CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
NYSE:CIM - New York Stock Exchange, Inc. - US16934Q8024 - REIT - Currency: USD
Taking everything into account, CIM scores 4 out of 10 in our fundamental rating. CIM was compared to 67 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
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.
In the past 5 years CIM always reported a positive cash flow from operatings.
1.2 Ratios
CIM's Return On Assets of 0.95% is fine compared to the rest of the industry. CIM outperforms 77.61% of its industry peers.
With a decent Return On Equity value of 4.74%, CIM is doing good in the industry, outperforming 73.13% of the companies in the same industry.
With a decent Return On Invested Capital value of 1.03%, CIM is doing good in the industry, outperforming 74.63% 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 1.41%.
| 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
With an excellent Profit Margin value of 16.40%, CIM belongs to the best of the industry, outperforming 83.58% of the companies in the same industry.
CIM's Profit Margin has declined in the last couple of years.
CIM has a better Operating Margin (20.16%) than 83.58% of its industry peers.
In the last couple of years the Operating Margin of CIM has declined.
CIM's Gross Margin of 32.66% is fine compared to the rest of the industry. CIM outperforms 74.63% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CIM is destroying value.
The number of shares outstanding for CIM has been increased compared to 1 year ago.
The number of shares outstanding for CIM has been increased compared to 5 years ago.
Compared to 1 year ago, CIM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.42, we must say that CIM is in the distress zone and has some risk of bankruptcy.
CIM's Altman-Z score of -0.42 is on the low side compared to the rest of the industry. CIM is outperformed by 62.69% of its industry peers.
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.
With a Debt to FCF ratio value of 52.72, CIM perfoms like the industry average, outperforming 58.21% of the companies in the same industry.
CIM has a Debt/Equity ratio of 3.45. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.45, CIM is in the better half of the industry, outperforming 67.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.45 | ||
| Debt/FCF | 52.72 | ||
| Altman-Z | -0.42 |
ROIC/WACC0.21
WACC4.96%
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 62.69% of its industry peers.
A Quick Ratio of 0.08 indicates that CIM may have some problems paying its short term obligations.
CIM has a worse Quick ratio (0.08) than 62.69% of its industry peers.
| 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%.
CIM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.31% yearly.
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 13.35% on average per year.
The Revenue is expected to grow by 7.11% on average over the next years.
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
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
CIM is valuated reasonably with a Price/Earnings ratio of 9.05.
Based on the Price/Earnings ratio, CIM is valued a bit cheaper than 74.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, CIM is valued rather cheaply.
The Price/Forward Earnings ratio is 7.01, which indicates a rather cheap valuation of CIM.
Based on the Price/Forward Earnings ratio, CIM is valued a bit cheaper than the industry average as 79.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.42, CIM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 7.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIM indicates a rather cheap valuation: CIM is cheaper than 88.06% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CIM is valued cheaper than 89.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.61 | ||
| EV/EBITDA | 53.53 |
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 13.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y15.55%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.07%, CIM is a good candidate for dividend investing.
CIM's Dividend Yield is a higher than the industry average which is at 10.79.
Compared to an average S&P500 Dividend Yield of 2.40, CIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.07% |
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%
13.67
+0.23 (+1.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners57.83%
Inst Owner Change0.38%
Ins Owners1.61%
Ins Owner Change0.98%
Market Cap1.11B
Analysts72.5
Price Target15.81 (15.65%)
Short Float %1.49%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.07% |
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)-1.59%
PT rev (3m)10.71%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)11.38%
EPS NY rev (1m)-2.99%
EPS NY rev (3m)10.51%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)7.96%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)6.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 7.01 | ||
| P/S | 1.45 | ||
| P/FCF | 5.61 | ||
| P/OCF | 5.61 | ||
| P/B | 0.42 | ||
| P/tB | 0.42 | ||
| EV/EBITDA | 53.53 |
EPS(TTM)1.51
EY11.05%
EPS(NY)1.95
Fwd EY14.26%
FCF(TTM)2.44
FCFY17.82%
OCF(TTM)2.44
OCFY17.82%
SpS9.43
BVpS32.65
TBVpS32.65
PEG (NY)0.33
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
WACC4.96%
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%