CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
USA - NYSE:CIM - US16934Q8024 - REIT
12.87 USD
+0.08 (+0.63%)
12.87 USD
0 (0%)
CIM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 66 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 is valued quite cheap, while showing a decent growth score. This is a good 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.
In the past 5 years CIM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 0.71%, CIM is doing good in the industry, outperforming 77.27% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.01%, CIM is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
CIM has a better Return On Invested Capital (0.92%) than 78.79% of its industry peers.
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 | 0.71% | ||
| 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 80.30% of its industry peers.
In the last couple of years the Profit Margin of CIM has declined.
The Operating Margin of CIM (19.64%) is better than 83.33% of its industry peers.
CIM's Operating Margin has declined in the last couple of years.
CIM has a better Gross Margin (32.88%) than 72.73% 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
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
The number of shares outstanding for CIM has been increased compared to 5 years ago.
Compared to 1 year ago, CIM has an improved debt to assets ratio.
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's Altman-Z score of -0.53 is on the low side compared to the rest of the industry. CIM is outperformed by 69.70% 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 60.61% of the companies in the same industry.
A Debt/Equity ratio of 3.99 is on the high side and indicates that CIM has dependencies on debt financing.
With a Debt to Equity ratio value of 3.99, CIM perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 97.21 | ||
| Altman-Z | -0.53 |
ROIC/WACC0.19
WACC4.88%
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 Current ratio of 0.05. This is amonst the worse of the industry: CIM underperforms 81.82% 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.
CIM's Quick ratio of 0.05 is on the low side compared to the rest of the industry. CIM is outperformed by 81.82% 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.
The Revenue has been growing slightly by 3.20% in the past 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 quite strong growth in Earnings Per Share. The EPS will grow by 13.70% on average per year.
CIM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.19% yearly.
EPS Next Y25.21%
EPS Next 2Y16.29%
EPS Next 3Y13.7%
EPS Next 5YN/A
Revenue Next Year11.59%
Revenue Next 2Y10.64%
Revenue Next 3Y7.19%
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
With a Price/Earnings ratio of 8.41, the valuation of CIM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CIM indicates a somewhat cheap valuation: CIM is cheaper than 77.27% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CIM to the average of the S&P500 Index (27.35), we can say CIM is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.52, the valuation of CIM can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CIM indicates a rather cheap valuation: CIM is cheaper than 87.88% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. CIM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.41 | ||
| Fwd PE | 6.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIM is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
75.76% of the companies in the same industry are more expensive than CIM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.64 | ||
| EV/EBITDA | 52.11 |
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.
The decent profitability rating of CIM may justify a higher PE ratio.
A more expensive valuation may be justified as CIM's earnings are expected to grow with 13.70% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y16.29%
EPS Next 3Y13.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.76%, CIM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.06, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.76% |
5.2 History
The dividend of CIM decreases each year by -17.33%.
CIM has paid a dividend for at least 10 years, which is 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 2Y16.29%
EPS Next 3Y13.7%
12.87
+0.08 (+0.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners56.96%
Inst Owner Change0.04%
Ins Owners1.68%
Ins Owner Change0.92%
Market Cap1.04B
Analysts72.5
Price Target15.81 (22.84%)
Short Float %1.66%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.76% |
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)-1.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.41 | ||
| Fwd PE | 6.52 | ||
| P/S | 1.34 | ||
| P/FCF | 8.64 | ||
| P/OCF | 8.64 | ||
| P/B | 0.4 | ||
| P/tB | 0.4 | ||
| EV/EBITDA | 52.11 |
EPS(TTM)1.53
EY11.89%
EPS(NY)1.97
Fwd EY15.34%
FCF(TTM)1.49
FCFY11.57%
OCF(TTM)1.49
OCFY11.57%
SpS9.57
BVpS32.37
TBVpS32.37
PEG (NY)0.33
PEG (5Y)N/A
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%
ROICexcg growth 3Y-27.85%
ROICexcg 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
WACC4.88%
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 Y25.21%
EPS Next 2Y16.29%
EPS Next 3Y13.7%
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 Year11.59%
Revenue Next 2Y10.64%
Revenue Next 3Y7.19%
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%