CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
NYSE:CIM - New York Stock Exchange, Inc. - US16934Q8024 - REIT - Currency: USD
CIM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of CIM while its profitability can be described as average. CIM is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years CIM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.95%, CIM is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
CIM has a better Return On Equity (4.74%) than 70.77% of its industry peers.
With a decent Return On Invested Capital value of 1.03%, CIM is doing good in the industry, outperforming 72.31% of the companies in the same industry.
CIM had an Average Return On Invested Capital over the past 3 years of 1.06%. This is in line with the industry average of 1.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 4.74% | ||
| ROIC | 1.03% |
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
With an excellent Profit Margin value of 16.40%, CIM belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
In the last couple of years the Profit Margin of CIM has declined.
The Operating Margin of CIM (20.16%) is better than 81.54% of its industry peers.
CIM's Operating Margin has declined in the last couple of years.
CIM's Gross Margin of 32.66% is fine compared to the rest of the industry. CIM outperforms 72.31% of its industry peers.
In the last couple of years the Gross Margin of CIM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.16% | ||
| PM (TTM) | 16.4% | ||
| GM | 32.67% |
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.
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.
Compared to 1 year ago, CIM has an improved debt to assets ratio.
2.2 Solvency
CIM has an Altman-Z score of -0.41. This is a bad value and indicates that CIM is not financially healthy and even has some risk of bankruptcy.
CIM has a worse Altman-Z score (-0.41) than 63.08% of its industry peers.
The Debt to FCF ratio of CIM is 52.72, which is on the high side as it means it would take CIM, 52.72 years of fcf income to pay off all of its debts.
CIM has a Debt to FCF ratio (52.72) which is in line with its industry peers.
A Debt/Equity ratio of 3.45 is on the high side and indicates that CIM has dependencies on debt financing.
CIM has a Debt to Equity ratio of 3.45. This is in the better half of the industry: CIM outperforms 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.45 | ||
| Debt/FCF | 52.72 | ||
| Altman-Z | -0.41 |
ROIC/WACC0.21
WACC4.99%
2.3 Liquidity
CIM has a Current Ratio of 0.08. 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 0.08, CIM is not doing good in the industry: 63.08% of the companies in the same industry are doing better.
A Quick Ratio of 0.08 indicates that CIM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.08, CIM is doing worse than 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.08 | ||
| Quick Ratio | 0.08 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.67% 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 3.11% 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)0.67%
EPS 3Y-35.1%
EPS 5Y-26.31%
EPS Q2Q%13.89%
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-8.39%
Revenue growth 5Y-11.37%
Sales Q2Q%6.32%
3.2 Future
The Earnings Per Share is expected to grow by 12.08% 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 6.73% on average per year.
EPS Next Y31.21%
EPS Next 2Y14.8%
EPS Next 3Y12.08%
EPS Next 5YN/A
Revenue Next Year14.43%
Revenue Next 2Y8.59%
Revenue Next 3Y6.73%
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
CIM is valuated reasonably with a Price/Earnings ratio of 9.19.
Based on the Price/Earnings ratio, CIM is valued a bit cheaper than 72.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, CIM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.21, the valuation of CIM can be described as very cheap.
CIM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CIM is cheaper than 73.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, CIM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
87.69% of the companies in the same industry are more expensive than CIM, based on the Enterprise Value to EBITDA ratio.
86.15% 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 | 5.7 | ||
| EV/EBITDA | 53.74 |
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.
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 12.08% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y14.8%
EPS Next 3Y12.08%
5. Dividend
5.1 Amount
CIM has a Yearly Dividend Yield of 10.50%, which is a nice return.
CIM's Dividend Yield is comparable with the industry average which is at 11.56.
Compared to an average S&P500 Dividend Yield of 2.42, CIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.5% |
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
183.58% of the earnings are spent on dividend by CIM. This is not a sustainable payout ratio.
DP183.58%
EPS Next 2Y14.8%
EPS Next 3Y12.08%
13.87
-0.19 (-1.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners57.83%
Inst Owner Change-30.99%
Ins Owners1.61%
Ins Owner Change5.82%
Market Cap1.12B
Analysts72.5
Price Target16.07 (15.86%)
Short Float %1.98%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.5% |
Yearly Dividend2.77
Dividend Growth(5Y)-17.33%
DP183.58%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.58%
Min EPS beat(2)-21.72%
Max EPS beat(2)-15.43%
EPS beat(4)0
Avg EPS beat(4)-17.52%
Min EPS beat(4)-21.72%
Max EPS beat(4)-13.19%
EPS beat(8)0
Avg EPS beat(8)-22.83%
EPS beat(12)0
Avg EPS beat(12)-22.15%
EPS beat(16)4
Avg EPS beat(16)-10.59%
Revenue beat(2)0
Avg Revenue beat(2)-12.88%
Min Revenue beat(2)-15.96%
Max Revenue beat(2)-9.79%
Revenue beat(4)0
Avg Revenue beat(4)-10.72%
Min Revenue beat(4)-15.96%
Max Revenue beat(4)-6.57%
Revenue beat(8)0
Avg Revenue beat(8)-14.28%
Revenue beat(12)3
Avg Revenue beat(12)-0.2%
Revenue beat(16)7
Avg Revenue beat(16)16.03%
PT rev (1m)12.5%
PT rev (3m)0%
EPS NQ rev (1m)6.98%
EPS NQ rev (3m)12.2%
EPS NY rev (1m)0%
EPS NY rev (3m)15.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 7.21 | ||
| P/S | 1.47 | ||
| P/FCF | 5.7 | ||
| P/OCF | 5.7 | ||
| P/B | 0.42 | ||
| P/tB | 0.42 | ||
| EV/EBITDA | 53.74 |
EPS(TTM)1.51
EY10.89%
EPS(NY)1.92
Fwd EY13.87%
FCF(TTM)2.44
FCFY17.56%
OCF(TTM)2.44
OCFY17.56%
SpS9.43
BVpS32.65
TBVpS32.65
PEG (NY)0.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 4.74% | ||
| ROCE | 1.75% | ||
| ROIC | 1.03% | ||
| ROICexc | 1.06% | ||
| ROICexgc | 1.07% | ||
| OM | 20.16% | ||
| PM (TTM) | 16.4% | ||
| GM | 32.67% | ||
| FCFM | 25.83% |
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-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.45 | ||
| Debt/FCF | 52.72 | ||
| Debt/EBITDA | 59.13 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.32 | ||
| Cash Conversion | 127.85% | ||
| Profit Quality | 157.44% | ||
| Current Ratio | 0.08 | ||
| Quick Ratio | 0.08 | ||
| Altman-Z | -0.41 |
F-Score5
WACC4.99%
ROIC/WACC0.21
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)0.67%
EPS 3Y-35.1%
EPS 5Y-26.31%
EPS Q2Q%13.89%
EPS Next Y31.21%
EPS Next 2Y14.8%
EPS Next 3Y12.08%
EPS Next 5YN/A
Revenue 1Y (TTM)3.11%
Revenue growth 3Y-8.39%
Revenue growth 5Y-11.37%
Sales Q2Q%6.32%
Revenue Next Year14.43%
Revenue Next 2Y8.59%
Revenue Next 3Y6.73%
Revenue Next 5YN/A
EBIT growth 1Y23.93%
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-10.46%
FCF growth 3Y-26.56%
FCF growth 5Y25.89%
OCF growth 1Y-10.46%
OCF growth 3Y-26.56%
OCF growth 5Y25.89%