PennyMac Financial Services, Inc. cash flow to debt ratio of -6.07% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

PennyMac Financial Services, Inc.'s free cash flow has increased -69.01% from $-4.56B last year to $-1.41B, signaling increasing performance

PennyMac Financial Services, Inc.'s debt to equity ratio is 5.46, which means that the company's assets are unhealthy financed, signaling financial risk.

PennyMac Financial Services, Inc.'s debt has increased relative to shareholder equity from 5.37 last year to 5.46 today, signaling weakened financials

PennyMac Financial Services, Inc. has a net debt to EBITDA ratio of 14.13x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

PennyMac Financial Services, Inc.'s interest coverage ratio is 0.97, which means that the company struggles to meet interest obligations, signaling financial risk.

PennyMac Financial Services, Inc.'s profit margin has decreased (35.39%) in the last year from 19.54% to 12.62%, signaling decreasing performance

PennyMac Financial Services, Inc.'s short-term liabilities of $16.20B exceed its short-term assets of $728.84M, signaling financial risk

PennyMac Financial Services, Inc.'s return on assets of 1.31% is lower than the 5.00% threshold, indicating inefficient asset utilization

PennyMac Financial Services, Inc.'s return on equity of 9.14%, is lower than 15.00%, indicating bad performance

PennyMac Financial Services, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

PennyMac Financial Services, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

PennyMac Financial Services, Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

PennyMac Financial Services, Inc. has negative free cash flow, indicating cash burn

PennyMac Financial Services, Inc.'s yearly earnings has increased 60.90% since last year from $311.42M to $501.08M, signaling increasing performance

PennyMac Financial Services, Inc.'s yearly revenue has increased 28.41% since last year from $1.59B to $2.05B, signaling increasing performance

ROIC 2.48% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

PennyMac Financial Services, Inc.'s 3-year revenue CAGR of 23.42% is positive, indicating growing revenue over the past 3 years

PennyMac Financial Services, Inc. had revenue growth in only 1 out of 5 years, indicating inconsistent revenue performance

PennyMac Financial Services, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

PennyMac Financial Services, Inc. has insufficient data to evaluate this check.

PennyMac Financial Services, Inc. has an earnings yield of 9.96%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

PennyMac Financial Services, Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

PennyMac Financial Services, Inc. has an EV/EBITDA ratio of 16.62x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

PennyMac Financial Services, Inc. is undervalued relative to its fair value price of 312.10 based on Earnings Fair Value model

PennyMac Financial Services, Inc.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

PennyMac Financial Services, Inc. has a price-to-book ratio of 0.91x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

PennyMac Financial Services, Inc. has a price-to-sales ratio of 1.27x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue