Latest Ratios: P/E Ratio 8.8x · EV/EBITDA 208.7x · ROE 6.7%. (2010–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $761M | $1.1B | $1.1B | $1.7B | $1.1B | $1.7B | $1.7B | $2.0B | $1.3B | $1.2B | $1.3B |
| Enterprise Value | $19.6B | $19.9B | $12.9B | $11.9B | $12.4B | $12.8B | $1.2B | $11.0B | $7.3B | $5.1B | $6.1B |
| P/E Ratio → | 8.82 | 12.68 | 9.19 | 9.17 | — | 66.65 | 65.15 | 9.21 | 8.46 | 10.86 | 15.16 |
| P/S Ratio | 0.44 | 0.63 | 2.17 | 2.30 | — | 2.23 | 1.24 | 2.05 | 3.15 | 2.67 | 4.06 |
| P/B Ratio | 0.40 | 0.58 | 0.56 | 0.85 | 0.58 | 0.71 | 0.76 | 0.80 | 0.82 | 0.78 | 0.93 |
| P/FCF | — | — | — | 1.26 | 0.63 | — | 2.60 | — | — | 5.38 | — |
| P/OCF | — | — | — | 1.25 | 0.63 | — | 2.60 | — | — | 5.37 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 11.41 | 25.54 | 16.34 | — | 16.89 | 0.83 | 11.53 | 17.78 | 11.26 | 19.54 |
| EV / EBITDA | 208.74 | 212.26 | 12.54 | 21.24 | — | 18.59 | 0.90 | 10.45 | 22.39 | 14.30 | 33.19 |
| EV / EBIT | 14.21 | 212.26 | 12.54 | 9.27 | 470.98 | 18.59 | 0.90 | 57.65 | 21.78 | 38.95 | 94.24 |
| EV / FCF | — | — | — | 8.95 | 6.95 | — | 1.73 | — | — | 22.66 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 91.6% | 91.6% | 75.4% | 83.2% | 220.5% | 59.2% | 76.3% | 75.4% | 65.9% | 68.8% | 49.3% |
| Operating Margin | 79.0% | 79.0% | 65.7% | 76.9% | 253.9% | 52.0% | 73.0% | 70.1% | 56.4% | 60.5% | 37.8% |
| Net Profit Margin | 7.3% | 7.3% | 31.9% | 27.5% | 50.3% | 7.5% | 3.7% | 23.7% | 37.3% | 26.2% | 24.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.7% | 6.7% | 8.3% | 10.2% | -3.4% | 2.4% | 2.2% | 11.3% | 9.8% | 8.1% | 5.3% |
| ROA | 0.7% | 0.7% | 1.2% | 1.5% | -0.5% | 0.4% | 0.4% | 2.3% | 2.3% | 2.0% | 1.2% |
| ROIC | 6.0% | 6.0% | 1.9% | 3.3% | -2.1% | 2.7% | 7.8% | 5.3% | 2.7% | 3.5% | 1.5% |
| ROCE | 13.2% | 13.2% | 4.6% | 8.2% | -5.4% | 4.8% | 14.5% | 10.8% | 3.5% | 4.7% | 2.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 10.12 | 10.12 | 6.26 | 5.35 | 5.80 | 4.72 | 3.89 | 3.73 | 3.87 | 2.55 | 3.59 |
| Debt / EBITDA | 203.53 | 203.53 | 11.80 | 18.76 | — | 16.22 | 6.93 | 8.69 | 18.61 | 11.13 | 26.48 |
| Net Debt / Equity | — | 9.97 | 6.08 | 5.21 | 5.74 | 4.69 | -0.25 | 3.69 | 3.83 | 2.50 | 3.56 |
| Net Debt / EBITDA | 200.63 | 200.63 | 11.47 | 18.25 | — | 16.14 | -0.45 | 8.59 | 18.42 | 10.91 | 26.29 |
| Debt / FCF | — | — | — | 7.69 | 6.32 | — | -0.87 | — | — | 17.28 | — |
| Interest Coverage | 0.11 | 0.11 | 1.44 | 1.74 | 0.06 | 2.26 | 4.76 | 0.64 | 1.91 | 0.86 | 0.43 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.03 | 0.03 | — | — | — | 0.03 | 1.60 | 0.00 | 1.96 | 3.52 | 0.53 |
| Quick Ratio | 0.03 | 0.03 | — | — | — | 0.03 | 1.60 | 0.00 | 4.33 | 7.68 | 0.65 |
| Cash Ratio | 0.06 | 0.06 | 0.06 | 0.07 | 0.05 | 0.03 | 1.53 | 0.03 | 1.91 | 3.52 | 0.53 |
| Asset Turnover | — | 0.08 | 0.04 | 0.06 | -0.01 | 0.05 | 0.12 | 0.08 | 0.05 | 0.08 | 0.05 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 18.4% | 12.8% | 12.7% | 8.4% | 15.3% | 10.9% | 8.7% | 7.2% | 8.9% | 10.5% | 10.4% |
| Payout Ratio | 109.0% | 109.0% | 86.5% | 70.4% | — | 323.6% | 289.4% | 62.3% | 75.7% | 107.1% | 173.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.3% | 7.9% | 10.9% | 10.9% | — | 1.5% | 1.5% | 10.9% | 11.8% | 9.2% | 6.6% |
| FCF Yield | — | — | — | 79.4% | 157.5% | — | 38.4% | — | — | 18.6% | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 1.7% | 7.8% | 3.4% | 2.1% | 0.0% | 0.8% | 7.6% | 7.8% |
| Total Shareholder Yield | 18.4% | 12.8% | 12.7% | 10.1% | 23.1% | 14.3% | 10.8% | 7.2% | 9.8% | 18.1% | 18.2% |
| Shares Outstanding | — | $87M | $87M | $112M | $91M | $97M | $99M | $88M | $69M | $75M | $77M |
Includes 30+ ratios · 16 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying PMT stock.
PennyMac Mortgage Investment Trust's current P/E ratio is 8.8x. The historical average is 17.6x. This places it at the 33th percentile of its historical range.
PennyMac Mortgage Investment Trust's current EV/EBITDA is 208.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.8x.
PennyMac Mortgage Investment Trust's return on equity (ROE) is 6.7%. The historical average is 8.3%.
Based on historical data, PennyMac Mortgage Investment Trust is trading at a P/E of 8.8x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
PennyMac Mortgage Investment Trust's current dividend yield is 18.35% with a payout ratio of 109.0%.
PennyMac Mortgage Investment Trust has 91.6% gross margin and 79.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
PennyMac Mortgage Investment Trust's Debt/EBITDA ratio is 203.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Extreme leverage amplifies volatility
Metrics are mathematically derived from official filings.
Valuation Discount Amidst Earnings Opacity
PMT trades at a P/E of 9.61x and a P/B of 0.44x, a significant discount to peers like EFC (P/B 0.71x), suggesting the market is pricing in substantial risk or skepticism regarding the quality of its reported earnings and the sustainability of its 16.8% dividend yield.
The low P/B ratio indicates the market values PMT's assets at less than half their stated book value, a common signal of distrust in the valuation of mortgage-related assets like MSRs and CRTs. The high EV/EBITDA of 209.47x is likely distorted by non-cash fair-value adjustments and is not a meaningful valuation metric for this mREIT. Investors should focus on the implied cap rate and compare PMT's valuation to private transaction multiples in the MSR market to gauge if the public market discount is excessive.
NOI Margin Surge Masks Core Earnings Weakness
NOI margin has expanded dramatically to 93.1% in Q2 2026 from 3.7% a year prior, but this appears driven by volatile fair-value gains on the portfolio rather than sustainable operational improvement, as evidenced by the concurrent negative FCF margin of -6.2%.
The extreme volatility in NOI margin, swinging from negative to over 90%, is a hallmark of mark-to-market accounting on mortgage assets and does not reflect the underlying cash yield of the portfolio. The negative free cash flow margin indicates that the company's core operations are consuming cash, likely due to the high cost of financing its leveraged portfolio. This suggests that reported profitability is highly sensitive to interest rate movements and spread volatility, not operational efficiency.
Dividend Yield Appears Unsustainable Without Data
The 16.8% dividend yield is among the highest in the peer group, but the absence of recent FFO and AFFO data makes it impossible to assess coverage, a critical concern given the company's negative free cash flow margin and history of payout ratios exceeding 100% of AFFO.
The last reported FFO payout ratio was 82.8% in Q4 2024, but the subsequent lack of data prevents verification of sustainability. The negative FCF margin suggests the dividend is not being funded from core operations, raising questions about reliance on external financing or asset sales. Investors should monitor for any equity issuance, which would be a red flag that the dividend is being maintained at the expense of shareholder dilution.
Leverage at Extreme, Vulnerable Levels
The debt-to-equity ratio has ballooned to 12.37x in Q2 2026 from 6.26x in Q4 2024, a level that appears dangerously high and leaves minimal margin for error in a volatile rate environment, especially with interest coverage barely above 1.0x.
The doubling of leverage in 18 months, funded by a $22.9B debt load against a static $1.9B equity base, indicates aggressive balance sheet expansion that significantly increases refinancing and margin call risk. The interest coverage ratio of 1.05x suggests the company is barely generating enough operating income to cover its interest expenses, leaving almost no buffer for a rise in rates or a widening of credit spreads. This leverage profile makes the equity highly sensitive to even minor adverse movements in the value of the underlying mortgage assets.
Concentration in Volatile Mortgage Assets
PMT's portfolio is 100% concentrated in U.S. residential mortgage assets, with a strategic shift toward credit-sensitive instruments like MSRs and CRTs, which introduces significant valuation volatility and sensitivity to housing market fundamentals and GSE policy.
The shift in asset composition, evidenced by the surge in total assets and decline in cash, indicates a deliberate move into higher-yielding but more volatile credit and interest rate-sensitive strategies. This concentration means the portfolio's value is directly tied to U.S. housing credit performance, prepayment speeds, and the regulatory environment for Fannie Mae and Freddie Mac. Any deterioration in housing market health or a change in GSE capital requirements could simultaneously impair asset values and reduce the supply of new investment opportunities.
The Misleading P/E Ratio
The P/E ratio of 9.61x is the most commonly misapplied metric for PMT, as it is distorted by non-cash fair-value adjustments and depreciation-like charges that make GAAP net income a poor proxy for the cash earnings available to service debt and pay dividends.
For mortgage REITs, GAAP net income includes unrealized gains and losses on the portfolio that do not represent cash flow. The correct metric is P/FFO or P/AFFO, which add back these non-cash items. The absence of recent FFO data in the provided table makes it impossible to calculate these proper multiples, but the historical FFO/Net Income ratio has been as extreme as -267.53x, proving the distortion. Relying on P/E would lead to a fundamentally flawed valuation of the company's core earning power and dividend capacity.