The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Warning Sign:
Beneish M-Score -1.45 higher than -1.78, which implies that the company might have manipulated its financial results.
The historical rank and industry rank for PennyMac Financial Services's Beneish M-Score or its related term are showing as below:
PFSI'
s Beneish M-Score Range Over the Past 10 Years
Min: -4.85 Med: -1.69 Max: 16.76
Current: -1.45
During the past 13 years, the highest Beneish M-Score of PennyMac Financial Services was 16.76. The lowest was -4.85. And the median was -1.69.
PennyMac Financial Services Beneish M-Score Related Terms
PennyMac Financial Services Beneish M-Score 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: Beneish M-Score Comparison
For the Mortgage Finance subindustry, PennyMac Financial Services's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of PennyMac Financial Services for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.0858
+
0.528 * 0.9126
+
0.404 * 0.833
+
0.892 * 1.4087
+
0.115 * 1.2739
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9192
+
4.679 * 0.142989
-
0.327 * 1.032
=
-1.45
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(69.361 / (69.361 + 45.099))
/
(69.791 / (69.791 + 76.929))
=
0.605985
/
0.475675
=
1.2739
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(507.119 - -0.616
-
-4059.914)
/
31943.998
=
0.142989
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
PennyMac Financial Services has a M-score of -1.45 signals that the company is likely to be a manipulator.
PennyMac Financial Services (PFSI) has a Beneish M-Score of -1.45 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on PennyMac Financial Services and its competitors. According to the industry distribution chart, PennyMac Financial Services ranks #1346 out of 1396 companies in the Banks industry, placing it in the top 96.4%.
Is PennyMac Financial Services' Beneish M-Score too high?
PennyMac Financial Services' current Beneish M-Score is -1.45. Based on the distribution chart, PennyMac Financial Services ranks #1346 out of 1396 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' Beneish M-Score compare to FMCC and WD?
According to the Banks industry distribution chart, PennyMac Financial Services ranks #1346 out of 1396 companies for Beneish M-Score. This places PennyMac Financial Services in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score 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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on PennyMac Financial Services and its competitors. PennyMac Financial Services's current Beneish M-Score is -1.45. 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 $83.35 — trading 39.4% below its estimated fair value. The current Beneish M-Score is -1.45. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For PennyMac Financial Services (PFSI), the current Beneish M-Score is -1.45 as of Jun. 25, 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 $83.35 is trading 39.4% below its estimated GF Value™ of $137.55.
GuruFocus considers PennyMac Financial Services to be Possible Value Trap.
Key valuation signals for PFSI:
Beneish M-Score: -1.45
GF Value™: $137.55 vs. price of $83.35 (39.4% 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
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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