PennyMac Financial ServicesPFSI +0.66%71 ROC (Joel Greenblatt) % is 535.25% as of Mar. 2026, which is 0% above its 10-year median of 532.65. GuruFocus rates PFSI with a GF Score™ of 71/100 and a GF Value™ of $137.25 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 47 Banks companies, PennyMac Financial Services ranks better than 80.85% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. PennyMac Financial Services's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 535.25%.
The historical rank and industry rank for PennyMac Financial Services's ROC (Joel Greenblatt) % or its related term are showing as below:
PFSI'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 10.7 Med: 532.65 Max: 2126.79
Current: 938.67
During the past 13 years, PennyMac Financial Services's highest ROC (Joel Greenblatt) % was 2126.79%. The lowest was 10.70%. And the median was 532.65%.
PFSI's ROC (Joel Greenblatt) % is ranked better than 80.85% of 47
companies
in the Banks industry
Industry Median: 70.66
vs PFSI: 938.67
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
* 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: ROC (Joel Greenblatt) % Comparison
For the Mortgage Finance subindustry, PennyMac Financial Services's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 535.25% mean?
PennyMac Financial Services (PFSI) has a ROC (Joel Greenblatt) % of 535.25% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on PennyMac Financial Services and its competitors. This is near median its historical median of 532.65. Over the past decade, PennyMac Financial Services' ROC (Joel Greenblatt) % has ranged from 10.70 to 2,126.79. According to the industry distribution chart, PennyMac Financial Services ranks #9 out of 47 companies in the Banks industry, placing it in the top 19.1%.
Is PennyMac Financial Services' ROC (Joel Greenblatt) % too high?
PennyMac Financial Services' current ROC (Joel Greenblatt) % of 535.25% is near median its 10-year median of 532.65. Over the past 10 years, this metric has ranged from a low of 10.70 to a high of 2,126.79. The Banks industry median ROC (Joel Greenblatt) % is 70.66. PennyMac Financial Services' value of 535.25% is 657.5% above this industry median. Based on the distribution chart, PennyMac Financial Services ranks #9 out of 47 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' ROC (Joel Greenblatt) % compare to FMCC and WD?
According to the Banks industry distribution chart, PennyMac Financial Services ranks #9 out of 47 companies for ROC (Joel Greenblatt) %. This places PennyMac Financial Services in the top 19% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 70.66. PennyMac Financial Services' value of 535.25% is 657.5% above this benchmark. Historically, PennyMac Financial Services' own ROC (Joel Greenblatt) % has ranged from 10.70 to 2,126.79 over the past decade. While the company's 10-year median is 532.65 vs. the industry median of 70.66, 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 ROC (Joel Greenblatt) % for a Banks company?
The median ROC (Joel Greenblatt) % among Banks companies is 70.66, based on 47 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PennyMac Financial Services's current ROC (Joel Greenblatt) % of 535.25% is 657.5% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on PennyMac Financial Services and its competitors. For the Banks industry, the median ROC (Joel Greenblatt) % is 70.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PennyMac Financial Services's current ROC (Joel Greenblatt) % is 535.25%, which is near median its own 10-year median of 532.65. 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 $137.25, compared to a current price of $86.72 — trading 36.8% below its estimated fair value. The current ROC (Joel Greenblatt) % is 535.25%, which is near median its 10-year median of 532.65 and 657.5% above the Banks industry median of 70.66. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For PennyMac Financial Services (PFSI), the current ROC (Joel Greenblatt) % is 535.25% 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 $86.72 is trading 36.8% below its estimated GF Value™ of $137.25.
GuruFocus considers PennyMac Financial Services to be Possible Value Trap.
Key valuation signals for PFSI:
ROC (Joel Greenblatt) %: 535.25% (near median its 10-year median of 532.65)
GF Value™: $137.25 vs. price of $86.72 (36.8% below fair value)
Industry Position: 657.5% above the Banks median (#9 of 47)
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
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PFSI has been successfully added to your 
