CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
NYSE:CIM - New York Stock Exchange, Inc. - US16934Q8024 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to CIM. CIM was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of CIM while its profitability can be described as average. CIM scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
CIM had positive earnings in the past year.
CIM had a positive operating cash flow in the past year.
CIM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CIM had a positive operating cash flow.
1.2 Ratios
CIM has a Return On Assets of 0.95%. This is in the better half of the industry: CIM outperforms 75.38% of its industry peers.
The Return On Equity of CIM (4.74%) is better than 70.77% of its industry peers.
The Return On Invested Capital of CIM (1.03%) is better than 72.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIM is in line with the industry average of 1.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 4.74% | ||
| ROIC | 1.03% |
ROA(3y)-1.1%
ROA(5y)0.13%
ROE(3y)-5.46%
ROE(5y)0%
ROIC(3y)1.06%
ROIC(5y)1.7%
1.3 Margins
Looking at the Profit Margin, with a value of 16.40%, CIM belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
In the last couple of years the Profit Margin of CIM has declined.
The Operating Margin of CIM (20.16%) is better than 81.54% of its industry peers.
In the last couple of years the Operating Margin of CIM has declined.
CIM has a better Gross Margin (32.66%) than 72.31% of its industry peers.
In the last couple of years the Gross Margin of CIM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.16% | ||
| PM (TTM) | 16.4% | ||
| GM | 32.67% |
OM growth 3Y-27.82%
OM growth 5Y-11.26%
PM growth 3Y-41.81%
PM growth 5Y-13.49%
GM growth 3Y-21.29%
GM growth 5Y-6.24%
2. Health
2.1 Basic Checks
CIM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CIM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CIM has more shares outstanding
CIM has a better debt/assets ratio than last year.
2.2 Solvency
CIM has an Altman-Z score of -0.42. This is a bad value and indicates that CIM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.42, CIM is doing worse than 63.08% of the companies in the same industry.
The Debt to FCF ratio of CIM is 52.72, which is on the high side as it means it would take CIM, 52.72 years of fcf income to pay off all of its debts.
CIM has a Debt to FCF ratio of 52.72. This is comparable to the rest of the industry: CIM outperforms 58.46% of its industry peers.
CIM has a Debt/Equity ratio of 3.45. This is a high value indicating a heavy dependency on external financing.
CIM has a better Debt to Equity ratio (3.45) than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.45 | ||
| Debt/FCF | 52.72 | ||
| Altman-Z | -0.42 |
ROIC/WACC0.21
WACC4.97%
2.3 Liquidity
CIM has a Current Ratio of 0.08. This is a bad value and indicates that CIM is not financially healthy enough and could expect problems in meeting its short term obligations.
CIM has a worse Current ratio (0.08) than 63.08% of its industry peers.
A Quick Ratio of 0.08 indicates that CIM may have some problems paying its short term obligations.
The Quick ratio of CIM (0.08) is worse than 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.08 | ||
| Quick Ratio | 0.08 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.67% over the past year.
Measured over the past years, CIM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.31% on average per year.
The Revenue has been growing slightly by 3.11% in the past year.
CIM shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.37% yearly.
EPS 1Y (TTM)0.67%
EPS 3Y-35.1%
EPS 5Y-26.31%
EPS Q2Q%13.89%
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-8.39%
Revenue growth 5Y-11.37%
Sales Q2Q%6.32%
3.2 Future
The Earnings Per Share is expected to grow by 12.08% on average over the next years. This is quite good.
Based on estimates for the next years, CIM will show a small growth in Revenue. The Revenue will grow by 6.73% on average per year.
EPS Next Y31.21%
EPS Next 2Y14.8%
EPS Next 3Y12.08%
EPS Next 5YN/A
Revenue Next Year14.43%
Revenue Next 2Y8.59%
Revenue Next 3Y6.73%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 9.01, the valuation of CIM can be described as very reasonable.
Based on the Price/Earnings ratio, CIM is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
CIM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.32.
With a Price/Forward Earnings ratio of 7.07, the valuation of CIM can be described as very cheap.
Based on the Price/Forward Earnings ratio, CIM is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
CIM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| Fwd PE | 7.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIM is valued cheaper than 87.69% of the companies in the same industry.
87.69% of the companies in the same industry are more expensive than CIM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.59 | ||
| EV/EBITDA | 53.5 |
4.3 Compensation for Growth
CIM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CIM has a very decent profitability rating, which may justify a higher PE ratio.
CIM's earnings are expected to grow with 12.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y14.8%
EPS Next 3Y12.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.06%, CIM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.22, CIM's dividend is way lower than its industry peers. On top of this 84.62% of the companies listed in the same industry pay a better dividend than CIM!
Compared to an average S&P500 Dividend Yield of 2.40, CIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.06% |
5.2 History
The dividend of CIM decreases each year by -17.33%.
CIM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-17.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CIM pays out 183.58% of its income as dividend. This is not a sustainable payout ratio.
DP183.58%
EPS Next 2Y14.8%
EPS Next 3Y12.08%
13.61
-0.27 (-1.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners57.83%
Inst Owner Change-30.99%
Ins Owners1.61%
Ins Owner Change5.88%
Market Cap1.10B
Analysts72.5
Price Target16.07 (18.07%)
Short Float %1.98%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.06% |
Yearly Dividend2.77
Dividend Growth(5Y)-17.33%
DP183.58%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.58%
Min EPS beat(2)-21.72%
Max EPS beat(2)-15.43%
EPS beat(4)0
Avg EPS beat(4)-17.52%
Min EPS beat(4)-21.72%
Max EPS beat(4)-13.19%
EPS beat(8)0
Avg EPS beat(8)-22.83%
EPS beat(12)0
Avg EPS beat(12)-22.15%
EPS beat(16)4
Avg EPS beat(16)-10.59%
Revenue beat(2)0
Avg Revenue beat(2)-12.88%
Min Revenue beat(2)-15.96%
Max Revenue beat(2)-9.79%
Revenue beat(4)0
Avg Revenue beat(4)-10.72%
Min Revenue beat(4)-15.96%
Max Revenue beat(4)-6.57%
Revenue beat(8)0
Avg Revenue beat(8)-14.28%
Revenue beat(12)3
Avg Revenue beat(12)-0.2%
Revenue beat(16)7
Avg Revenue beat(16)16.03%
PT rev (1m)12.5%
PT rev (3m)0%
EPS NQ rev (1m)6.98%
EPS NQ rev (3m)11.29%
EPS NY rev (1m)0%
EPS NY rev (3m)13.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| Fwd PE | 7.07 | ||
| P/S | 1.44 | ||
| P/FCF | 5.59 | ||
| P/OCF | 5.59 | ||
| P/B | 0.42 | ||
| P/tB | 0.42 | ||
| EV/EBITDA | 53.5 |
EPS(TTM)1.51
EY11.09%
EPS(NY)1.92
Fwd EY14.14%
FCF(TTM)2.44
FCFY17.89%
OCF(TTM)2.44
OCFY17.89%
SpS9.43
BVpS32.65
TBVpS32.65
PEG (NY)0.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 4.74% | ||
| ROCE | 1.75% | ||
| ROIC | 1.03% | ||
| ROICexc | 1.06% | ||
| ROICexgc | 1.07% | ||
| OM | 20.16% | ||
| PM (TTM) | 16.4% | ||
| GM | 32.67% | ||
| FCFM | 25.83% |
ROA(3y)-1.1%
ROA(5y)0.13%
ROE(3y)-5.46%
ROE(5y)0%
ROIC(3y)1.06%
ROIC(5y)1.7%
ROICexc(3y)1.07%
ROICexc(5y)1.73%
ROICexgc(3y)1.08%
ROICexgc(5y)1.74%
ROCE(3y)1.76%
ROCE(5y)2.84%
ROICexcg growth 3Y-27.85%
ROICexcg growth 5Y-7.12%
ROICexc growth 3Y-27.99%
ROICexc growth 5Y-7.16%
OM growth 3Y-27.82%
OM growth 5Y-11.26%
PM growth 3Y-41.81%
PM growth 5Y-13.49%
GM growth 3Y-21.29%
GM growth 5Y-6.24%
F-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.45 | ||
| Debt/FCF | 52.72 | ||
| Debt/EBITDA | 59.13 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.32 | ||
| Cash Conversion | 127.85% | ||
| Profit Quality | 157.44% | ||
| Current Ratio | 0.08 | ||
| Quick Ratio | 0.08 | ||
| Altman-Z | -0.42 |
F-Score5
WACC4.97%
ROIC/WACC0.21
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)0.67%
EPS 3Y-35.1%
EPS 5Y-26.31%
EPS Q2Q%13.89%
EPS Next Y31.21%
EPS Next 2Y14.8%
EPS Next 3Y12.08%
EPS Next 5YN/A
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-8.39%
Revenue growth 5Y-11.37%
Sales Q2Q%6.32%
Revenue Next Year14.43%
Revenue Next 2Y8.59%
Revenue Next 3Y6.73%
Revenue Next 5YN/A
EBIT growth 1Y23.93%
EBIT growth 3Y-33.87%
EBIT growth 5Y-21.34%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-10.46%
FCF growth 3Y-26.56%
FCF growth 5Y25.89%
OCF growth 1Y-10.46%
OCF growth 3Y-26.56%
OCF growth 5Y25.89%