Stock fact sheet · data as of
PennyMac Financial Services, Inc. (PFSI): fair value, margin of safety and Wheel Score
Ticker symbol PFSI · Financial Services · Financial - Mortgages · United States · Blend
Is PFSI undervalued?
At 67.55 (close of 5 Nov 2026), PFSI trades 47% below the GLS average fair value of 127.68. That average comes from 7 models run on the latest filings, and 5 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns PennyMac Financial Services, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 7 models disagree widely: DDM gives 17.66 while GLS Growth gives 282.41. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for PFSI, so the nightly engine files it under Blend (value score 69, growth score 89, out of 100).
Nine valuation models for PFSI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 69.96 | +4% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 93.26 | +38% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 263.87 | +291% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 115.33 | +71% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 282.41 | +318% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 17.66 | -74% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 51.26 | -24% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -468.72 | -794% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 81.00 | +20% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - PFSI passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 6.7 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are thin or negative - ROIC 1.8%, ROE 11.6%, ROA 1.7% - with debt at 5.35 times equity and negative free cash flow. Debt of 5.35 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 1.78% at a payout ratio of 26%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Mortgage banking Production 71%, Mortgage banking Servicing 29% (quarter Q2 FY2026).
Institutional ownership scores 8/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 1.8% |
|---|---|---|---|
| GLS Moat | 6.7 / 10 | ROE | 11.6% |
| Debt / equity | 5.35 | ROA | 1.7% |
| Free-cash-flow yield | -46.9% | Payout ratio | 26% |
| Institutions | 8 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 46: Weak
PFSI scores 46 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 4, financially healthy - Piotroski 5/9 (under 6); and filter 6, no serious red flags - Red Flags score 45 (under 60), and the parts are thin too - value strong, premium strong, moat good, health fair, red flags weak, option trading fair, stability fair. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 39% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 14,819 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 475k shares a day on a market cap of $3.5B, with a beta of 1.48 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Fails | Red Flags score 45 (under 60) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 47% below fair value | |
| Premium | Strong | implied volatility 39% | |
| Moat | Good | moat 6.7/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Weak | Red Flags score 45/100 | |
| Option trading | Fair | 1,156 contracts a day, 14,819 open interest | |
| Stability | Fair | beta 1.48, $3.5B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for PFSI in the nightly calendar. The shares go ex-dividend on 16 Nov 2026 (0.3000 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Mortgages
The 12 companies below are the closest to PennyMac Financial Services, Inc. by market cap within the Financial - Mortgages industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| FMCKI Federal Home Loan Mortgage Corporation | 5.61 | 166.38 | +97% | 34No options | $3.1B |
| FMCCS Federal Home Loan Mortgage Corporation | 9.64 | 191.15 | +95% | 34No options | $2.9B |
| FMCCM Freddie Mac Non-Cum Variable Rate Pref | 9.31 | 189.13 | +95% | 34No options | $2.8B |
| FMCKK Freddie Mac 5% Non Cum. Pfd. | 9.33 | 189.25 | +95% | 29No options | $2.8B |
| FMCCN Federal Home Loan Mortgage Corporation | 9.36 | 189.43 | +95% | 34No options | $2.8B |
| FMCC Federal Home Loan Mortgage Corporation | 4.36 | 158.69 | +97% | 33No options | $2.8B |
| FMCKM Freddie Mac 5.57% Non-Cum. Perp. Pfd. | 5.86 | 167.92 | +97% | 28No options | $2.8B |
| FREJP Federal Home Loan Mortgage Corporation PFD 5.30% | 9.37 | 189.49 | +95% | 30No options | $2.8B |
| FMCCG Federal Home Loan Mortgage Corporation | 9.80 | 192.13 | +95% | 34No options | $2.8B |
| FMCCH Freddie Mac 5.1 % Non-Cum Pfd | 9.10 | 187.83 | +95% | 29No options | $2.8B |
| FREJO Federal Home Loan Mortgage Corporation PFD 5.1% SAL | 12.55 | 209.04 | +94% | 29No options | $2.8B |
| FMCCI Federal Home Loan Mortgage Corporation | 9.02 | 187.34 | +95% | 34No options | $2.8B |
⚖ Compare PFSI with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about PFSI
Is PFSI undervalued right now?
By the GLS models, yes: at 67.55 the stock is 47% below the average fair value of 127.68 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of PFSI and what does it mean?
PFSI scores 46 out of 100 (Weak) - it fails Wheel Trade Filters 4, 6. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for PFSI?
127.68 per share as of 5 Nov 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does PennyMac Financial Services, Inc. report earnings next?
No upcoming earnings date is recorded for PFSI in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does PFSI have listed options, and how liquid are they?
Yes. The nightly snapshot found 60 listed contracts with 14,819 open interest across all expiries and implied volatility of 39% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.