CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
NYSE:CIM - New York Stock Exchange, Inc. - US16934Q8024 - REIT - Currency: USD
CIM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. CIM has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on CIM.
1. Profitability
1.1 Basic Checks
In the past year CIM was profitable.
CIM had a positive operating cash flow in the past year.
Of the past 5 years CIM 4 years were profitable.
CIM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 0.95%, CIM is doing good in the industry, outperforming 74.24% of the companies in the same industry.
CIM's Return On Equity of 4.74% is fine compared to the rest of the industry. CIM outperforms 69.70% of its industry peers.
CIM's Return On Invested Capital of 1.03% is fine compared to the rest of the industry. CIM outperforms 71.21% 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
CIM's Profit Margin of 16.40% is amongst the best of the industry. CIM outperforms 81.82% of its industry peers.
CIM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 20.16%, CIM belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
CIM's Operating Margin has declined in the last couple of years.
CIM's Gross Margin of 32.66% is fine compared to the rest of the industry. CIM outperforms 71.21% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CIM is destroying value.
CIM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CIM has more shares outstanding
The debt/assets ratio for CIM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.41, we must say that CIM is in the distress zone and has some risk of bankruptcy.
CIM has a worse Altman-Z score (-0.41) than 62.12% of its industry peers.
CIM has a debt to FCF ratio of 52.72. This is a negative value and a sign of low solvency as CIM would need 52.72 years to pay back of all of its debts.
CIM's Debt to FCF ratio of 52.72 is in line compared to the rest of the industry. CIM outperforms 57.58% of its industry peers.
A Debt/Equity ratio of 3.45 is on the high side and indicates that CIM has dependencies on debt financing.
CIM has a Debt to Equity ratio of 3.45. This is in the better half of the industry: CIM outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.45 | ||
| Debt/FCF | 52.72 | ||
| Altman-Z | -0.41 |
ROIC/WACC0.21
WACC5.01%
2.3 Liquidity
A Current Ratio of 0.08 indicates that CIM may have some problems paying its short term obligations.
With a Current ratio value of 0.08, CIM is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
A Quick Ratio of 0.08 indicates that CIM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.08, CIM is doing worse than 63.64% of the companies in the same industry.
| 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.
CIM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.31% yearly.
Looking at the last year, CIM shows a small growth in Revenue. The Revenue has grown by 3.11% in the last 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
CIM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.35% yearly.
CIM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.11% yearly.
EPS Next Y27.29%
EPS Next 2Y15.55%
EPS Next 3Y13.35%
EPS Next 5YN/A
Revenue Next Year14.01%
Revenue Next 2Y8.83%
Revenue Next 3Y7.11%
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
Based on the Price/Earnings ratio of 9.32, the valuation of CIM can be described as reasonable.
CIM's Price/Earnings ratio is a bit cheaper when compared to the industry. CIM is cheaper than 72.73% of the companies in the same industry.
CIM is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.22, the valuation of CIM can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CIM indicates a somewhat cheap valuation: CIM is cheaper than 77.27% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. CIM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 7.22 |
4.2 Price Multiples
87.88% of the companies in the same industry are more expensive than CIM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CIM is valued cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.78 | ||
| EV/EBITDA | 53.74 |
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.
A more expensive valuation may be justified as CIM's earnings are expected to grow with 13.35% in the coming years.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y15.55%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
CIM has a Yearly Dividend Yield of 9.11%, which is a nice return.
Compared to an average industry Dividend Yield of 11.56, CIM is paying slightly less dividend.
CIM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.11% |
5.2 History
The dividend of CIM decreases each year by -17.33%.
CIM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-17.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
183.58% of the earnings are spent on dividend by CIM. This is not a sustainable payout ratio.
DP183.58%
EPS Next 2Y15.55%
EPS Next 3Y13.35%
14.07
-0.07 (-0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners57.83%
Inst Owner Change0%
Ins Owners1.61%
Ins Owner Change0.98%
Market Cap1.14B
Analysts72.5
Price Target16.07 (14.21%)
Short Float %2.06%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.11% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)11.38%
EPS NY rev (1m)-2.99%
EPS NY rev (3m)12.42%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)7.96%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)8.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 7.22 | ||
| P/S | 1.49 | ||
| P/FCF | 5.78 | ||
| P/OCF | 5.78 | ||
| P/B | 0.43 | ||
| P/tB | 0.43 | ||
| EV/EBITDA | 53.74 |
EPS(TTM)1.51
EY10.73%
EPS(NY)1.95
Fwd EY13.85%
FCF(TTM)2.44
FCFY17.31%
OCF(TTM)2.44
OCFY17.31%
SpS9.43
BVpS32.65
TBVpS32.65
PEG (NY)0.34
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 | -0.41 |
F-Score5
WACC5.01%
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 Y27.29%
EPS Next 2Y15.55%
EPS Next 3Y13.35%
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 Year14.01%
Revenue Next 2Y8.83%
Revenue Next 3Y7.11%
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%