CHIMERA INVESTMENT CORP (CIM) Stock Fundamental Analysis
NYSE:CIM - New York Stock Exchange, Inc. - US16934Q8024 - REIT - Currency: USD
Taking everything into account, CIM scores 4 out of 10 in our fundamental rating. CIM was compared to 64 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
CIM had positive earnings in the past year.
CIM had a positive 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 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 1.98%, CIM belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.89%, CIM belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.95%, CIM is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CIM is in line with the industry average of 1.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 9.89% | ||
| ROIC | 0.95% |
ROA(3y)-1.1%
ROA(5y)0.13%
ROE(3y)-5.46%
ROE(5y)0%
ROIC(3y)1.02%
ROIC(5y)1.68%
1.3 Margins
Looking at the Profit Margin, with a value of 35.98%, CIM belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
CIM's Profit Margin has declined in the last couple of years.
CIM has a Operating Margin of 21.48%. This is in the better half of the industry: CIM outperforms 71.88% of its industry peers.
In the last couple of years the Operating Margin of CIM has declined.
With a Gross Margin value of 30.03%, CIM perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
CIM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.48% | ||
| PM (TTM) | 35.98% | ||
| GM | 30.03% |
OM growth 3Y-27.82%
OM growth 5Y-11.26%
PM growth 3Y-41.81%
PM growth 5Y-13.49%
GM growth 3Y-21.59%
GM growth 5Y-6.46%
2. Health
2.1 Basic Checks
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 -0.32. 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 -0.32 is on the low side compared to the rest of the industry. CIM is outperformed by 60.94% of its industry peers.
The Debt to FCF ratio of CIM is 54.01, which is on the high side as it means it would take CIM, 54.01 years of fcf income to pay off all of its debts.
CIM's Debt to FCF ratio of 54.01 is in line compared to the rest of the industry. CIM outperforms 57.81% of its industry peers.
CIM has a Debt/Equity ratio of 3.93. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.93, CIM perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.93 | ||
| Debt/FCF | 54.01 | ||
| Altman-Z | -0.32 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.05 indicates that CIM may have some problems paying its short term obligations.
CIM has a Current ratio of 0.05. This is in the lower half of the industry: CIM underperforms 79.69% 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 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
CIM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.58%.
CIM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.31% yearly.
CIM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.90%.
The Revenue for CIM have been decreasing by -11.37% on average. This is quite bad
EPS 1Y (TTM)-4.58%
EPS 3Y-35.1%
EPS 5Y-26.31%
EPS Q2Q%-5.13%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y-8.39%
Revenue growth 5Y-11.37%
Sales Q2Q%1.81%
3.2 Future
CIM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.43% yearly.
Based on estimates for the next years, CIM will show a small growth in Revenue. The Revenue will grow by 5.36% on average per year.
EPS Next Y15.76%
EPS Next 2Y10.97%
EPS Next 3Y11.43%
EPS Next 5YN/A
Revenue Next Year9.26%
Revenue Next 2Y5.12%
Revenue Next 3Y5.36%
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
A Price/Earnings ratio of 9.42 indicates a reasonable valuation of CIM.
Based on the Price/Earnings ratio, CIM is valued a bit cheaper than the industry average as 73.44% of the companies are valued more expensively.
CIM is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
CIM is valuated reasonably with a Price/Forward Earnings ratio of 8.14.
CIM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CIM is cheaper than 70.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, CIM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 8.14 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CIM is valued cheaper than 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.59 | ||
| EV/EBITDA | N/A |
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.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y10.97%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
CIM has a Yearly Dividend Yield of 10.69%, which is a nice return.
Compared to an average industry Dividend Yield of 12.96, CIM is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.27, CIM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.69% |
5.2 History
The dividend of CIM decreases each year by -13.82%.
CIM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-13.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
79.10% of the earnings are spent on dividend by CIM. This is not a sustainable payout ratio.
DP79.1%
EPS Next 2Y10.97%
EPS Next 3Y11.43%
13.76
-0.08 (-0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners57.09%
Inst Owner Change0.24%
Ins Owners1.54%
Ins Owner Change7.6%
Market Cap1.11B
Analysts50
Price Target16.07 (16.79%)
Short Float %1.32%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.69% |
Yearly Dividend3.18
Dividend Growth(5Y)-13.82%
DP79.1%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.46%
Min EPS beat(2)-19.72%
Max EPS beat(2)-13.19%
EPS beat(4)0
Avg EPS beat(4)-22.47%
Min EPS beat(4)-30.92%
Max EPS beat(4)-13.19%
EPS beat(8)0
Avg EPS beat(8)-27.35%
EPS beat(12)2
Avg EPS beat(12)-17.1%
EPS beat(16)5
Avg EPS beat(16)-7.64%
Revenue beat(2)0
Avg Revenue beat(2)-8.57%
Min Revenue beat(2)-10.56%
Max Revenue beat(2)-6.57%
Revenue beat(4)0
Avg Revenue beat(4)-10.97%
Min Revenue beat(4)-18.89%
Max Revenue beat(4)-6.57%
Revenue beat(8)1
Avg Revenue beat(8)-7.22%
Revenue beat(12)5
Avg Revenue beat(12)10.12%
Revenue beat(16)9
Avg Revenue beat(16)31.42%
PT rev (1m)-1.56%
PT rev (3m)-3.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)4.33%
Revenue NQ rev (3m)4.48%
Revenue NY rev (1m)2.41%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 8.14 | ||
| P/S | 1.48 | ||
| P/FCF | 5.59 | ||
| P/OCF | 5.59 | ||
| P/B | 0.41 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.46
EY10.61%
EPS(NY)1.69
Fwd EY12.28%
FCF(TTM)2.46
FCFY17.89%
OCF(TTM)2.46
OCFY17.89%
SpS9.3
BVpS33.84
TBVpS33.84
PEG (NY)0.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 9.89% | ||
| ROCE | 1.58% | ||
| ROIC | 0.95% | ||
| ROICexc | 0.95% | ||
| ROICexgc | 0.96% | ||
| OM | 21.48% | ||
| PM (TTM) | 35.98% | ||
| GM | 30.03% | ||
| FCFM | 26.46% |
ROA(3y)-1.1%
ROA(5y)0.13%
ROE(3y)-5.46%
ROE(5y)0%
ROIC(3y)1.02%
ROIC(5y)1.68%
ROICexc(3y)1.04%
ROICexc(5y)1.71%
ROICexgc(3y)1.04%
ROICexgc(5y)1.72%
ROCE(3y)1.68%
ROCE(5y)2.79%
ROICexcg growth 3Y-30.33%
ROICexcg growth 5Y-9.05%
ROICexc growth 3Y-30.56%
ROICexc growth 5Y-9.16%
OM growth 3Y-27.82%
OM growth 5Y-11.26%
PM growth 3Y-41.81%
PM growth 5Y-13.49%
GM growth 3Y-21.59%
GM growth 5Y-6.46%
F-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.93 | ||
| Debt/FCF | 54.01 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.34 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 73.53% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.32 |
F-Score6
WACCN/A
ROIC/WACCN/A
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)-4.58%
EPS 3Y-35.1%
EPS 5Y-26.31%
EPS Q2Q%-5.13%
EPS Next Y15.76%
EPS Next 2Y10.97%
EPS Next 3Y11.43%
EPS Next 5YN/A
Revenue 1Y (TTM)1.9%
Revenue growth 3Y-8.39%
Revenue growth 5Y-11.37%
Sales Q2Q%1.81%
Revenue Next Year9.26%
Revenue Next 2Y5.12%
Revenue Next 3Y5.36%
Revenue Next 5YN/A
EBIT growth 1Y104.71%
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-4.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-4.48%
OCF growth 3YN/A
OCF growth 5YN/A