CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
NYSE:CIM - New York Stock Exchange, Inc. - US16934Q8024 - REIT - Currency: USD
Overall CIM gets a fundamental rating of 4 out of 10. We evaluated CIM against 65 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. CIM may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Of the past 5 years CIM 4 years were profitable.
Each year in the past 5 years CIM had a positive operating cash flow.
1.2 Ratios
CIM's Return On Assets of 0.95% is fine compared to the rest of the industry. CIM outperforms 75.38% of its industry peers.
CIM has a better Return On Equity (4.74%) than 70.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.03%, CIM is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
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.
CIM has a Operating Margin of 20.16%. This is amongst the best in the industry. CIM outperforms 81.54% of its industry peers.
CIM's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 32.66%, CIM is doing good in the industry, outperforming 72.31% of the companies in the same industry.
CIM's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
CIM has a better debt/assets ratio than last year.
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 63.08% 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 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.
With a decent Debt to Equity ratio value of 3.45, CIM is doing good in the industry, outperforming 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.45 | ||
| Debt/FCF | 52.72 | ||
| Altman-Z | -0.41 |
ROIC/WACC0.21
WACC5.03%
2.3 Liquidity
A Current Ratio of 0.08 indicates that CIM may have some problems paying its short term obligations.
CIM's Current ratio of 0.08 is on the low side compared to the rest of the industry. CIM is outperformed by 63.08% of its industry peers.
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 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.08 | ||
| Quick Ratio | 0.08 |
3. Growth
3.1 Past
CIM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.67%.
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 3.11% 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)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
Based on estimates for the next years, CIM will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.08% on average per year.
CIM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.73% yearly.
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
CIM is valuated reasonably with a Price/Earnings ratio of 9.48.
Compared to the rest of the industry, the Price/Earnings ratio of CIM indicates a somewhat cheap valuation: CIM is cheaper than 72.31% of the companies listed in the same industry.
CIM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 7.44, 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 80.00% of the companies listed in the same industry.
CIM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 7.44 |
4.2 Price Multiples
87.69% 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 cheaply inside the industry as 90.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.88 | ||
| EV/EBITDA | 53.65 |
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.
The decent profitability rating of CIM 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)0.3
PEG (5Y)N/A
EPS Next 2Y14.8%
EPS Next 3Y12.08%
5. Dividend
5.1 Amount
CIM has a Yearly Dividend Yield of 10.92%, which is a nice return.
With a Dividend Yield of 10.92, CIM pays less dividend than the industry average, which is at 13.73. 81.54% of the companies listed in the same industry pay a better dividend than CIM!
Compared to an average S&P500 Dividend Yield of 2.39, CIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.92% |
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
183.58% of the earnings are spent on dividend by CIM. This is not a sustainable payout ratio.
DP183.58%
EPS Next 2Y14.8%
EPS Next 3Y12.08%
14.32
+0.43 (+3.1%)
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-30.99%
Ins Owners1.54%
Ins Owner Change6.81%
Market Cap1.16B
Analysts72.5
Price Target16.07 (12.22%)
Short Float %1.68%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.92% |
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)12.2%
EPS NQ rev (3m)11.29%
EPS NY rev (1m)13.91%
EPS NY rev (3m)13.35%
Revenue NQ rev (1m)8.25%
Revenue NQ rev (3m)5.59%
Revenue NY rev (1m)6.59%
Revenue NY rev (3m)6.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 7.44 | ||
| P/S | 1.52 | ||
| P/FCF | 5.88 | ||
| P/OCF | 5.88 | ||
| P/B | 0.44 | ||
| P/tB | 0.44 | ||
| EV/EBITDA | 53.65 |
EPS(TTM)1.51
EY10.54%
EPS(NY)1.92
Fwd EY13.44%
FCF(TTM)2.44
FCFY17.01%
OCF(TTM)2.44
OCFY17.01%
SpS9.43
BVpS32.65
TBVpS32.65
PEG (NY)0.3
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
WACC5.03%
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%