CHERRY HILL MORTGAGE INVESTM (CHMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHMI - US1646511014 - REIT
2.72 USD
+0.09 (+3.42%)
2.75 USD
+0.03 (+1.1%)
We assign a fundamental rating of 4 out of 10 to CHMI. CHMI was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of CHMI have multiple concerns. CHMI is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
CHMI had positive earnings in the past year.
In the past year CHMI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CHMI reported negative net income in multiple years.
Of the past 5 years CHMI 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.05%, CHMI is doing worse than 64.71% of the companies in the same industry.
CHMI's Return On Equity of 0.33% is on the low side compared to the rest of the industry. CHMI is outperformed by 64.71% of its industry peers.
With a decent Return On Invested Capital value of 0.75%, CHMI is doing good in the industry, outperforming 69.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 0.33% | ||
| ROIC | 0.75% |
ROA(3y)-0.74%
ROA(5y)-1.19%
ROE(3y)-4.01%
ROE(5y)-6.23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of CHMI (0.85%) is worse than 64.71% of its industry peers.
CHMI's Profit Margin has declined in the last couple of years.
CHMI's Operating Margin of 16.27% is fine compared to the rest of the industry. CHMI outperforms 63.24% of its industry peers.
CHMI's Operating Margin has declined in the last couple of years.
The Gross Margin of CHMI (32.07%) is better than 66.18% of its industry peers.
In the last couple of years the Gross Margin of CHMI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.27% | ||
| PM (TTM) | 0.85% | ||
| GM | 32.07% |
OM growth 3Y-17.23%
OM growth 5YN/A
PM growth 3Y-26.59%
PM growth 5YN/A
GM growth 3Y-13.35%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for CHMI has been increased compared to 1 year ago.
Compared to 5 years ago, CHMI has more shares outstanding
Compared to 1 year ago, CHMI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.96, we must say that CHMI is in the distress zone and has some risk of bankruptcy.
CHMI has a worse Altman-Z score (-0.96) than 91.18% of its industry peers.
CHMI has a debt to FCF ratio of 75.24. This is a negative value and a sign of low solvency as CHMI would need 75.24 years to pay back of all of its debts.
The Debt to FCF ratio of CHMI (75.24) is better than 70.59% of its industry peers.
CHMI has a Debt/Equity ratio of 5.38. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.38, CHMI is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 75.24 | ||
| Altman-Z | -0.96 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
CHMI has a Current Ratio of 0.05. This is a bad value and indicates that CHMI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.05, CHMI is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
CHMI has a Quick Ratio of 0.05. This is a bad value and indicates that CHMI is not financially healthy enough and could expect problems in meeting its short term obligations.
CHMI has a Quick ratio of 0.05. This is in the lower half of the industry: CHMI underperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The earnings per share for CHMI have decreased by 0.00% in the last year.
CHMI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.62% yearly.
The Revenue has grown by 76.61% in the past year. This is a very strong growth!
The Revenue has been growing by 33.15% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)0%
EPS 3Y-28.34%
EPS 5Y-27.62%
EPS Q2Q%12.5%
Revenue 1Y (TTM)76.61%
Revenue growth 3Y29.32%
Revenue growth 5Y33.15%
Sales Q2Q%-68.1%
3.2 Future
CHMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.84% yearly.
The Revenue is expected to grow by 175.88% on average over the next years. This is a very strong growth
EPS Next Y21.62%
EPS Next 2Y18.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year477.78%
Revenue Next 2Y175.88%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 5.91, which indicates a rather cheap valuation of CHMI.
Based on the Price/Earnings ratio, CHMI is valued cheaper than 94.12% of the companies in the same industry.
CHMI is valuated cheaply when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
CHMI is valuated cheaply with a Price/Forward Earnings ratio of 4.94.
Based on the Price/Forward Earnings ratio, CHMI is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.01. CHMI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.91 | ||
| Fwd PE | 4.94 |
4.2 Price Multiples
91.18% of the companies in the same industry are more expensive than CHMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.99 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CHMI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CHMI's earnings are expected to grow with 18.84% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y18.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.50%, CHMI is a good candidate for dividend investing.
CHMI's Dividend Yield is rather good when compared to the industry average which is at 12.23. CHMI pays more dividend than 85.29% of the companies in the same industry.
CHMI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.5% |
5.2 History
The dividend of CHMI decreases each year by -18.25%.
CHMI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-18.25%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CHMI pays out 3844.33% of its income as dividend. This is not a sustainable payout ratio.
DP3844.33%
EPS Next 2Y18.84%
EPS Next 3YN/A
2.72
+0.09 (+3.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners16.92%
Inst Owner Change6.73%
Ins Owners0.99%
Ins Owner Change30.77%
Market Cap99.93M
Revenue(TTM)91.74M
Net Income(TTM)776.00K
Analysts82.5
Price Target2.93 (7.72%)
Short Float %1.16%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.5% |
Yearly Dividend0.91
Dividend Growth(5Y)-18.25%
DP3844.33%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.63%
Min EPS beat(2)-13.49%
Max EPS beat(2)-11.76%
EPS beat(4)1
Avg EPS beat(4)3.24%
Min EPS beat(4)-20.51%
Max EPS beat(4)58.73%
EPS beat(8)1
Avg EPS beat(8)-15.91%
EPS beat(12)1
Avg EPS beat(12)-16.04%
EPS beat(16)3
Avg EPS beat(16)-12.33%
Revenue beat(2)2
Avg Revenue beat(2)31.02%
Min Revenue beat(2)14.98%
Max Revenue beat(2)47.06%
Revenue beat(4)3
Avg Revenue beat(4)12.32%
Min Revenue beat(4)-50.82%
Max Revenue beat(4)47.06%
Revenue beat(8)5
Avg Revenue beat(8)273.3%
Revenue beat(12)7
Avg Revenue beat(12)159.46%
Revenue beat(16)10
Avg Revenue beat(16)205.68%
PT rev (1m)-20.69%
PT rev (3m)-28.12%
EPS NQ rev (1m)-4.55%
EPS NQ rev (3m)-19.23%
EPS NY rev (1m)-8.82%
EPS NY rev (3m)-10.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.1%
Revenue NY rev (1m)14.92%
Revenue NY rev (3m)6.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.91 | ||
| Fwd PE | 4.94 | ||
| P/S | 1.09 | ||
| P/FCF | 5.99 | ||
| P/OCF | 5.99 | ||
| P/B | 0.43 | ||
| P/tB | 0.43 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.46
EY16.91%
EPS(NY)0.55
Fwd EY20.25%
FCF(TTM)0.45
FCFY16.69%
OCF(TTM)0.45
OCFY16.69%
SpS2.5
BVpS6.35
TBVpS6.35
PEG (NY)0.27
PEG (5Y)N/A
Graham Number8.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 0.33% | ||
| ROCE | 3.86% | ||
| ROIC | 0.75% | ||
| ROICexc | 0.78% | ||
| ROICexgc | 0.79% | ||
| OM | 16.27% | ||
| PM (TTM) | 0.85% | ||
| GM | 32.07% | ||
| FCFM | 18.17% |
ROA(3y)-0.74%
ROA(5y)-1.19%
ROE(3y)-4.01%
ROE(5y)-6.23%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y1.82%
ROICexgc growth 5YN/A
ROICexc growth 3Y1.54%
ROICexc growth 5YN/A
OM growth 3Y-17.23%
OM growth 5YN/A
PM growth 3Y-26.59%
PM growth 5YN/A
GM growth 3Y-13.35%
GM growth 5YN/A
F-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 75.24 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.4 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 2148.71% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.96 |
F-Score7
WACCN/A
ROIC/WACCN/A
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%
EPS 3Y-28.34%
EPS 5Y-27.62%
EPS Q2Q%12.5%
EPS Next Y21.62%
EPS Next 2Y18.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)76.61%
Revenue growth 3Y29.32%
Revenue growth 5Y33.15%
Sales Q2Q%-68.1%
Revenue Next Year477.78%
Revenue Next 2Y175.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y146.16%
EBIT growth 3Y7.04%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-55.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-55.3%
OCF growth 3YN/A
OCF growth 5YN/A
CHERRY HILL MORTGAGE INVESTM / CHMI FAQ
What is the fundamental rating for CHMI stock?
ChartMill assigns a fundamental rating of 4 / 10 to CHMI.
Can you provide the valuation status for CHERRY HILL MORTGAGE INVESTM?
ChartMill assigns a valuation rating of 8 / 10 to CHERRY HILL MORTGAGE INVESTM (CHMI). This can be considered as Undervalued.
What is the profitability of CHMI stock?
CHERRY HILL MORTGAGE INVESTM (CHMI) has a profitability rating of 3 / 10.
What is the valuation of CHERRY HILL MORTGAGE INVESTM based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CHERRY HILL MORTGAGE INVESTM (CHMI) is 5.91 and the Price/Book (PB) ratio is 0.43.
What is the expected EPS growth for CHERRY HILL MORTGAGE INVESTM (CHMI) stock?
The Earnings per Share (EPS) of CHERRY HILL MORTGAGE INVESTM (CHMI) is expected to grow by 21.62% in the next year.