanDepot, Inc. (LDI)
- Wells Fargo & Company (WFC)
- Mr. Cooper Group Inc. (COOP)
Competitive Landscape
PennyMac competes in a highly fragmented and competitive market. Its advantages lie in its scale, operational efficiency, and a robust servicing platform. However, it faces intense competition from other large non-bank lenders, traditional banks with established brands, and agile fintech companies. Price competition, technological innovation, and customer service are key differentiating factors.
Growth Trajectory and Initiatives
Historical Growth: PennyMac has demonstrated significant historical growth, largely driven by its expansion in mortgage servicing and origination. The company has strategically acquired servicing portfolios and expanded its origination channels to capture market share. Its diversification into consumer lending represents a more recent growth initiative.
Future Projections: Analyst projections for PennyMac's future growth typically focus on continued expansion in its core servicing business, potential for increased origination volumes in favorable market conditions, and the success of its burgeoning consumer lending segment. Growth is often tied to macroeconomic factors like interest rates and housing market activity. Specific projections can be found in analyst reports.
Recent Initiatives: Recent initiatives by PennyMac have included the expansion of its consumer lending platform, strategic acquisitions to bolster its servicing portfolio, and ongoing investments in technology to improve operational efficiency and customer experience. The company also focuses on optimizing its capital structure and returning value to shareholders.
Summary
PennyMac Financial Services Inc. is a strong player in the U.S. mortgage and financial services industry, primarily due to its extensive mortgage servicing operations which provide stable revenue. The company's diversified business model, efficient operations, and experienced leadership are significant strengths. However, it is susceptible to interest rate fluctuations and intense market competition. Continued growth will likely depend on its ability to innovate in consumer lending and adapt to evolving regulatory and economic landscapes.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Investor Relations Filings (SEC EDGAR)
- Financial News Outlets (e.g., Bloomberg, Wall Street Journal)
- Industry Research Reports
- Third-party Financial Data Providers
Disclaimers:
This analysis is based on publicly available information and is intended for informational purposes only. It does not constitute financial advice. Market share data is an estimation and can vary depending on the reporting source and methodology. Past performance is not indicative of future results. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About PennyMac Finl Svcs Inc
Exchange NYSE | Headquaters Westlake Village, CA, United States | ||
IPO Launch date 2013-05-09 | CEO & Chairman Mr. David A. Spector | ||
Sector Financial Services | Industry Mortgage Finance | Full time employees 5025 | Website https://pfsi.pennymac.com |
Full time employees 5025 | Website https://pfsi.pennymac.com | ||
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 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 servicing for newly originated loans that are under holding for sale and loans services for others. The 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. The company was founded in 2008 and is headquartered in Westlake Village, California.
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