PennyMac Financial ServicesPFSI +0.61%71 Gross Margin % is 47.91% as of Mar. 2026, which is 14% below its 10-year median of 55.48. GuruFocus rates PFSI with a GF Score™ of 71/100 and a GF Value™ of $137.55 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 44 Banks companies, PennyMac Financial Services ranks better than 72.73% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
PennyMac Financial Services had a gross margin of 47.91% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
PennyMac Financial Services Gross Margin % Related Terms
PennyMac Financial Services Gross Margin % 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 Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
PennyMac Financial Services (PFSI) has a Gross Margin % of 47.91% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PennyMac Financial Services and its competitors. This is 14% below median its historical median of 55.48. Over the past decade, PennyMac Financial Services' Gross Margin % has ranged from 48.11 to 70.01. According to the industry distribution chart, PennyMac Financial Services ranks #12 out of 44 companies in the Banks industry, placing it in the top 27.3%.
Is PennyMac Financial Services' Gross Margin % too high?
PennyMac Financial Services' current Gross Margin % of 47.91% is 14% below median its 10-year median of 55.48. Over the past 10 years, this metric has ranged from a low of 48.11 to a high of 70.01. The Banks industry median Gross Margin % is 41.02. PennyMac Financial Services' value of 47.91% is 16.8% above this industry median. Based on the distribution chart, PennyMac Financial Services ranks #12 out of 44 companies in the Banks industry, which is above the industry midpoint. 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' Gross Margin % compare to FMCC and WD?
According to the Banks industry distribution chart, PennyMac Financial Services ranks #12 out of 44 companies for Gross Margin %. This puts PennyMac Financial Services in the upper half of its industry. The industry median Gross Margin % is 41.02. PennyMac Financial Services' value of 47.91% is 16.8% above this benchmark. Historically, PennyMac Financial Services' own Gross Margin % has ranged from 48.11 to 70.01 over the past decade. While the company's 10-year median is 55.48 vs. the industry median of 41.02, 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 Gross Margin % for a Banks company?
The median Gross Margin % among Banks companies is 41.02, based on 44 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PennyMac Financial Services's current Gross Margin % of 47.91% is 16.8% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on PennyMac Financial Services and its competitors. For the Banks industry, the median Gross Margin % is 41.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PennyMac Financial Services's current Gross Margin % is 47.91%, which is 14% below median its own 10-year median of 55.48. 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 $83.86 — trading 39% below its estimated fair value. The current Gross Margin % is 47.91%, which is 14% below median its 10-year median of 55.48 and 16.8% above the Banks industry median of 41.02. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For PennyMac Financial Services (PFSI), the current Gross Margin % is 47.91% 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 $83.86 is trading 39% below its estimated GF Value™ of $137.55.
GuruFocus considers PennyMac Financial Services to be Possible Value Trap.
Key valuation signals for PFSI:
Gross Margin %: 47.91% (14% below median its 10-year median of 55.48)
GF Value™: $137.55 vs. price of $83.86 (39% below fair value)
Industry Position: 16.8% above the Banks median (#12 of 44)
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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