PennyMac Financial Services, Inc.PFSI
NYSE•Financial Services•Mortgage Finance
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.
PennyMac Financial Services, In (PFSI) reported trailing twelve months revenue of $2.16B as of March 2026, a 25.7% increase year-over-year. Quarterly revenue reached $544.98M, reflecting continued top-line momentum.
PennyMac Financial Services, In generated $507.12M in TTM net income, with quarterly EBITDA of $118.20M. The operating margin contracted from 24.2% to 19.2%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (19.2%) and net margin (15.1%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 17.7% a year ago, reflecting increased costs or interest expense.
PFSI trades at a P/E of 8.5x (below the broader market average) and a P/S of 2.0x. The price-to-book ratio of 1.0x suggests the stock trades below its book value.
The company reported negative free cash flow of $-1.34B, indicating cash consumption over the period. The balance sheet shows $31.94B in total assets with $6.23B in long-term debt against $4.33B in stockholders equity for a debt-to-equity ratio of 1.4. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~25.8% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~9.0% on average, adequate but below the threshold typically associated with wide moats.
Only 1 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
TTM revenue has grown consistently (7 of 7 quarters up), with ~46.6% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 8.1% — watch for continued compression, which may signal competitive or cost pressure.
Free cash flow has been negative in 7 of the last 8 quarters — earnings are not translating to cash.
D/E ratio is 1.4 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
The last 4 consecutive quarters had negative FCF — the company is burning cash and may need external funding.
Shares outstanding rose 2.3% — mild dilution. Compare to earnings growth to assess net per-share impact.