PennyMac Mortgage Investment Trust Common Shares of Beneficial Interest (PMT)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I ask whether a low price compensates for business risk. PennyMac Mortgage Investment Trust is a mortgage REIT with three segments: credit-sensitive strategies, interest-rate-sensitive strategies, and correspondent production. I see no durable moat in the provided data; it is a spread and credit business. The numbers show a turnaround: in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $30.9 million and diluted EPS was $0.23, after fiscal Q2 2025 net income of $7.5 million and diluted EPS of -$0.04. Fiscal Q1 2026 net income was $24.6 million and EPS $0.16. Yet annual earnings have declined: FY2023 EPS $1.63, FY2024 $1.37, FY2025 $0.99. At the close on 2026-10-13, price was $7.04, with FairStock calculations showing P/E 4.89, P/B 0.47, ROE 8.94%, ROCE 0.79%, D/E 12.39, and dividend yield 18.18%. The Piotroski F-Score is only 2/9, and the computed Lynch category is turnaround. A 0.47 P/B and 18% yield suggest pessimism; but high leverage and volatile earnings mean book value can shrink. Missing bank-specific measures include CET1, NIM, and combined ratio. That is a statistically cheap package, but cheapness alone is not safety. For Graham, the key question is whether the asset value is real and protected. I would require evidence of durable ROE and credit discipline before trusting the discount.

In plain English: PennyMac Mortgage Investment Trust owns U.S. mortgage-related investments, including mortgage-backed securities and credit-risk transfer agreements. It has returned to profit recently, but earnings have been uneven and the company uses a lot of borrowed money. At $7.04, the price looks low compared with its accounting value and reported earnings, so it may be cheap, but the risks are real.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer