PennyMac Mortgage Investment Trust 9.00% Senior Notes due 2030 (PMTW)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

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

I look at PMTW not as a common stock but as a senior note due 2030 with a 9.00% coupon, trading at $24.99 on 2026-10-13. The issuer, PennyMac Mortgage Investment Trust, invests in residential mortgage-related assets, including credit risk transfer agreements and mortgage-backed securities. That is a spread business, not a moat business: returns depend on credit, interest rates, and leverage. The filed figures show net income of $199.7M in FY2023, $161.0M in FY2024, and $127.9M in FY2025, so annual earnings have declined three years running. Diluted EPS fell from $1.63 to $1.37 to $0.99 over the same periods. Quarterly results are volatile: in fiscal Q3 2025, the quarter ended 2025-09-30, net income was $58.3M and diluted EPS was $0.55, while in fiscal Q2 2025, the quarter ended 2025-06-30, net income was $7.5M and diluted EPS was $-0.04. More recently, fiscal Q1 2026 earned $24.6M, or $0.16 per diluted share, and fiscal Q2 2026 earned $30.9M, or $0.23. The FairStock metrics at the 2026-10-13 close show P/B 1.66, ROE 8.94%, ROCE 0.79%, and a heavy D/E of 12.39. FairStock scores it 39/100 and classifies it as a TURNAROUND because it returned to profit after a loss within the last three years. For a senior note, the near-$25 price offers little price appreciation and no obvious margin of safety; the 9% coupon is the compensation for credit and rate risk. The company is profitable again, but high leverage and declining annual earnings make the note a credit play, not a bargain.

In plain English: This is a debt investment in PennyMac Mortgage Investment Trust, a company that invests in U.S. home mortgage-related assets. The company is profitable, but its yearly profits have been falling and it uses a lot of borrowed money. The note trades near $25, so the price looks fair for the 9% interest it pays, but the company's financial strength is only moderate.

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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