CHERRY HILL MORTGAGE INVESTM (CHMI) Stock Fundamental Analysis
NYSE:CHMI - New York Stock Exchange, Inc. - US1646511014 - REIT - Currency: USD
CHMI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. CHMI has a bad profitability rating. Also its financial health evaluation is rather negative. CHMI is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year CHMI was profitable.
CHMI had a positive operating cash flow in the past year.
In multiple years CHMI reported negative net income over the last 5 years.
CHMI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.17%, CHMI is doing worse than 79.10% of the companies in the same industry.
The Return On Equity of CHMI (-7.46%) is worse than 80.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.17% | ||
| ROE | -7.46% | ||
| ROIC | N/A |
ROA(3y)-0.74%
ROA(5y)-1.19%
ROE(3y)-4.01%
ROE(5y)-6.23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CHMI's Profit Margin has declined in the last couple of years.
In the last couple of years the Operating Margin of CHMI has declined.
The Gross Margin of CHMI (13.23%) is worse than 68.66% of its industry peers.
In the last couple of years the Gross Margin of CHMI has declined.
The Profit Margin and Operating Margin are not available for CHMI so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 13.23% |
OM growth 3Y-17.23%
OM growth 5YN/A
PM growth 3Y-26.59%
PM growth 5YN/A
GM growth 3Y-13.35%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for CHMI has been increased compared to 1 year ago.
Compared to 5 years ago, CHMI has more shares outstanding
The debt/assets ratio for CHMI is higher compared to a year ago.
2.2 Solvency
CHMI has an Altman-Z score of -1.05. This is a bad value and indicates that CHMI is not financially healthy and even has some risk of bankruptcy.
CHMI has a Altman-Z score of -1.05. This is amonst the worse of the industry: CHMI underperforms 94.03% of its industry peers.
CHMI has a debt to FCF ratio of 79.72. This is a negative value and a sign of low solvency as CHMI would need 79.72 years to pay back of all of its debts.
CHMI's Debt to FCF ratio of 79.72 is in line compared to the rest of the industry. CHMI outperforms 50.75% of its industry peers.
CHMI has a Debt/Equity ratio of 5.04. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CHMI (5.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.04 | ||
| Debt/FCF | 79.72 | ||
| Altman-Z | -1.05 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
CHMI has a Current Ratio of 0.05. This is a bad value and indicates that CHMI is not financially healthy enough and could expect problems in meeting its short term obligations.
CHMI has a worse Current ratio (0.05) than 83.58% of its industry peers.
A Quick Ratio of 0.05 indicates that CHMI may have some problems paying its short term obligations.
The Quick ratio of CHMI (0.05) is worse than 83.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
CHMI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.65%.
Measured over the past years, CHMI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -27.62% on average per year.
CHMI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.80%.
CHMI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.15% yearly.
EPS 1Y (TTM)-30.65%
EPS 3Y-28.34%
EPS 5Y-27.62%
EPS Q2Q%30.77%
Revenue 1Y (TTM)7.8%
Revenue growth 3Y29.32%
Revenue growth 5Y33.15%
Sales Q2Q%338.02%
3.2 Future
CHMI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.04% yearly.
Based on estimates for the next years, CHMI will show a very strong growth in Revenue. The Revenue will grow by 190.21% on average per year.
EPS Next Y40.36%
EPS Next 2Y29.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year443.63%
Revenue Next 2Y190.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.28, which indicates a rather cheap valuation of CHMI.
Based on the Price/Earnings ratio, CHMI is valued cheaper than 89.55% of the companies in the same industry.
CHMI is valuated cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.16, the valuation of CHMI can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHMI indicates a rather cheap valuation: CHMI is cheaper than 97.01% of the companies listed in the same industry.
CHMI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.28 | ||
| Fwd PE | 4.16 |
4.2 Price Multiples
85.07% of the companies in the same industry are more expensive than CHMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.86 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CHMI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CHMI's earnings are expected to grow with 29.04% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y29.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CHMI has a Yearly Dividend Yield of 11.09%, which is a nice return.
CHMI's Dividend Yield is a higher than the industry average which is at 11.20.
CHMI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.09% |
5.2 History
The dividend of CHMI decreases each year by -18.25%.
CHMI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-18.25%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of CHMI are negative and hence is the payout ratio. CHMI will probably not be able to sustain this dividend level.
DP-168.38%
EPS Next 2Y29.04%
EPS Next 3YN/A
2.7
+0.02 (+0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners14.02%
Inst Owner Change-0.55%
Ins Owners0.65%
Ins Owner Change28.86%
Market Cap88.18M
Analysts82.22
Price Target4.08 (51.11%)
Short Float %2.01%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.09% |
Yearly Dividend0.91
Dividend Growth(5Y)-18.25%
DP-168.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)19.11%
Min EPS beat(2)-20.51%
Max EPS beat(2)58.73%
EPS beat(4)1
Avg EPS beat(4)-15.14%
Min EPS beat(4)-49.4%
Max EPS beat(4)58.73%
EPS beat(8)1
Avg EPS beat(8)-16.89%
EPS beat(12)1
Avg EPS beat(12)-15.26%
EPS beat(16)4
Avg EPS beat(16)-11.6%
Revenue beat(2)1
Avg Revenue beat(2)-6.38%
Min Revenue beat(2)-50.82%
Max Revenue beat(2)38.05%
Revenue beat(4)3
Avg Revenue beat(4)190.03%
Min Revenue beat(4)-50.82%
Max Revenue beat(4)680.17%
Revenue beat(8)5
Avg Revenue beat(8)98.36%
Revenue beat(12)6
Avg Revenue beat(12)72.48%
Revenue beat(16)8
Avg Revenue beat(16)78.66%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-2.86%
EPS NQ rev (3m)-5.56%
EPS NY rev (1m)0%
EPS NY rev (3m)3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)19.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.28 | ||
| Fwd PE | 4.16 | ||
| P/S | 1.07 | ||
| P/FCF | 5.86 | ||
| P/OCF | 5.86 | ||
| P/B | 0.39 | ||
| P/tB | 0.39 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.43
EY15.93%
EPS(NY)0.65
Fwd EY24.05%
FCF(TTM)0.46
FCFY17.06%
OCF(TTM)0.46
OCFY17.06%
SpS2.52
BVpS6.94
TBVpS6.94
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.17% | ||
| ROE | -7.46% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 13.23% | ||
| FCFM | 18.29% |
ROA(3y)-0.74%
ROA(5y)-1.19%
ROE(3y)-4.01%
ROE(5y)-6.23%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-17.23%
OM growth 5YN/A
PM growth 3Y-26.59%
PM growth 5YN/A
GM growth 3Y-13.35%
GM growth 5YN/A
F-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.04 | ||
| Debt/FCF | 79.72 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -1.05 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.65%
EPS 3Y-28.34%
EPS 5Y-27.62%
EPS Q2Q%30.77%
EPS Next Y40.36%
EPS Next 2Y29.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.8%
Revenue growth 3Y29.32%
Revenue growth 5Y33.15%
Sales Q2Q%338.02%
Revenue Next Year443.63%
Revenue Next 2Y190.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-44.79%
EBIT growth 3Y7.04%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-69.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-69.73%
OCF growth 3YN/A
OCF growth 5YN/A