CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIM - US16934Q8024 - REIT
12.93 USD
-0.05 (-0.39%)
CIM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. CIM may be in some trouble as it scores bad on both profitability and health. CIM may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- CIM had positive earnings in the past year.
- In the past year CIM has reported a negative cash flow from operations.
- 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
- The Return On Assets of CIM (-0.20%) is worse than 66.18% of its industry peers.
- The Return On Equity of CIM (-1.18%) is worse than 66.18% of its industry peers.
- With a decent Return On Invested Capital value of 0.83%, CIM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CIM is in line with the industry average of 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.2% | ||
| ROE | -1.18% | ||
| ROIC | 0.83% |
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's Profit Margin has declined in the last couple of years.
- CIM's Operating Margin of 18.08% is fine compared to the rest of the industry. CIM outperforms 72.06% of its industry peers.
- In the last couple of years the Operating Margin of CIM has declined.
- Looking at the Gross Margin, with a value of 33.41%, CIM is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
- CIM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.08% | ||
| PM (TTM) | N/A | ||
| GM | 33.41% |
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.
- Compared to 1 year ago, CIM has more shares outstanding
- CIM has more shares outstanding than it did 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 -0.50, we must say that CIM is in the distress zone and has some risk of bankruptcy.
- CIM's Altman-Z score of -0.50 is on the low side compared to the rest of the industry. CIM is outperformed by 64.71% of its industry peers.
- A Debt/Equity ratio of 4.27 is on the high side and indicates that CIM has dependencies on debt financing.
- CIM has a Debt to Equity ratio (4.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.5 |
ROIC/WACC0.17
WACC4.93%
2.3 Liquidity
- A Current Ratio of 0.12 indicates that CIM may have some problems paying its short term obligations.
- With a Current ratio value of 0.12, CIM perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
- A Quick Ratio of 0.12 indicates that CIM may have some problems paying its short term obligations.
- CIM's Quick ratio of 0.12 is in line compared to the rest of the industry. CIM outperforms 41.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.05% 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.
- CIM shows a small growth in Revenue. In the last year, the Revenue has grown by 5.28%.
- The Revenue for CIM have been decreasing by -11.37% on average. This is quite bad
EPS 1Y (TTM)4.05%
EPS 3Y-35.1%
EPS 5Y-26.31%
EPS Q2Q%2.78%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y-8.39%
Revenue growth 5Y-11.37%
Sales Q2Q%-2.17%
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 15.14% on average per year.
- Based on estimates for the next years, CIM will show a quite strong growth in Revenue. The Revenue will grow by 11.18% on average per year.
EPS Next Y22.62%
EPS Next 2Y20.63%
EPS Next 3Y15.14%
EPS Next 5YN/A
Revenue Next Year6.23%
Revenue Next 2Y16.46%
Revenue Next 3Y11.18%
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 8.40, which indicates a very decent valuation of CIM.
- Compared to the rest of the industry, the Price/Earnings ratio of CIM indicates a rather cheap valuation: CIM is cheaper than 80.88% of the companies listed in the same industry.
- CIM is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 6.09, the valuation of CIM can be described as very cheap.
- 91.18% of the companies in the same industry are more expensive than CIM, based on the Price/Forward Earnings ratio.
- CIM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 6.09 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 55.26 |
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.
- A more expensive valuation may be justified as CIM's earnings are expected to grow with 15.14% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y20.63%
EPS Next 3Y15.14%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 11.48%, CIM is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 11.26, CIM has a dividend in line with its industry peers.
- CIM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.48% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-682.63%
EPS Next 2Y20.63%
EPS Next 3Y15.14%
CHIMERA INVESTMENT CORP / CIM FAQ
Can you provide the ChartMill fundamental rating for CHIMERA INVESTMENT CORP?
ChartMill assigns a fundamental rating of 3 / 10 to CIM.
What is the valuation status for CIM stock?
ChartMill assigns a valuation rating of 7 / 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 3 / 10.
Can you provide the PE and PB ratios for CIM stock?
The Price/Earnings (PE) ratio for CHIMERA INVESTMENT CORP (CIM) is 8.4 and the Price/Book (PB) ratio is 0.42.
Can you provide the dividend sustainability for CIM stock?
The dividend rating of CHIMERA INVESTMENT CORP (CIM) is 4 / 10 and the dividend payout ratio is -682.63%.