CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
USA - NYSE:CIM - US16934Q8024 - REIT
12.82 USD
+0.14 (+1.1%)
12.7451 USD
-0.07 (-0.58%)
Taking everything into account, CIM scores 5 out of 10 in our fundamental rating. CIM was compared to 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. 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.
In the past year CIM had a positive cash flow from operations.
CIM had positive earnings in 4 of the past 5 years.
CIM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 0.71%, CIM is doing good in the industry, outperforming 77.94% of the companies in the same industry.
CIM has a Return On Equity of 4.01%. This is in the better half of the industry: CIM outperforms 69.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.92%, CIM is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
CIM had an Average Return On Invested Capital over the past 3 years of 1.06%. This is in line with the industry average of 1.18%.
| 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 Profit Margin of 13.57%. This is amongst the best in the industry. CIM outperforms 80.88% of its industry peers.
In the last couple of years the Profit Margin of CIM has declined.
CIM has a better Operating Margin (19.64%) than 83.82% of its industry peers.
In the last couple of years the Operating Margin of CIM has declined.
The Gross Margin of CIM (32.88%) is better than 70.59% of its industry peers.
CIM's Gross Margin has declined in the last couple of years.
| 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
CIM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CIM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CIM has been increased compared to 5 years ago.
CIM has a better debt/assets ratio than last year.
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.
CIM has a Altman-Z score of -0.53. This is in the lower half of the industry: CIM underperforms 67.65% of its industry peers.
CIM has a debt to FCF ratio of 97.21. This is a negative value and a sign of low solvency as CIM would need 97.21 years to pay back of 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 64.71% 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.
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/WACC0.19
WACC4.91%
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.
CIM has a worse Current ratio (0.05) than 79.41% of its industry peers.
CIM has a Quick 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.
Looking at the Quick ratio, with a value of 0.05, CIM is doing worse than 79.41% 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.
Measured over the past years, CIM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.31% on average per year.
CIM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.20%.
CIM shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.37% yearly.
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
The Earnings Per Share is expected to grow by 20.03% on average over the next years. This is a very strong growth
CIM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.51% yearly.
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
Based on the Price/Earnings ratio of 8.38, the valuation of CIM can be described as reasonable.
76.47% of the companies in the same industry are more expensive than CIM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.03, CIM is valued rather cheaply.
CIM is valuated cheaply with a Price/Forward Earnings ratio of 5.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CIM indicates a rather cheap valuation: CIM is cheaper than 91.18% of the companies listed in the same industry.
CIM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 5.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIM is valued cheaply inside the industry as 86.76% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CIM is valued a bit cheaper than 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.83 | ||
| EV/EBITDA | 52.3 |
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.
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)0.29
PEG (5Y)N/A
EPS Next 2Y26.96%
EPS Next 3Y20.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.54%, CIM is a good candidate for dividend investing.
CIM's Dividend Yield is slightly below the industry average, which is at 13.23.
CIM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.54% |
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 2Y26.96%
EPS Next 3Y20.03%
12.82
+0.14 (+1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners56.96%
Inst Owner Change-0.85%
Ins Owners1.68%
Ins Owner Change0.92%
Market Cap1.07B
Revenue(TTM)776.19M
Net Income(TTM)105.36M
Analysts72.5
Price Target15.81 (23.32%)
Short Float %2.43%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.54% |
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 | 8.38 | ||
| Fwd PE | 5.45 | ||
| P/S | 1.37 | ||
| P/FCF | 8.83 | ||
| P/OCF | 8.83 | ||
| P/B | 0.41 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 52.3 |
EPS(TTM)1.53
EY11.93%
EPS(NY)2.35
Fwd EY18.36%
FCF(TTM)1.45
FCFY11.33%
OCF(TTM)1.45
OCFY11.33%
SpS9.33
BVpS31.56
TBVpS31.56
PEG (NY)0.29
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
WACC4.91%
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 8.38 and the Price/Book (PB) ratio is 0.41.
What is the financial health of CHIMERA INVESTMENT CORP (CIM) stock?
The financial health rating of CHIMERA INVESTMENT CORP (CIM) is 2 / 10.