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.
In the past 5 years CIM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.95%, CIM is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
CIM has a Return On Equity of 4.74%. This is in the better half of the industry: CIM outperforms 70.77% of its industry peers.
CIM has a Return On Invested Capital of 1.03%. This is in the better half of the industry: CIM outperforms 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
The Profit Margin of CIM (16.40%) is better than 81.54% of its industry peers.
In the last couple of years the Profit Margin of CIM has declined.
CIM's Operating Margin of 20.16% is amongst the best of the industry. CIM outperforms 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.
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.
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.
The debt/assets ratio for CIM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.42, we must say that CIM is in the distress zone and 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.
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 (52.72) which is in line with its industry peers.
A Debt/Equity ratio of 3.45 is on the high side and indicates that CIM has dependencies on debt 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 | -0.42 |
ROIC/WACC0.21
WACC4.98%
2.3 Liquidity
A Current Ratio of 0.08 indicates that CIM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.08, CIM is doing worse than 63.08% of the companies in the same industry.
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 63.08% 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%.
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
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.
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 9.13, the valuation of CIM can be described as very reasonable.
72.31% of the companies in the same industry are more expensive than CIM, based on the Price/Earnings ratio.
CIM is valuated cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.17 indicates a rather cheap valuation of CIM.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.30. CIM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 7.17 |
4.2 Price Multiples
CIM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CIM is cheaper than 87.69% of the companies in the same industry.
90.77% 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 | 5.66 | ||
| EV/EBITDA | 53.49 |
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 10.92%, CIM is a good candidate for dividend investing.
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!
CIM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| 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
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%
NYSE:CIM (6/9/2025, 3:30:31 PM)
13.79
+0.2 (+1.47%)
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 Cap1.12B
Analysts72.5
Price Target16.07 (16.53%)
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 | 9.13 | ||
| Fwd PE | 7.17 | ||
| P/S | 1.46 | ||
| P/FCF | 5.66 | ||
| P/OCF | 5.66 | ||
| P/B | 0.42 | ||
| P/tB | 0.42 | ||
| EV/EBITDA | 53.49 |
EPS(TTM)1.51
EY10.95%
EPS(NY)1.92
Fwd EY13.95%
FCF(TTM)2.44
FCFY17.66%
OCF(TTM)2.44
OCFY17.66%
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
WACC4.98%
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%