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PennyMac Financial ServicesPFSI +2.18%71 Debt-to-Equity is 5.95 as of Mar. 2026, which is 28% above its 10-year median of 4.65. GuruFocus rates PFSI with a GF Score™ of 71/100 and a GF Value™ of $130.73 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,423 Banks companies, PennyMac Financial Services ranks worse than 97.68% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for PennyMac Financial Services's Debt-to-Equity or its related term are showing as below:
PFSI'
s Debt-to-Equity Range Over the Past 10 Years
Min: 2.72 Med: 4.65 Max: 11.27
Current: 5.95
During the past 13 years, the highest Debt-to-Equity Ratio of PennyMac Financial Services was 11.27. The lowest was 2.72. And the median was 4.65.
PFSI's Debt-to-Equity is ranked worse than 97.68% of 1423
companies
in the Banks industry
Industry Median: 0.56
vs PFSI: 5.95
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
PennyMac Financial Services Debt-to-Equity Related Terms
PennyMac Financial Services Debt-to-Equity 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.
For the Mortgage Finance subindustry, PennyMac Financial Services's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's Debt-to-Equity falls into.
* 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.
PennyMac Financial Services (PFSI) has a Debt-to-Equity of 5.95 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on PennyMac Financial Services and its competitors. This is 28% above median its historical median of 4.65. Over the past decade, PennyMac Financial Services' Debt-to-Equity has ranged from 2.72 to 11.27. According to the industry distribution chart, PennyMac Financial Services ranks #1390 out of 1423 companies in the Banks industry, placing it in the top 97.7%.
Is PennyMac Financial Services' Debt-to-Equity too high?
PennyMac Financial Services' current Debt-to-Equity of 5.95 is 28% above median its 10-year median of 4.65. Over the past 10 years, this metric has ranged from a low of 2.72 to a high of 11.27. The Banks industry median Debt-to-Equity is 0.56. PennyMac Financial Services' value of 5.95 is 962.5% above this industry median. Based on the distribution chart, PennyMac Financial Services ranks #1390 out of 1423 companies in the Banks industry, which is in the bottom quartile relative to peers. 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' Debt-to-Equity compare to FMCC and WD?
According to the Banks industry distribution chart, PennyMac Financial Services ranks #1390 out of 1423 companies for Debt-to-Equity. This places PennyMac Financial Services in the lower half of its industry. The industry median Debt-to-Equity is 0.56. PennyMac Financial Services' value of 5.95 is 962.5% above this benchmark. Historically, PennyMac Financial Services' own Debt-to-Equity has ranged from 2.72 to 11.27 over the past decade. While the company's 10-year median is 4.65 vs. the industry median of 0.56, PennyMac Financial Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Banks company?
The median Debt-to-Equity among Banks companies is 0.56, based on 1,423 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PennyMac Financial Services's current Debt-to-Equity of 5.95 is 962.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on PennyMac Financial Services and its competitors. For the Banks industry, the median Debt-to-Equity is 0.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PennyMac Financial Services's current Debt-to-Equity is 5.95, which is 28% above median its own 10-year median of 4.65. 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 $130.73, compared to a current price of $86.83 — trading 33.6% below its estimated fair value. The current Debt-to-Equity is 5.95, which is 28% above median its 10-year median of 4.65 and 962.5% above the Banks industry median of 0.56. 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 Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For PennyMac Financial Services (PFSI), the current Debt-to-Equity is 5.95 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 $86.83 is trading 33.6% below its estimated GF Value™ of $130.73.
GuruFocus considers PennyMac Financial Services to be Possible Value Trap.
Key valuation signals for PFSI:
Debt-to-Equity: 5.95 (28% above median its 10-year median of 4.65)
GF Value™: $130.73 vs. price of $86.83 (33.6% below fair value)
Industry Position: 962.5% above the Banks median (#1390 of 1423)
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
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