CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
USA - NYSE:CIM - US16934Q8024 - REIT
12.1 USD
-0.14 (-1.14%)
12.1 USD
0 (0%)
CIM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CIM.
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 has a Return On Assets of 0.71%. This is in the better half of the industry: CIM outperforms 75.00% of its industry peers.
With a decent Return On Equity value of 4.01%, CIM is doing good in the industry, outperforming 60.29% of the companies in the same industry.
CIM has a Return On Invested Capital of 0.92%. This is in the better half of the industry: CIM outperforms 77.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CIM is in line with the industry average of 1.19%.
| 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
The Profit Margin of CIM (13.57%) is better than 77.94% 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 82.35% of the companies in the same industry.
CIM's Operating Margin has declined in the last couple of years.
CIM has a Gross Margin of 32.88%. This is in the better half of the industry: CIM outperforms 70.59% 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.
Compared to 1 year ago, CIM has more shares outstanding
Compared to 5 years ago, CIM has more shares outstanding
Compared to 1 year ago, CIM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.53, we must say that CIM is in the distress zone and has some risk of bankruptcy.
CIM has a worse Altman-Z score (-0.53) than 69.12% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 97.21, CIM is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
CIM has a Debt/Equity ratio of 3.99. This is a high value indicating a heavy dependency on external financing.
CIM has a Debt to Equity ratio (3.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 97.21 | ||
| Altman-Z | -0.53 |
ROIC/WACC0.19
WACC4.85%
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.
The Current ratio of CIM (0.05) is worse than 72.06% of its industry peers.
A Quick Ratio of 0.05 indicates that CIM may have some problems paying its short term obligations.
CIM's Quick ratio of 0.05 is on the low side compared to the rest of the industry. CIM is outperformed by 72.06% 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 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.
Looking at the last year, CIM shows a small growth in Revenue. The Revenue has grown by 3.20% in the last 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)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
Based on estimates for the next years, CIM will show a very strong growth in Earnings Per Share. The EPS will grow by 20.03% on average per year.
The Revenue is expected to grow by 10.51% on average over the next years. This is quite good.
EPS Next Y28.44%
EPS Next 2Y26.96%
EPS Next 3Y20.03%
EPS Next 5YN/A
Revenue Next Year13.65%
Revenue Next 2Y15.78%
Revenue Next 3Y10.51%
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
The Price/Earnings ratio is 7.91, which indicates a rather cheap valuation of CIM.
80.88% of the companies in the same industry are more expensive than CIM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.34. CIM is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.14, which indicates a rather cheap valuation of CIM.
CIM's Price/Forward Earnings ratio is rather cheap when compared to the industry. CIM is cheaper than 91.18% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. CIM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 5.14 |
4.2 Price Multiples
85.29% of the companies in the same industry are more expensive than CIM, based on the Enterprise Value to EBITDA ratio.
CIM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CIM is cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.33 | ||
| EV/EBITDA | 51.91 |
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.
A more expensive valuation may be justified as CIM's earnings are expected to grow with 20.03% in the coming years.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y26.96%
EPS Next 3Y20.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.09%, CIM is a good candidate for dividend investing.
CIM's Dividend Yield is slightly below the industry average, which is at 13.19.
CIM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.09% |
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
223.91% of the earnings are spent on dividend by CIM. This is not a sustainable payout ratio.
DP223.91%
EPS Next 2Y26.96%
EPS Next 3Y20.03%
12.1
-0.14 (-1.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners56.96%
Inst Owner Change0.42%
Ins Owners1.68%
Ins Owner Change0.92%
Market Cap1.01B
Revenue(TTM)776.19M
Net Income(TTM)105.36M
Analysts72.5
Price Target15.81 (30.66%)
Short Float %2.43%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.09% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.72%
EPS NY rev (1m)2.58%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)3.37%
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 5.14 | ||
| P/S | 1.3 | ||
| P/FCF | 8.33 | ||
| P/OCF | 8.33 | ||
| P/B | 0.38 | ||
| P/tB | 0.38 | ||
| EV/EBITDA | 51.91 |
EPS(TTM)1.53
EY12.64%
EPS(NY)2.35
Fwd EY19.45%
FCF(TTM)1.45
FCFY12%
OCF(TTM)1.45
OCFY12%
SpS9.33
BVpS31.56
TBVpS31.56
PEG (NY)0.28
PEG (5Y)N/A
Graham Number32.96
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%
ROICexgc growth 3Y-27.85%
ROICexgc 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
WACC4.85%
ROIC/WACC0.19
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 Y28.44%
EPS Next 2Y26.96%
EPS Next 3Y20.03%
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 Year13.65%
Revenue Next 2Y15.78%
Revenue Next 3Y10.51%
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%
CHIMERA INVESTMENT CORP / CIM FAQ
Can you provide the ChartMill fundamental rating for CHIMERA INVESTMENT CORP?
ChartMill assigns a fundamental rating of 5 / 10 to CIM.
What is the valuation status of CHIMERA INVESTMENT CORP (CIM) stock?
ChartMill assigns a valuation rating of 9 / 10 to CHIMERA INVESTMENT CORP (CIM). This can be considered as Undervalued.
Can you provide the profitability details for CHIMERA INVESTMENT CORP?
CHIMERA INVESTMENT CORP (CIM) has a profitability rating of 6 / 10.
What are the PE and PB ratios of CHIMERA INVESTMENT CORP (CIM) stock?
The Price/Earnings (PE) ratio for CHIMERA INVESTMENT CORP (CIM) is 7.91 and the Price/Book (PB) ratio is 0.38.
What is the financial health of CHIMERA INVESTMENT CORP (CIM) stock?
The financial health rating of CHIMERA INVESTMENT CORP (CIM) is 2 / 10.