PFSIPennyMac Financial Services, Inc.

$59.90-52% 1Y

$59.90

$59.9052 weeks$158.38

Is the business good?

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More warning than reassurance: margins compressing and returns that lean on debt.

2 to watch, 2 without data

Margin direction, 3 years−1.3 pts

Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.

Where ROE comes from6.7× leverage

Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 11% = margin × turnover × leverage.

All from derived.

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

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