3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
PennyMac Financial Services's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 0.07%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for PennyMac Financial Services's 3-Year ROIIC % or its related term are showing as below:
FRA:1AC's 3-Year ROIIC % is ranked worse than 65.22% of 46
companies
in the Banks industry
Industry Median: 1.505
vs FRA:1AC: 0.07
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
PennyMac Financial Services 3-Year ROIIC % Related Terms
PennyMac Financial Services 3-Year ROIIC % 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.
FRA:1AC vs FMCC, WD, FNMA: 3-Year ROIIC % Comparison
For the Mortgage Finance subindustry, PennyMac Financial Services's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
PennyMac Financial Services (FRA:1AC) has a 3-Year ROIIC % of 0.07 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on PennyMac Financial Services and its competitors. This is 97% below median its historical median of 2.25. According to the industry distribution chart, PennyMac Financial Services ranks #30 out of 46 companies in the Banks industry, placing it in the top 65.2%.
Is PennyMac Financial Services' 3-Year ROIIC % too high?
PennyMac Financial Services' current 3-Year ROIIC % of 0.07 is 97% below median its 10-year median of 2.25. The Banks industry median 3-Year ROIIC % is 1.51. PennyMac Financial Services' value of 0.07 is 95.3% below this industry median. Based on the distribution chart, PennyMac Financial Services ranks #30 out of 46 companies in the Banks industry, which is below the industry midpoint. Overall, PennyMac Financial Services has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does PennyMac Financial Services' 3-Year ROIIC % compare to FMCC and WD?
According to the Banks industry distribution chart, PennyMac Financial Services ranks #30 out of 46 companies for 3-Year ROIIC %. This places PennyMac Financial Services in the lower half of its industry. The industry median 3-Year ROIIC % is 1.51. PennyMac Financial Services' value of 0.07 is 95.3% below this benchmark. While the company's 10-year median is 2.25 vs. the industry median of 1.51, PennyMac Financial Services has consistently been below 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 3-Year ROIIC % for a Banks company?
The median 3-Year ROIIC % among Banks companies is 1.51, based on 46 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PennyMac Financial Services's current 3-Year ROIIC % of 0.07 is 95.3% below 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on PennyMac Financial Services and its competitors. For the Banks industry, the median 3-Year ROIIC % is 1.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PennyMac Financial Services's current 3-Year ROIIC % is 0.07, which is 97% below median its own 10-year median of 2.25. 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?
PennyMac Financial Services (FRA:1AC) has a current 3-Year ROIIC % of 0.07. The stock's GF Value™ is €112.43, compared to a current price of €70.00 — trading 37.7% below its estimated fair value. The current 3-Year ROIIC % is 0.07, which is 97% below median its 10-year median of 2.25 and 95.3% below the Banks industry median of 1.51. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For PennyMac Financial Services (FRA:1AC), the current 3-Year ROIIC % is 0.07 as of Dec. 2025. 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 (FRA:1AC) Overvalued in 2026?
Based on GuruFocus' analysis, PennyMac Financial Services stock appears to be undervalued.
The current stock price of €70.00 is trading 37.7% below its estimated GF Value™ of €112.43.
Key valuation signals for FRA:1AC:
3-Year ROIIC %: 0.07 (97% below median its 10-year median of 2.25)
GF Value™: €112.43 vs. price of €70.00 (37.7% below fair value)
Industry Position: 95.3% below the Banks median (#30 of 46)
No single metric tells the full story. See the FRA:1AC 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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