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%)
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 may be in some trouble as it scores bad on both profitability and health. A decent growth rate in combination with a cheap valuation! Better keep an eye on CIM.
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.
- CIM had positive earnings in 4 of the past 5 years.
- CIM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CIM has a worse Return On Assets (-0.20%) than 66.18% of its industry peers.
- With a Return On Equity value of -1.18%, CIM is not doing good in the industry: 66.18% of the companies in the same industry are doing better.
- CIM has a Return On Invested Capital of 0.83%. This is in the better half of the industry: CIM outperforms 75.00% of its industry peers.
- 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 1.28%.
| 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.
- CIM's Operating Margin has declined in the last couple of years.
- The Gross Margin of CIM (33.41%) is better than 70.59% of its industry peers.
- In the last couple of years the Gross Margin of CIM has declined.
| 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
- 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 -0.50, we must say that CIM is in the distress zone and has some risk of bankruptcy.
- CIM has a worse Altman-Z score (-0.50) than 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
WACC4.93%
2.3 Liquidity
- CIM has a Current 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.
- The Current ratio of CIM (0.12) 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.
- The Quick ratio of CIM (0.12) is comparable to the rest of the industry.
| 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%.
- The earnings per share for CIM have been decreasing by -26.31% on average. This is quite bad
- Looking at the last year, CIM shows a small growth in Revenue. The Revenue has grown by 5.28% in the last year.
- 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)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.
- 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
- With a Price/Earnings ratio of 8.37, the valuation of CIM can be described as very reasonable.
- CIM's Price/Earnings ratio is rather cheap when compared to the industry. CIM is cheaper than 80.88% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CIM to the average of the S&P500 Index (27.21), we can say CIM is valued rather cheaply.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, CIM is valued rather cheaply.
| 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
- CIM's 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
- CIM has a Yearly Dividend Yield of 8.87%, which is a nice return.
- 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 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
- 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%.