PennyMac Financial ServicesPFSI -1.60%71 5-Year Yield-on-Cost % is 2.69 as of Jul. 03, 2026, which is 31% above its 10-year median of 2.05. GuruFocus rates PFSI with a GF Score™ of 71/100 and a GF Value™ of $134.91 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,251 Banks companies, PennyMac Financial Services ranks worse than 70.74% on this metric.
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
PennyMac Financial Services 5-Year Yield-on-Cost % Related Terms
PFSI vs FMCC, WD, FNMA: 5-Year Yield-on-Cost % Comparison
For the Mortgage Finance subindustry, PennyMac Financial Services's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
PennyMac Financial Services (PFSI) has a 5-Year Yield-on-Cost % of 2.69 as of Jul. 03, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on PennyMac Financial Services and its competitors. This is 31% above median its historical median of 2.05. Over the past decade, PennyMac Financial Services' 5-Year Yield-on-Cost % has ranged from 0.60 to 3.80. According to the industry distribution chart, PennyMac Financial Services ranks #885 out of 1251 companies in the Banks industry, placing it in the top 70.7%.
Is PennyMac Financial Services' 5-Year Yield-on-Cost % too high?
PennyMac Financial Services' current 5-Year Yield-on-Cost % of 2.69 is 31% above median its 10-year median of 2.05. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 3.80. The Banks industry median 5-Year Yield-on-Cost % is 3.93. PennyMac Financial Services' value of 2.69 is 31.6% below this industry median. Based on the distribution chart, PennyMac Financial Services ranks #885 out of 1251 companies in the Banks industry, which is below the industry midpoint. 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' 5-Year Yield-on-Cost % compare to FMCC and WD?
According to the Banks industry distribution chart, PennyMac Financial Services ranks #885 out of 1251 companies for 5-Year Yield-on-Cost %. This places PennyMac Financial Services in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.93. PennyMac Financial Services' value of 2.69 is 31.6% below this benchmark. Historically, PennyMac Financial Services' own 5-Year Yield-on-Cost % has ranged from 0.60 to 3.80 over the past decade. While the company's 10-year median is 2.05 vs. the industry median of 3.93, 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 5-Year Yield-on-Cost % for a Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.93, based on 1,251 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PennyMac Financial Services's current 5-Year Yield-on-Cost % of 2.69 is 31.6% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on PennyMac Financial Services and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PennyMac Financial Services's current 5-Year Yield-on-Cost % is 2.69, which is 31% above median its own 10-year median of 2.05. 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 $134.91, compared to a current price of $83.47 — trading 38.1% below its estimated fair value. The current 5-Year Yield-on-Cost % is 2.69, which is 31% above median its 10-year median of 2.05 and 31.6% below the Banks industry median of 3.93. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For PennyMac Financial Services (PFSI), the current 5-Year Yield-on-Cost % is 2.69 as of Jul. 03, 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 38.1% below its estimated GF Value™ of $134.91.
GuruFocus considers PennyMac Financial Services to be Possible Value Trap.
Key valuation signals for PFSI:
5-Year Yield-on-Cost %: 2.69 (31% above median its 10-year median of 2.05)
GF Value™: $134.91 vs. price of $83.47 (38.1% below fair value)
Industry Position: 31.6% below the Banks median (#885 of 1251)
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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