CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIM - US16934Q8024 - REIT
12.89 USD
0 (0%)
12.89 USD
0 (0%)
Taking everything into account, CIM scores 3 out of 10 in our fundamental rating. CIM was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. CIM has a bad profitability rating. Also its financial health evaluation is rather negative. CIM scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year CIM was profitable.
- CIM had a negative operating cash flow in the past year.
- CIM had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years CIM had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -0.20%, CIM is not doing good in the industry: 66.18% of the companies in the same industry are doing better.
- CIM has a worse Return On Equity (-1.18%) than 66.18% of its industry peers.
- CIM has a better Return On Invested Capital (0.83%) than 75.00% 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 1.28%.
| 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.
- Looking at the Operating Margin, with a value of 18.08%, CIM is in the better half of the industry, outperforming 72.06% of the companies in the same industry.
- CIM's Operating Margin has declined in the last couple of years.
- 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
- CIM has an Altman-Z score of -0.50. 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 -0.50, CIM is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
- CIM has a Debt/Equity ratio of 4.27. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of CIM (4.27) 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.
- CIM has a Current ratio (0.12) which is comparable to the rest of the industry.
- CIM has a Quick Ratio of 0.12. 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 Quick ratio (0.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
- CIM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.05%.
- 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.
- Looking at the last year, CIM shows a small growth in Revenue. The Revenue has grown by 5.28% in the last year.
- 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
- CIM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.14% yearly.
- Based on estimates for the next years, CIM will show a quite strong growth in Revenue. The Revenue will grow by 8.85% on average per year.
EPS Next Y22.62%
EPS Next 2Y20.63%
EPS Next 3Y15.14%
EPS Next 5YN/A
Revenue Next Year7.21%
Revenue Next 2Y14.13%
Revenue Next 3Y8.85%
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
- Based on the Price/Earnings ratio of 8.37, the valuation of CIM can be described as reasonable.
- Based on the Price/Earnings ratio, CIM is valued cheaper than 80.88% of the companies in the same industry.
- CIM is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 6.07 indicates a rather cheap valuation of CIM.
- Based on the Price/Forward Earnings ratio, CIM is valued cheaply inside the industry as 91.18% of the companies are valued more expensively.
- CIM is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 6.07 |
4.2 Price Multiples
- CIM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CIM is cheaper than 85.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 55.21 |
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's earnings are expected to grow with 15.14% in the coming years. This may justify a more expensive valuation.
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 8.87%, CIM is a good candidate for dividend investing.
- With a Dividend Yield of 8.87, CIM pays less dividend than the industry average, which is at 11.01. 83.82% of the companies listed in the same industry pay a better dividend than CIM!
- 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 | 8.87% |
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 8.37 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%.