PennyMac Financial Services, In — Earnings Quality Grade F
PFSI · Financial Services
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 12 days, change -9 days YoY
AR growth -13.6% vs revenue growth 55.3%
Revenue 55.3%, CFFO 63.6%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 131.7% is >2x revenue growth 55.3%
SG&A/Gross Profit = 13.1%, excellent (<30%)
Gross margin swung +11.1pp (48.1% → 59.3%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF < 50% of Net Income for 3 years
Accruals ratio = 7.3%. Elevated
Cash $0.7B covers only 3% of debt $23.1B
Balance Sheet Health
Goodwill+Intangibles $9.7B = 225% of equity. Over 50%
Debt/EBITDA = 37.1x (>4x). Financial stress
Other assets 0.5% vs revenue 55.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Goodwill+Intangibles change 9% YoY. Normal
Manipulation Score
M-Score = -2.11 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score — Not Applicable
PennyMac Financial Services, In is a financial company. Z-Score is designed for non-financial companies.
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25