PennyMac Financial Services's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 14.38.
PennyMac Financial Services's Days Inventory for the
three
months ended in Mar. 2026 was 0.
PennyMac Financial Services's Days Payable for the
three
months ended in Mar. 2026 was 119.19.
Therefore, PennyMac Financial Services's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was -104.81.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
PennyMac Financial Services Cash Conversion Cycle Related Terms
PennyMac Financial Services Cash Conversion Cycle Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PFSI vs FMCC, WD, UWMC: Cash Conversion Cycle Comparison
For the Mortgage Finance subindustry, PennyMac Financial Services's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PennyMac Financial Services Cash Conversion Cycle vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
PennyMac Financial Services's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Cash Conversion Cycle of -104.81 mean?
PennyMac Financial Services (PFSI) has a Cash Conversion Cycle of -104.81 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on PennyMac Financial Services and its competitors.
Is PennyMac Financial Services' Cash Conversion Cycle too high?
PennyMac Financial Services' current Cash Conversion Cycle is -104.81. Overall, PennyMac Financial Services has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PennyMac Financial Services' Cash Conversion Cycle compare to FMCC and WD?
PennyMac Financial Services' Cash Conversion Cycle of -104.81 can be compared against companies in the Banks industry. The industry median Cash Conversion Cycle is 0.23. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Banks company?
The median Cash Conversion Cycle among Banks companies is 0.23, based on 44 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on PennyMac Financial Services and its competitors. For the Banks industry, the median Cash Conversion Cycle is 0.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PennyMac Financial Services's current Cash Conversion Cycle is -104.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PennyMac Financial Services stock overvalued right now?
Based on GuruFocus' analysis, PennyMac Financial Services (PFSI) is currently considered Possible Value Trap. The stock's GF Value™ is $137.55, compared to a current price of $84.56 — trading 38.5% below its estimated fair value. The current Cash Conversion Cycle is -104.81. PennyMac Financial Services' overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For PennyMac Financial Services (PFSI), the current Cash Conversion Cycle is -104.81 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PennyMac Financial Services (PFSI) Overvalued in 2026?
Based on GuruFocus' analysis, PennyMac Financial Services stock appears to be undervalued.
The current stock price of $84.56 is trading 38.5% below its estimated GF Value™ of $137.55.
GuruFocus considers PennyMac Financial Services to be Possible Value Trap.
Key valuation signals for PFSI:
Cash Conversion Cycle: -104.81
GF Value™: $137.55 vs. price of $84.56 (38.5% below fair value)
No single metric tells the full story. See the PFSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PennyMac Financial Services Inc is a specialty financial services firm with a comprehensive mortgage platform mainly focused on the production and servicing of U.S. residential mortgage loans. The firm is also engaged in managing investments related to the U.S. mortgage market and provides products and services that leverage technologies to support customers. The company operates through two reportable operating segments: production and servicing. The production segment performs loan origination, acquisition, and sale activities, while the servicing segment performs servicing and subservicing of loans, early buyout transactions, and servicing of loans sourced and managed for PMT. The majority of revenue comes from the production segment.
71GF Score
Get the complete analysis for PFSI
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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