A Look At PennyMac Mortgage Investment Trust (PMT) Valuation After Profit Beat And Revenue
January 29, 2026
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PennyMac Mortgage Investment Trust (PMT) drew fresh attention after Q4 2025 results showed quarterly net income of US$52.36 million and earnings of US$0.48 per share, alongside a sharp year over year revenue decline.
See our latest analysis for PennyMac Mortgage Investment Trust.
That mix of stronger Q4 profitability and weaker revenue has coincided with a 12.21% 90 day share price return and a 19.06% 1 year total shareholder return, suggesting interest has picked up after a softer stretch earlier on.
If earnings quality is on your mind after PMT’s latest quarter, it could be a good moment to broaden your watchlist with fast growing stocks with high insider ownership.
With the share price now close to analyst targets and earnings stronger than the revenue line suggests, you have to ask: is PennyMac Mortgage Investment Trust still trading at a discount, or is the market already pricing in future growth?
At $13.51, PennyMac Mortgage Investment Trust sits slightly above the most followed fair value estimate of $13.43, putting a spotlight on the assumptions behind that gap.
The continued growth in U.S. household formation and the steady demand for residential mortgages, combined with PennyMac’s robust vertically integrated origination and servicing platform, position PMT to access a consistent pipeline of high-quality loans, supporting future revenue and earnings growth.
Curious how shrinking top line expectations sit next to sharply higher profit margins and earnings in this story? The narrative leans on efficiency, mix shift, and a different profit multiple by 2028. If you want to see how those moving parts add up to that $13.43 fair value, the full narrative lays it all out.
Result: Fair Value of $13.43 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, there is still the risk that higher interest rate or credit spread volatility erodes book value, or that dividends remain above earnings and pressure confidence.
Find out about the key risks to this PennyMac Mortgage Investment Trust narrative.
While the analyst narrative points to PennyMac Mortgage Investment Trust as about 1% overvalued relative to a $13.43 fair value, the current P/E of 14.7x tells a more mixed story. It sits below the US market at 19.1x, above the Mortgage REITs average of 12.8x, and close to its fair ratio of 15.2x. That tight cluster of numbers suggests limited room for error, so the key issue is whether future earnings will support even a modest premium.
See what the numbers say about this price — find out in our valuation breakdown.
If you are not fully on board with this story or you prefer to pull the numbers yourself and stress test the assumptions, you can sketch out your own view in just a few minutes with Do it your way.
A great starting point for your PennyMac Mortgage Investment Trust research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PMT.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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