Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. PennyMac Financial Services's annualized net income for the quarter that ended in Mar. 2026 was $329 Mil. PennyMac Financial Services's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-5,667 Mil. Therefore, PennyMac Financial Services's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for PennyMac Financial Services's Return-on-Tangible-Equity or its related term are showing as below:
PFSI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1273.89 Med: 1273.89 Max: 1273.89
Current: Negative Tangible Equity
During the past 13 years, PennyMac Financial Services's highest Return-on-Tangible-Equity was 1,273.89%. The lowest was 1,273.89%. And the median was 1,273.89%.
PFSI's Return-on-Tangible-Equity is ranked better than 99.93% of 1525
companies
in the Banks industry
Industry Median: 11.21
vs PFSI: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
PennyMac Financial Services Return-on-Tangible-Equity Related Terms
PennyMac Financial Services Return-on-Tangible-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.
PFSI vs FMCC, WD, FNMA: Return-on-Tangible-Equity Comparison
For the Mortgage Finance subindustry, PennyMac Financial Services's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-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 Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's Return-on-Tangible-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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
PennyMac Financial Services (PFSI) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on PennyMac Financial Services and its competitors. Over the past decade, PennyMac Financial Services' Return-on-Tangible-Equity has ranged from 1,273.89 to 1,273.89. According to the industry distribution chart, PennyMac Financial Services ranks #1 out of 1525 companies in the Banks industry, placing it in the top 0.099999999999994%.
Is PennyMac Financial Services' Return-on-Tangible-Equity too high?
PennyMac Financial Services' current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 1,273.89 to a high of 1,273.89. Based on the distribution chart, PennyMac Financial Services ranks #1 out of 1525 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-Equity compare to FMCC and WD?
According to the Banks industry distribution chart, PennyMac Financial Services ranks #1 out of 1525 companies for Return-on-Tangible-Equity. This places PennyMac Financial Services in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.21. Historically, PennyMac Financial Services' own Return-on-Tangible-Equity has ranged from 1,273.89 to 1,273.89 over the past decade. 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-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.21, based on 1,525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on PennyMac Financial Services and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.21 — 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-Equity is Negative Tangible Equity%. 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 $137.25, compared to a current price of $86.08 — trading 37.3% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For PennyMac Financial Services (PFSI), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 $86.08 is trading 37.3% below its estimated GF Value™ of $137.25.
GuruFocus considers PennyMac Financial Services to be Possible Value Trap.
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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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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