PFSIPennyMac Financial Services, Inc.
Mortgage Bankers & Loan Correspondents
- Revenue
- $20M
- 25% YoY
- Operating margin
- —
- EBITDA
- —
- Market cap
- $3.3B
- Employees
- —
- Net debt / EBITDA
- —
- $6.1B net debt
- AI in 10-K
- 2.5
- mentions per 10K words
Takeover score 4 of 13
Fixable underperformance 2 of 7
- TSR below peersNo2 of 5 years3+ of last 5 years
- High CEO pay despite TSRNo$11M medianMedian CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashYes-330% of net incomeCash flow under 80% of net income
- Dilutive SBCYes180% of revenueOver 10% of revenue
- Payouts exceed cash flowNo-4% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyNo—Over 40% of assets
- Shareholder dissentNo97% lowest supportAny vote under 80% support
Buyer economics 1 of 4
- Low revenue per employeeNo—Bottom quartile of its SIC industry
- Quiet on AINo2.5 per 10K words · 62nd pctBottom quartile of AI mentions in 10-Ks
- Net cashNo—More cash than debt, positive EBITDA
- Buyout-sizedYes$3.3B market capMarket cap $500M–$5B
Catalysts 1 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingYes−$17M netNet sales over $10M in 12 months
Financials
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $7M | $12M | $13M | $27M | $20M | 25% |
| Net income | $1.0B | $476M | $145M | $311M | $501M | 61% |
| Operating cash flow | $2.6B | $6.0B | −$1.6B | −$4.5B | −$1.7B | 64% |
| Capex | $8M | $7M | $1M | $2M | $12M | 595% |
| Stock-based comp | $38M | $43M | $28M | $21M | $36M | 74% |
| Buybacks | $958M | $406M | $71M | — | $5M | |
| Dividends | $53M | $55M | $41M | $52M | $63M | 20% |
Deal filings
None.
13D filers
| Filed | Filer | Form | Stake | Intent |
|---|---|---|---|---|
| Aug 8, 2022 | MFN Partners, LP | SC 13D/A | 8.6% | Active |
| Feb 9, 2022 | MFN Partners, LP | SC 13D/A | 7.4% | Active |
| Nov 23, 2021 | MFN Partners, LP | SC 13D/A | 6.4% | Active |
| Jun 25, 2021 | MFN Partners, LP | SC 13D | 5.3% | Active |
| Jun 10, 2020 | BlackRock Inc. | SC 13D/A | 0.6% | Passive |
| Feb 13, 2020 | BlackRock Inc. | SC 13D/A | 10.5% | Passive |
Insider trading
- Open-market buys, 12 mo
- $201K · 1
- Open-market sells, 12 mo
- $17M · 38
- Net
- −$17M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2025 | $13M | $18M | 213 | 198 |
| FY2024 | $11M | $10M | 164 | 153 |
| FY2023 | $7M | $15M | 140 | 140 |
| FY2022 | $10M | $7M | 89 | 96 |
| FY2021 | $14M | $17M | 108 | 117 |