What does return on equity mean?

Trailing-twelve-month net income divided by average shareholders' equity (average of the start and end of the trailing-twelve-month window). Measures the profit generated on each dollar of shareholder capital.

PennyMac Financial Services, Inc. PFSI Return on equity

Discontinued — last reported Q4 '18

Return on equity at other companies

Rithm CapitalRITM

8.8%-0.9pp

Rocket CompaniesRKT

-1.2%-1.5pp

SoFi Technologies, Inc.SOFI

6.6%-1.1pp

First BanCorpFBP

19%+0.5pp

EFC

Ellington Financial Inc.EFC

10.3%+2.5pp

PennyMac Mortgage Investment TrustPMT

7.6%+1.2pp

Other financials

Income statement

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Revenue$545.0M+26.5%

Net income$82.3M+7.9%

EPS (diluted)$1.53+7.7%

Balance sheet

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Cash & equivalents$219.5M+4.0%

Total debt$72.4M+63.3%

Total assets$31.9B+33.8%

Cash flow

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Operating cash flow-$1.3B-226%

CapEx$2.3M+506%

Free cash flow-$1.3B-226%

Valuation

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Market cap$4.28B-11.5%

Enterprise value$4.13B-11.4%

P/E8.4×-5.4×

P/S2×-0.8×

Profitability

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Net margin23.5%+3.2pp

FCF margin-149.5%—

Returns & leverage

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Debt / equity1.4×—

Where this comes from

Calculated from PennyMac Financial Services, Inc.’s reported figures.

net income/total stockholders equity=8.3%

Based on trailing twelve months.

The official record: PennyMac Financial Services, Inc.’s 10-K, filed February 25, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does return on equity mean?: Trailing-twelve-month net income divided by average shareholders' equity (average of the start and end of the trailing-twelve-month window). Measures the profit generated on each dollar of shareholder capital.