CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIM - US16934Q8024 - REIT
12.89 USD
0 (0%)
12.9 USD
+0.01 (+0.08%)
We assign a fundamental rating of 3 out of 10 to CIM. CIM was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of CIM have multiple concerns. 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.
- CIM had a negative operating cash flow in the past year.
- Of the past 5 years CIM 4 years were profitable.
- In the past 5 years CIM always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of CIM (-0.20%) is worse than 66.18% of its industry peers.
- CIM has a worse Return On Equity (-1.18%) than 66.18% of its industry peers.
- CIM's Return On Invested Capital of 0.83% is fine compared to the rest of the industry. CIM outperforms 75.00% 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 | -0.2% | ||
| 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 has a better Operating Margin (18.08%) than 72.06% of its industry peers.
- In the last couple of years the Operating Margin of CIM has declined.
- CIM's Gross Margin of 33.41% is fine compared to the rest of the industry. CIM outperforms 70.59% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CIM is destroying value.
- The number of shares outstanding for CIM has been increased compared to 1 year ago.
- 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.
- 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.
- 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
WACC4.92%
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.
- 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'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
- 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.
- 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)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
- The Earnings Per Share is expected to grow by 15.14% on average over the next years. This is quite good.
- CIM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.18% yearly.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 8.37, 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.
- The average S&P500 Price/Earnings ratio is at 27.21. CIM is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 6.07 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 91.18% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CIM to the average of the S&P500 Index (25.98), we can say CIM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 6.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CIM is valued cheaply inside the industry as 85.29% of the companies are valued more expensively.
| 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.
- 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.
- CIM's Dividend Yield is comparable with the industry average which is at 11.26.
- Compared to an average S&P500 Dividend Yield of 1.81, CIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.48% |
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
- The earnings of CIM are negative and hence is the payout ratio. CIM will probably not be able to sustain this dividend level.
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%.