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. While CIM is still in line with the averages on profitability rating, there are concerns on its financial health. CIM is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CIM was profitable.
In the past year CIM had a positive cash flow from operations.
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
The Return On Assets of CIM (0.69%) is comparable to the rest of the industry.
With a Return On Equity value of 3.58%, CIM perfoms like the industry average, outperforming 41.54% of the companies in the same industry.
With a decent Return On Invested Capital value of 1.06%, CIM is doing good in the industry, outperforming 78.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CIM is in line with the industry average of 1.71%.
The 3 year average ROIC (1.06%) for CIM is below the current ROIC(1.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 3.58% | ||
| ROIC | 1.06% |
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
With a Profit Margin value of 11.95%, CIM perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
CIM's Profit Margin has declined in the last couple of years.
CIM's Operating Margin of 19.92% is fine compared to the rest of the industry. CIM outperforms 69.23% of its industry peers.
In the last couple of years the Operating Margin of CIM has declined.
With a decent Gross Margin value of 30.75%, CIM is doing good in the industry, outperforming 69.23% of the companies in the same industry.
CIM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.92% | ||
| PM (TTM) | 11.95% | ||
| GM | 30.75% |
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.
The number of shares outstanding for CIM has been increased compared to 5 years ago.
The debt/assets ratio for CIM has been reduced compared to a year ago.
2.2 Solvency
CIM has an Altman-Z score of -0.48. 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 -0.48, CIM is doing worse than 66.15% of the companies in the same industry.
The Debt to FCF ratio of CIM is 48.69, which is on the high side as it means it would take CIM, 48.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CIM (48.69) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.45 is on the high side and indicates that CIM has dependencies on debt financing.
The Debt to Equity ratio of CIM (3.45) is better than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.45 | ||
| Debt/FCF | 48.69 | ||
| Altman-Z | -0.48 |
ROIC/WACC0.22
WACC4.78%
2.3 Liquidity
CIM has a Current Ratio of 0.04. This is a bad value and indicates that CIM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.04, CIM is not doing good in the industry: 83.08% of the companies in the same industry are doing better.
CIM has a Quick Ratio of 0.04. This is a bad value and indicates that CIM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.04, CIM is not doing good in the industry: 83.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
CIM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.58%.
The earnings per share for CIM have been decreasing by -26.31% on average. This is quite bad
The Revenue has been growing slightly by 1.90% in the past year.
Measured over the past years, CIM shows a very negative growth in Revenue. The Revenue has been decreasing by -11.37% on average per year.
EPS 1Y (TTM)-4.58%
EPS 3Y-35.1%
EPS 5Y-26.31%
EPS Q2Q%-5.13%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y-8.39%
Revenue growth 5Y-11.37%
Sales Q2Q%1.81%
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 9.73% yearly.
CIM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
EPS Next Y15.18%
EPS Next 2Y10.97%
EPS Next 3Y9.73%
EPS Next 5YN/A
Revenue Next Year5.03%
Revenue Next 2Y3.37%
Revenue Next 3Y4.07%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.55, the valuation of CIM can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CIM indicates a somewhat cheap valuation: CIM is cheaper than 75.38% of the companies listed in the same industry.
CIM is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.55, the valuation of CIM can be described as very cheap.
CIM's Price/Forward Earnings ratio is rather cheap when compared to the industry. CIM is cheaper than 83.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, CIM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 6.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIM is valued cheaply inside the industry as 86.15% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CIM indicates a rather cheap valuation: CIM is cheaper than 89.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.34 | ||
| EV/EBITDA | 53.21 |
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.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y10.97%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
CIM has a Yearly Dividend Yield of 12.99%, which is a nice return.
The stock price of CIM dropped by -20.35% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CIM's Dividend Yield is comparable with the industry average which is at 14.90.
Compared to an average S&P500 Dividend Yield of 2.51, CIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.99% |
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
247.16% of the earnings are spent on dividend by CIM. This is not a sustainable payout ratio.
DP247.16%
EPS Next 2Y10.97%
EPS Next 3Y9.73%
NYSE:CIM (4/21/2025, 2:13:49 PM)
11.02
-0.37 (-3.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners57.09%
Inst Owner Change-0.06%
Ins Owners1.54%
Ins Owner Change7.61%
Market Cap891.74M
Analysts50
Price Target16.07 (45.83%)
Short Float %1.79%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.99% |
Yearly Dividend2.77
Dividend Growth(5Y)-17.33%
DP247.16%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.72%
Min EPS beat(2)-21.72%
Max EPS beat(2)-19.72%
EPS beat(4)0
Avg EPS beat(4)-21.39%
Min EPS beat(4)-30.92%
Max EPS beat(4)-13.19%
EPS beat(8)0
Avg EPS beat(8)-23.5%
EPS beat(12)1
Avg EPS beat(12)-20.47%
EPS beat(16)5
Avg EPS beat(16)-8.49%
Revenue beat(2)0
Avg Revenue beat(2)-13.26%
Min Revenue beat(2)-15.96%
Max Revenue beat(2)-10.56%
Revenue beat(4)0
Avg Revenue beat(4)-10.24%
Min Revenue beat(4)-15.96%
Max Revenue beat(4)-6.57%
Revenue beat(8)0
Avg Revenue beat(8)-14.99%
Revenue beat(12)4
Avg Revenue beat(12)4.27%
Revenue beat(16)8
Avg Revenue beat(16)24.83%
PT rev (1m)0%
PT rev (3m)-1.56%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-2.18%
Revenue NY rev (3m)-3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 6.55 | ||
| P/S | 1.18 | ||
| P/FCF | 4.34 | ||
| P/OCF | 4.34 | ||
| P/B | 0.35 | ||
| P/tB | 0.35 | ||
| EV/EBITDA | 53.21 |
EPS(TTM)1.46
EY13.25%
EPS(NY)1.68
Fwd EY15.26%
FCF(TTM)2.54
FCFY23.06%
OCF(TTM)2.54
OCFY23.06%
SpS9.34
BVpS31.22
TBVpS31.22
PEG (NY)0.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 3.58% | ||
| ROCE | 1.79% | ||
| ROIC | 1.06% | ||
| ROICexc | 1.06% | ||
| ROICexgc | 1.08% | ||
| OM | 19.92% | ||
| PM (TTM) | 11.95% | ||
| GM | 30.75% | ||
| FCFM | 27.22% |
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-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.45 | ||
| Debt/FCF | 48.69 | ||
| Debt/EBITDA | 57.84 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.31 | ||
| Cash Conversion | 136.32% | ||
| Profit Quality | 227.7% | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | -0.48 |
F-Score7
WACC4.78%
ROIC/WACC0.22
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)-4.58%
EPS 3Y-35.1%
EPS 5Y-26.31%
EPS Q2Q%-5.13%
EPS Next Y15.18%
EPS Next 2Y10.97%
EPS Next 3Y9.73%
EPS Next 5YN/A
Revenue 1Y (TTM)1.9%
Revenue growth 3Y-8.39%
Revenue growth 5Y-11.37%
Sales Q2Q%1.81%
Revenue Next Year5.03%
Revenue Next 2Y3.37%
Revenue Next 3Y4.07%
Revenue Next 5YN/A
EBIT growth 1Y28.61%
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-3.56%
FCF growth 3Y-26.56%
FCF growth 5Y25.89%
OCF growth 1Y-3.56%
OCF growth 3Y-26.56%
OCF growth 5Y25.89%