PennyMac Financial ServicesPFSI -1.60%71 Return-on-Tangible-Asset is 1.59% as of Mar. 2026, which is 38% below its 10-year median of 2.55. GuruFocus rates PFSI with a GF Score™ of 71/100 and a GF Value™ of $134.39 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,530 Banks companies, PennyMac Financial Services ranks better than 94.44% on this metric.
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
PennyMac Financial Services Return-on-Tangible-Asset Related Terms
PennyMac Financial Services Return-on-Tangible-Asset 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, FNMA: Return-on-Tangible-Asset Comparison
For the Mortgage Finance subindustry, PennyMac Financial Services's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 1.59% mean?
PennyMac Financial Services (PFSI) has a Return-on-Tangible-Asset of 1.59% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on PennyMac Financial Services and its competitors. This is 38% below median its historical median of 2.55. Over the past decade, PennyMac Financial Services' Return-on-Tangible-Asset has ranged from 1.30 to 9.11. According to the industry distribution chart, PennyMac Financial Services ranks #85 out of 1530 companies in the Banks industry, placing it in the top 5.6%.
Is PennyMac Financial Services' Return-on-Tangible-Asset too high?
PennyMac Financial Services' current Return-on-Tangible-Asset of 1.59% is 38% below median its 10-year median of 2.55. Over the past 10 years, this metric has ranged from a low of 1.30 to a high of 9.11. The Banks industry median Return-on-Tangible-Asset is 0.99. PennyMac Financial Services' value of 1.59% is 60.6% above this industry median. Based on the distribution chart, PennyMac Financial Services ranks #85 out of 1530 companies in the Banks industry, which is in the top quartile — a strong position 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' Return-on-Tangible-Asset compare to FMCC and WD?
According to the Banks industry distribution chart, PennyMac Financial Services ranks #85 out of 1530 companies for Return-on-Tangible-Asset. This places PennyMac Financial Services in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 0.99. PennyMac Financial Services' value of 1.59% is 60.6% above this benchmark. Historically, PennyMac Financial Services' own Return-on-Tangible-Asset has ranged from 1.30 to 9.11 over the past decade. While the company's 10-year median is 2.55 vs. the industry median of 0.99, 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 Return-on-Tangible-Asset for a Banks company?
The median Return-on-Tangible-Asset among Banks companies is 0.99, based on 1,530 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PennyMac Financial Services's current Return-on-Tangible-Asset of 1.59% is 60.6% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on PennyMac Financial Services and its competitors. For the Banks industry, the median Return-on-Tangible-Asset is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PennyMac Financial Services's current Return-on-Tangible-Asset is 1.59%, which is 38% below median its own 10-year median of 2.55. 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 $134.39, compared to a current price of $83.47 — trading 37.9% below its estimated fair value. The current Return-on-Tangible-Asset is 1.59%, which is 38% below median its 10-year median of 2.55 and 60.6% above the Banks industry median of 0.99. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For PennyMac Financial Services (PFSI), the current Return-on-Tangible-Asset is 1.59% 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 $83.47 is trading 37.9% below its estimated GF Value™ of $134.39.
GuruFocus considers PennyMac Financial Services to be Possible Value Trap.
Key valuation signals for PFSI:
Return-on-Tangible-Asset: 1.59% (38% below median its 10-year median of 2.55)
GF Value™: $134.39 vs. price of $83.47 (37.9% below fair value)
Industry Position: 60.6% above the Banks median (#85 of 1530)
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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