Is PMT a high-quality business?

AlphaMadera's AlphaQuality grade scores PennyMac Mortgage Investment Trust on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how PMT compares to a Buffett-style quality bar.

What is PennyMac Mortgage Investment Trust's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to PMT based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes PMT a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

PMT - PennyMac Mortgage Investment Trust

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $12.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Real Estate Investment Trust

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for real estate investment trust businesses. Purely quantitative — no stock price or analyst input.

⚠ Negative tangible book value combined with negative free cash flow — balance sheet is impaired and operating cash generation cannot rebuild it.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 20%

F 21.8

Scored using FFO margin — REIT-archetype substitution.

FFO Margin 12.4% 22/100

Capital Efficiency

Weight: 15%

C 55.5

5yr Avg ROE 5.0% 35/100
5yr Share-Count CAGR -2.8% 93/100

Growth Quality

Weight: 15%

A+ 94.0

Scored using FFO/share — REIT-archetype substitution.

5yr FFO/Share CAGR 26.0% 100/100
Positive-FFO Years (5) 4/5 80/100

Cash Generation

Weight: 15%

F 0.0

Scored using AFFO dividend coverage — REIT substitution.

AFFO Dividend Coverage 0.00x 0/100
5yr FCF/NI -28.96x 0/100

Balance Sheet

Weight: 25%

F 0.5

Scored using Debt/Assets — REIT-archetype substitution.

Debt / Assets 89.4% 0/100
Interest Coverage (EBIT/Int) 0.11x 1/100

Stability

Weight: 10%

D 35.0

EPS Volatility (σ/μ) 0.55 26/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 3/5 40/100

Not enough curated-guru data to call a flow.

Laffont new
Wood sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — FFO Margin
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr FFO/Share CAGR, Positive-FFO Years (5)
Cash Generation (15%) — AFFO Dividend Coverage, 5yr FCF/NI
Balance Sheet (25%) — Debt / Assets, Interest Coverage (EBIT/Int)
Stability (10%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.