CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
USA - NYSE:CIM - US16934Q8024 - REIT
14.17 USD
-0.26 (-1.8%)
14.26 USD
+0.09 (+0.64%)
Taking everything into account, CIM scores 5 out of 10 in our fundamental rating. CIM was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. CIM has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on CIM.
1. Profitability
1.1 Basic Checks
In the past year CIM was profitable.
CIM had a positive 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
The Return On Assets of CIM (0.71%) is better than 77.61% of its industry peers.
CIM's Return On Equity of 4.01% is fine compared to the rest of the industry. CIM outperforms 68.66% of its industry peers.
CIM's Return On Invested Capital of 0.92% is fine compared to the rest of the industry. CIM outperforms 79.10% 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 | 0.71% | ||
| 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's Profit Margin of 13.57% is amongst the best of the industry. CIM outperforms 80.60% of its industry peers.
In the last couple of years the Profit Margin of CIM has declined.
CIM has a Operating Margin of 19.64%. This is amongst the best in the industry. CIM outperforms 83.58% of its industry peers.
CIM's Operating Margin has declined in the last couple of years.
CIM's Gross Margin of 32.88% is fine compared to the rest of the industry. CIM outperforms 73.13% 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
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.
Compared to 5 years ago, CIM has more shares outstanding
CIM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.52, we must say that CIM is in the distress zone and has some risk of bankruptcy.
CIM has a worse Altman-Z score (-0.52) than 67.16% 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.
CIM's Debt to FCF ratio of 97.21 is fine compared to the rest of the industry. CIM outperforms 61.19% of its industry peers.
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 | -0.52 |
ROIC/WACC0.18
WACC4.98%
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.
With a Current ratio value of 0.05, CIM is not doing good in the industry: 82.09% of the companies in the same industry are doing better.
A Quick Ratio of 0.05 indicates that CIM may have some problems paying its short term obligations.
The Quick ratio of CIM (0.05) is worse than 82.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
CIM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.32%.
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 13.70% on average over the next years. This is quite good.
Based on estimates for the next years, CIM will show a small growth in Revenue. The Revenue will grow by 7.19% on average per year.
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
Based on the Price/Earnings ratio of 9.26, the valuation of CIM can be described as reasonable.
CIM's Price/Earnings ratio is a bit cheaper when compared to the industry. CIM is cheaper than 76.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of CIM to the average of the S&P500 Index (27.30), we can say CIM is valued rather cheaply.
A Price/Forward Earnings ratio of 7.18 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 83.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. CIM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 7.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIM is valued cheaply inside the industry as 86.57% of the companies are valued more expensively.
CIM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CIM is cheaper than 76.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.51 | ||
| EV/EBITDA | 52.85 |
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)0.37
PEG (5Y)N/A
EPS Next 2Y16.29%
EPS Next 3Y13.7%
5. Dividend
5.1 Amount
CIM has a Yearly Dividend Yield of 10.26%, which is a nice return.
CIM's Dividend Yield is comparable with the industry average which is at 11.44.
Compared to an average S&P500 Dividend Yield of 2.41, CIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.26% |
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 2Y16.29%
EPS Next 3Y13.7%
14.17
-0.26 (-1.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners58.53%
Inst Owner Change-1.95%
Ins Owners1.68%
Ins Owner Change1.12%
Market Cap1.15B
Analysts72.5
Price Target15.81 (11.57%)
Short Float %1.73%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.26% |
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)-0.72%
EPS NQ rev (3m)2.96%
EPS NY rev (1m)-1.63%
EPS NY rev (3m)-4.57%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)3.03%
Revenue NY rev (1m)-2.13%
Revenue NY rev (3m)-2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 7.18 | ||
| P/S | 1.48 | ||
| P/FCF | 9.51 | ||
| P/OCF | 9.51 | ||
| P/B | 0.44 | ||
| P/tB | 0.44 | ||
| EV/EBITDA | 52.85 |
EPS(TTM)1.53
EY10.8%
EPS(NY)1.97
Fwd EY13.93%
FCF(TTM)1.49
FCFY10.51%
OCF(TTM)1.49
OCFY10.51%
SpS9.57
BVpS32.37
TBVpS32.37
PEG (NY)0.37
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 | -0.52 |
F-Score6
WACC4.98%
ROIC/WACC0.18
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%