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.
Balanced Resilience | PennyMac's dual-segment model showcases adaptability in volatile markets, offsetting production challenges with strong servicing performance |
Financial Headwinds | Q1 2025 results fell short of expectations, with net income and EPS declining, yet the company maintains a robust 91.5% gross profit margin |
Market Positioning | Despite a 4.2% YTD stock decline, analysts project significant upside with price targets ranging from $110 to $141 per share |
Future Prospects | Strategically poised for potential rate declines, PFSI anticipates leveraging its growing portfolio of higher-rate loans for improved profitability |
Metrics to compare | PFSI | Sector Sector - Average of metrics from a broad group of related Financial sector companies | Relationship RelationshipPFSIPeersSector | |
---|---|---|---|---|
P/E Ratio | 12.8x | −4.6x | 9.5x | |
PEG Ratio | 0.13 | −0.04 | 0.03 | |
Price/Book | 1.2x | 1.1x | 1.0x | |
Price / LTM Sales | 1.4x | 2.6x | 2.8x | |
Upside (Analyst Target) | 24.2% | −22.6% | 14.3% | |
Fair Value Upside | Unlock | −6.2% | 2.3% | Unlock |