Recent News
On October 21, 2025 PennyMac announced a strategic sale of a $12 billion unpaid principal balance mortgage-servicing-rights (MSR) portfolio to Annaly Capital Management while retaining all subservicing and recapture rights; the company also issued $650 million of unsecured senior notes due 2034, issued $300 million of MSR-secured term notes, repurchased 50,300 shares, and declared a $0.30 quarterly cash dividend.
Technical Analysis
ADX at 25.79 indicates a strong underlying trend; that strength supports the view that recent directional moves carry weight for the near term.
DI+ reported at 28.66 with a dip & reversal, and DI- at 20.02 with a peak & reversal; both directional signals align toward bullish pressure and suggest buying dominance among directional indicators.
MACD sits at 1.64 with a dip & reversal and a signal line at 1.21; MACD currently trades above its signal line, which constitutes a bullish momentum confirmation that supports continuation of the recent advance.
MRO registered -12.08 (dip & reversal); with MRO negative, price lies below the model target, implying potential for mean reversion upward rather than immediate exhaustion.
RSI at 59.58 with a dip & reversal indicates momentum recovering without overbought extremes, reinforcing a near-term bias that favors further upside before elevated readings emerge.
Price sits above key averages—close $128.55 versus the 20-day average $119.81 and the 200-day average $103.79—so moving-average context supports continued upward pressure; the 12-day EMA at $122.33 shows a recent dip & reversal aligned with momentum signals. Bollinger bands place the 1‑sigma upper band at $124.66, with price trading above that level but below the 2‑sigma upper band at $129.50, indicating strong but not extreme intraday volatility. SuperTrend lower support prints at $120.80, offering a nearby technical reference for price structure.
Fundamental Analysis
WMDST values the stock as over-valued; the valuation assessment finds support in capital structure, cash-flow, and margin dynamics despite operational positives.
Profitability: operating (EBIT) margin equals 8.25%, down 15.56% quarter-over-quarter and down 55.91% year-over-year. The EBIT margin sits below the industry peer low of 10.32%, reflecting compressed operating leverage relative to peers. Gross margin measures 51.89%, above the industry peer mean of 48.33% and near the industry peer median of 50.55%, indicating core product-level profitability remains healthy even as operating efficiency contracted.
Earnings and cash flow: reported EPS totaled $3.43 versus an estimate of $2.98, producing an EPS surprise of 15.10%, yet free cash flow registered negative $141,766,000 and free-cash-flow yield equals -2.70%, signaling cash generation shortfalls relative to desktop earnings. Cash-flow-to-earnings reads 119.60%, which shows operating cash covered net income in the period but failed to sustain positive free cash after investing and financing flows.
Revenue and growth: trailing revenue equals $931,582,000 with reported revenue growth at -12.92%; quarterly revenue change prints at -124.28% QoQ and -129.99% YoY by the supplied measures, reflecting volatile top-line movement that magnifies sensitivity to mortgage market cycles and lock volume timing.
Capital structure: total debt stands at $18.52 billion with net debt $18.36 billion; debt-to-assets measures 76.46% and debt-to-equity equals 4.59x—leverage materially exceeds the industry peer high of 34.63% on a debt-to-assets basis and exceeds the industry peer high on debt-to-equity. Interest coverage sits at 0.35x and declined quarter-over-quarter, underscoring funding-cost sensitivity in the current rate environment.
Returns: return on equity equals 3.38% (up QoQ), slightly above the industry peer mean of 3.13% and in line with the industry peer median of 3.32%, while return on assets sits at 0.57%, above the industry peer mean of 0.29%. Earnings growth prints positive over the trailing annual window at 54.51% by the supplied measure, though sequential metrics show notable volatility.
Capital allocation: dividend payout ratio equals 11.58% and dividend coverage stands at 8.63x, supporting the company’s $0.30 quarterly payout; share repurchases during the period occurred at modest scale relative to market cap. Liquidity totals near $624,448,000 in cash and short-term investments, supplemented by additional facility availability reported by management.
Valuation context: multiples read PE ~23.07, price-to-book ~1.30, and EV/Revenue and enterprise multiple metrics remain elevated; combined with high leverage and negative free cash flow, WMDST’s over-valued designation reflects premium pricing against balance-sheet and cash-generation risks.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-10-21 |
| NEXT REPORT DATE: | 2026-01-20 |
| CASH FLOW | Begin Period Cash Flow | $ 211.1 M |
| Operating Cash Flow | $ -131.31 M | |
| Capital Expenditures | $ -10.45 M | |
| Change In Working Capital | $ -18.57 M | |
| Dividends Paid | $ -15.81 M | |
| Cash Flow Delta | $ -48.91 M | |
| End Period Cash Flow | $ 162.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 931.6 M | |
| Forward Revenue | $ 308.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 448.1 M | |
| Depreciation | $ 18.4 M | |
| Depreciation and Amortization | $ 18.4 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 854.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 483.4 M | |
| EBITDA | $ 95.2 M | |
| EBIT | $ 76.9 M | |
| Operating Income | $ 76.9 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | $ 76.4 M | |
| Tax Provision | $ -60.02 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 136.5 M | |
| Net Income From Continuing Operations | $ 136.5 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.98 | |
| EPS Actual | $ 3.43 | |
| EPS Difference | $ 0.45 | |
| EPS Surprise | 15.101 % | |
| Forward EPS | $ 3.50 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 24.2 B | |
| Intangible Assets | $ 9.6 B | |
| Net Tangible Assets | $ -5.61 B | |
| Total Current Assets | $ 13.5 B | |
| Cash and Short-Term Investments | $ 624.4 M | |
| Cash | $ 162.2 M | |
| Net Receivables | $ 165.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 862.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 481.0 M | |
| Short-Term Debt | $ 7.3 B | |
| Total Current Liabilities | $ 8.9 B | |
| Net Debt | $ 18.4 B | |
| Total Debt | $ 18.5 B | |
| Total Liabilities | $ 20.2 B | |
| EQUITY | ||
| Total Equity | $ 4.0 B | |
| Retained Earnings | $ 4.0 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 78.04 | |
| Shares Outstanding | 51.672 M | |
| Revenue Per-Share | $ 18.03 | |
| VALUATION | Market Capitalization | $ 5.2 B |
| Enterprise Value | $ 23.1 B | |
| Enterprise Multiple | 243.024 | |
| Enterprise Multiple QoQ | 29.956 % | |
| Enterprise Multiple YoY | 256.495 % | |
| Enterprise Multiple IPRWA | PFSI: 243.024 high: 66.136 median: 66.136 mean: 63.961 low: -7.915 |
|
| EV/R | 24.841 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 6.007 | |
| Asset To Liability | 1.2 | |
| Debt To Capital | 0.821 | |
| Debt To Assets | 0.765 | |
| Debt To Assets QoQ | -0.101 % | |
| Debt To Assets YoY | 157.46 % | |
| Debt To Assets IPRWA | PFSI: 0.765 high: 0.346 mean: 0.099 median: 0.078 low: 0.003 |
|
| Debt To Equity | 4.593 | |
| Debt To Equity QoQ | -1.876 % | |
| Debt To Equity YoY | 162.391 % | |
| Debt To Equity IPRWA | PFSI: 4.593 high: 4.339 mean: 0.882 median: 0.509 low: -1.21 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.301 | |
| Price To Book QoQ | -1.661 % | |
| Price To Book YoY | 1.163 % | |
| Price To Book IPRWA | high: 2.214 PFSI: 1.301 mean: 1.182 median: 1.021 low: 0.433 |
|
| Price To Earnings (P/E) | 23.068 | |
| Price To Earnings QoQ | -67.228 % | |
| Price To Earnings YoY | -53.749 % | |
| Price To Earnings IPRWA | high: 112.418 mean: 40.585 median: 39.323 PFSI: 23.068 low: -19.014 |
|
| PE/G Ratio | 0.423 | |
| Price To Sales (P/S) | 5.631 | |
| Price To Sales QoQ | 16.649 % | |
| Price To Sales YoY | -14.437 % | |
| Price To Sales IPRWA | high: 26.993 mean: 11.336 median: 10.707 PFSI: 5.631 low: 1.333 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 27.819 | |
| Forward PE/G | 0.51 | |
| Forward P/S | 16.982 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.049 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.039 | |
| Asset Turnover Ratio QoQ | -9.528 % | |
| Asset Turnover Ratio YoY | 12.03 % | |
| Asset Turnover Ratio IPRWA | PFSI: 0.039 high: 0.03 mean: 0.013 median: 0.012 low: 0.003 |
|
| Receivables Turnover | 5.751 | |
| Receivables Turnover Ratio QoQ | -13.167 % | |
| Receivables Turnover Ratio YoY | 21.47 % | |
| Receivables Turnover Ratio IPRWA | PFSI: 5.751 high: 4.363 median: 2.477 mean: 2.174 low: 0.682 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 15.867 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.206 | |
| CapEx To Revenue | -0.011 | |
| CapEx To Depreciation | -0.569 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 15.2 B | |
| Net Invested Capital | $ 22.6 B | |
| Invested Capital | $ 22.6 B | |
| Net Tangible Assets | $ -5.61 B | |
| Net Working Capital | $ 4.5 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.07 | |
| Current Ratio | 1.505 | |
| Current Ratio QoQ | -3.83 % | |
| Current Ratio YoY | -3.247 % | |
| Current Ratio IPRWA | high: 1.608 PFSI: 1.505 mean: 0.661 median: 0.561 low: 0.355 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 194.498 | |
| Cost Of Debt | 0.934 % | |
| Interest Coverage Ratio | 0.353 | |
| Interest Coverage Ratio QoQ | -26.463 % | |
| Interest Coverage Ratio YoY | -45.151 % | |
| Interest Coverage Ratio IPRWA | high: 29.372 mean: 13.471 median: 8.402 PFSI: 0.353 low: -6.013 |
|
| Operating Cash Flow Ratio | 0.018 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 112.922 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 8.633 | |
| Dividend Payout Ratio | 0.116 | |
| Dividend Rate | $ 0.31 | |
| Dividend Yield | 0.003 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.462 % | |
| Revenue Growth | -12.916 % | |
| Revenue Growth QoQ | -124.282 % | |
| Revenue Growth YoY | -129.989 % | |
| Revenue Growth IPRWA | high: 30.085 % mean: 10.114 % median: 4.21 % low: -10.179 % PFSI: -12.916 % |
|
| Earnings Growth | 54.513 % | |
| Earnings Growth QoQ | -300.57 % | |
| Earnings Growth YoY | -314.593 % | |
| Earnings Growth IPRWA | high: 133.333 % PFSI: 54.513 % mean: 9.075 % median: 7.182 % low: -81.818 % |
|
| MARGINS | ||
| Gross Margin | 51.894 % | |
| Gross Margin QoQ | -19.2 % | |
| Gross Margin YoY | 5.484 % | |
| Gross Margin IPRWA | PFSI: 51.894 % high: 50.545 % median: 50.545 % mean: 48.334 % low: 19.292 % |
|
| EBIT Margin | 8.251 % | |
| EBIT Margin QoQ | -15.556 % | |
| EBIT Margin YoY | -55.91 % | |
| EBIT Margin IPRWA | high: 83.81 % mean: 47.777 % median: 33.697 % low: 10.316 % PFSI: 8.251 % |
|
| Return On Sales (ROS) | 8.251 % | |
| Return On Sales QoQ | -15.556 % | |
| Return On Sales YoY | -55.91 % | |
| Return On Sales IPRWA | high: 33.697 % median: 33.697 % mean: 31.282 % PFSI: 8.251 % low: -107.373 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -141.77 M | |
| Free Cash Flow Yield | -2.703 % | |
| Free Cash Flow Yield QoQ | -113.187 % | |
| Free Cash Flow Yield YoY | -88.413 % | |
| Free Cash Flow Yield IPRWA | high: 11.343 % median: 2.454 % mean: 0.657 % PFSI: -2.703 % low: -15.511 % |
|
| Free Cash Growth | -113.394 % | |
| Free Cash Growth QoQ | -23.94 % | |
| Free Cash Growth YoY | -623.978 % | |
| Free Cash Growth IPRWA | high: 562.614 % median: -14.706 % mean: -36.528 % PFSI: -113.394 % low: -637.309 % |
|
| Free Cash To Net Income | -1.039 | |
| Cash Flow Margin | 17.519 % | |
| Cash Flow To Earnings | 1.196 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.567 % | |
| Return On Assets QoQ | 85.902 % | |
| Return On Assets YoY | 19.368 % | |
| Return On Assets IPRWA | high: 0.656 % PFSI: 0.567 % mean: 0.289 % median: 0.237 % low: -0.212 % |
|
| Return On Capital Employed (ROCE) | 0.503 % | |
| Return On Equity (ROE) | 0.034 | |
| Return On Equity QoQ | 73.183 % | |
| Return On Equity YoY | 26.08 % | |
| Return On Equity IPRWA | high: 0.07 PFSI: 0.034 median: 0.033 mean: 0.031 low: -0.011 |
|
| DuPont ROE | 3.439 % | |
| Return On Invested Capital (ROIC) | 0.269 % | |
| Return On Invested Capital QoQ | -22.029 % | |
| Return On Invested Capital YoY | -84.602 % | |
| Return On Invested Capital IPRWA | high: 3.585 % median: 2.991 % mean: 2.705 % low: 1.228 % PFSI: 0.269 % |
|