CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
NYSE:CIM - US16934Q8024 - REIT
14.17 USD
+0.17 (+1.21%)
14.23 USD
+0.06 (+0.42%)
Taking everything into account, CIM scores 5 out of 10 in our fundamental rating. CIM was compared to 67 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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
With a decent Return On Assets value of 0.71%, CIM is doing good in the industry, outperforming 76.12% of the companies in the same industry.
With a decent Return On Equity value of 4.01%, CIM is doing good in the industry, outperforming 67.16% of the companies in the same industry.
With a decent Return On Invested Capital value of 0.92%, CIM is doing good in the industry, outperforming 79.10% 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 1.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 4.01% | ||
| ROIC | 0.92% |
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 has a better Profit Margin (13.57%) than 79.10% of its industry peers.
In the last couple of years the Profit Margin of CIM has declined.
Looking at the Operating Margin, with a value of 19.64%, CIM belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.
In the last couple of years the Operating Margin of CIM has declined.
CIM's Gross Margin of 32.88% is fine compared to the rest of the industry. CIM outperforms 73.13% of its industry peers.
In the last couple of years the Gross Margin of CIM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.64% | ||
| PM (TTM) | 13.57% | ||
| GM | 32.88% |
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.
CIM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CIM has an improved debt to assets ratio.
2.2 Solvency
CIM has an Altman-Z score of -0.53. This is a bad value and indicates that CIM is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.53, CIM is not doing good in the industry: 67.16% of the companies in the same industry are doing better.
The Debt to FCF ratio of CIM is 97.21, which is on the high side as it means it would take CIM, 97.21 years of fcf income to pay off all of its debts.
CIM has a better Debt to FCF ratio (97.21) than 61.19% of its industry peers.
A Debt/Equity ratio of 3.99 is on the high side and indicates that CIM has dependencies on debt financing.
The Debt to Equity ratio of CIM (3.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 97.21 | ||
| Altman-Z | -0.53 |
ROIC/WACC0.18
WACC5%
2.3 Liquidity
CIM has a Current Ratio of 0.05. 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 0.05, CIM is not doing good in the industry: 82.09% of the companies in the same industry are doing better.
A Quick Ratio of 0.05 indicates that CIM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.05, CIM is doing worse than 82.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.32% 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.
The Revenue has been growing slightly by 3.20% in the past year.
The Revenue for CIM have been decreasing by -11.37% on average. This is quite bad
EPS 1Y (TTM)1.32%
EPS 3Y-35.1%
EPS 5Y-26.31%
EPS Q2Q%5.41%
Revenue 1Y (TTM)3.2%
Revenue growth 3Y-8.39%
Revenue growth 5Y-11.37%
Sales Q2Q%-1.91%
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 13.70% yearly.
The Revenue is expected to grow by 7.19% on average over the next years.
EPS Next Y25.21%
EPS Next 2Y16.29%
EPS Next 3Y13.7%
EPS Next 5YN/A
Revenue Next Year11.59%
Revenue Next 2Y10.64%
Revenue Next 3Y7.19%
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 9.26, the valuation of CIM can be described as very reasonable.
Based on the Price/Earnings ratio, CIM is valued a bit cheaper than 76.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of CIM to the average of the S&P500 Index (27.08), we can say CIM is valued rather cheaply.
The Price/Forward Earnings ratio is 7.18, which indicates a rather cheap valuation of CIM.
Based on the Price/Forward Earnings ratio, CIM is valued cheaper than 83.58% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CIM to the average of the S&P500 Index (22.72), we can say CIM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 7.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIM is valued cheaper than 86.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CIM is valued a bit cheaper than the industry average as 76.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.51 | ||
| EV/EBITDA | 52.76 |
4.3 Compensation for Growth
The 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 13.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y16.29%
EPS Next 3Y13.7%
5. Dividend
5.1 Amount
CIM has a Yearly Dividend Yield of 10.90%, which is a nice return.
CIM's Dividend Yield is slightly below the industry average, which is at 12.25.
CIM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.9% |
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
CIM pays out 223.91% of its income as dividend. This is not a sustainable payout ratio.
DP223.91%
EPS Next 2Y16.29%
EPS Next 3Y13.7%
14.17
+0.17 (+1.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners58.53%
Inst Owner Change-1.95%
Ins Owners1.68%
Ins Owner Change1.12%
Market Cap1.15B
Analysts72.5
Price Target15.81 (11.57%)
Short Float %1.63%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.9% |
Yearly Dividend2.77
Dividend Growth(5Y)-17.33%
DP223.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.44%
Min EPS beat(2)-15.44%
Max EPS beat(2)-15.43%
EPS beat(4)0
Avg EPS beat(4)-18.08%
Min EPS beat(4)-21.72%
Max EPS beat(4)-15.43%
EPS beat(8)0
Avg EPS beat(8)-21.24%
EPS beat(12)0
Avg EPS beat(12)-22.93%
EPS beat(16)3
Avg EPS beat(16)-15.18%
Revenue beat(2)0
Avg Revenue beat(2)-14.64%
Min Revenue beat(2)-19.49%
Max Revenue beat(2)-9.79%
Revenue beat(4)0
Avg Revenue beat(4)-13.95%
Min Revenue beat(4)-19.49%
Max Revenue beat(4)-9.79%
Revenue beat(8)0
Avg Revenue beat(8)-14.41%
Revenue beat(12)2
Avg Revenue beat(12)-5.91%
Revenue beat(16)6
Avg Revenue beat(16)8.69%
PT rev (1m)0%
PT rev (3m)10.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.11%
EPS NY rev (1m)-1.63%
EPS NY rev (3m)-4.57%
Revenue NQ rev (1m)3.9%
Revenue NQ rev (3m)10.54%
Revenue NY rev (1m)-2.13%
Revenue NY rev (3m)-2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 7.18 | ||
| P/S | 1.48 | ||
| P/FCF | 9.51 | ||
| P/OCF | 9.51 | ||
| P/B | 0.44 | ||
| P/tB | 0.44 | ||
| EV/EBITDA | 52.76 |
EPS(TTM)1.53
EY10.8%
EPS(NY)1.97
Fwd EY13.93%
FCF(TTM)1.49
FCFY10.51%
OCF(TTM)1.49
OCFY10.51%
SpS9.57
BVpS32.37
TBVpS32.37
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 4.01% | ||
| ROCE | 1.79% | ||
| ROIC | 0.92% | ||
| ROICexc | 0.94% | ||
| ROICexgc | 0.95% | ||
| OM | 19.64% | ||
| PM (TTM) | 13.57% | ||
| GM | 32.88% | ||
| FCFM | 15.56% |
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-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 97.21 | ||
| Debt/EBITDA | 68.51 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.31 | ||
| Cash Conversion | 79.04% | ||
| Profit Quality | 114.59% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.53 |
F-Score6
WACC5%
ROIC/WACC0.18
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)1.32%
EPS 3Y-35.1%
EPS 5Y-26.31%
EPS Q2Q%5.41%
EPS Next Y25.21%
EPS Next 2Y16.29%
EPS Next 3Y13.7%
EPS Next 5YN/A
Revenue 1Y (TTM)3.2%
Revenue growth 3Y-8.39%
Revenue growth 5Y-11.37%
Sales Q2Q%-1.91%
Revenue Next Year11.59%
Revenue Next 2Y10.64%
Revenue Next 3Y7.19%
Revenue Next 5YN/A
EBIT growth 1Y-2.85%
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-40.91%
FCF growth 3Y-26.56%
FCF growth 5Y25.89%
OCF growth 1Y-40.91%
OCF growth 3Y-26.56%
OCF growth 5Y25.89%