DB:4CR1

Stock Analysis Report

Executive Summary

Chimera Investment Corporation operates as a real estate investment trust in the United States.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Chimera Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4CR1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

4CR1

0.09%

DE Mortgage REITs

-0.3%

DE Market


1 Year Return

12.3%

4CR1

-1.4%

DE Mortgage REITs

10.9%

DE Market

Return vs Industry: 4CR1 exceeded the German Mortgage REITs industry which returned -1.4% over the past year.

Return vs Market: 4CR1 exceeded the German Market which returned 10.9% over the past year.


Shareholder returns

4CR1IndustryMarket
7 Day0%0.09%-0.3%
30 Day0.5%-0.08%2.6%
90 Day5.1%4.6%11.8%
1 Year24.8%12.3%9.8%-1.4%14.4%10.9%
3 Year62.1%17.6%38.2%-0.2%24.1%13.2%
5 Year261.1%36.3%52.6%-12.3%33.0%14.8%

Price Volatility Vs. Market

How volatile is Chimera Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Chimera Investment undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 4CR1 (€18.3) is trading below our estimate of fair value (€47.08)

Significantly Below Fair Value: 4CR1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 4CR1 is poor value based on its PE Ratio (33.9x) compared to the Mortgage REITs industry average (13.1x).

PE vs Market: 4CR1 is poor value based on its PE Ratio (33.9x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: 4CR1 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 4CR1 is good value based on its PB Ratio (0.9x) compared to the XX Mortgage REITs industry average (1x).


Next Steps

Future Growth

How is Chimera Investment forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4CR1's forecast earnings growth (28.6% per year) is above the savings rate (0.2%).

Earnings vs Market: 4CR1's earnings (28.6% per year) are forecast to grow faster than the German market (12.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 4CR1's revenue (2.4% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: 4CR1's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4CR1's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Chimera Investment performed over the past 5 years?

-7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4CR1 has large one-off items impacting its financial results.

Growing Profit Margin: 4CR1's current net profit margins (17.3%) are lower than last year (83.9%).


Past Earnings Growth Analysis

Earnings Trend: 4CR1's earnings have declined by -7.6% per year over the past 5 years.

Accelerating Growth: 4CR1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4CR1 had negative earnings growth (-80.9%) over the past year, making it difficult to compare to the Mortgage REITs industry average (-0.9%).


Return on Equity

High ROE: 4CR1's Return on Equity (4.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chimera Investment's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 4CR1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 4CR1's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: 4CR1's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 4CR1 has a sufficient allowance for bad loans.

Low Risk Liabilities: 4CR1 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 4CR1 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 4CR1 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 4CR1 has an appropriate level of bad loans.


Next Steps

Dividend

What is Chimera Investment's current dividend yield, its reliability and sustainability?

9.89%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Chimera Investment before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company9.9%marketbottom25%1.4%markettop25%3.7%industryaverage10.2%forecastin3Years10.0%

Current dividend yield vs market & industry

Notable Dividend: 4CR1's dividend (9.89%) is higher than the bottom 25% of dividend payers in the German market (1.4%).

High Dividend: 4CR1's dividend (9.89%) is in the top 25% of dividend payers in the German market (3.73%)


Stability and Growth of Payments

Stable Dividend: 4CR1's dividend payments have been volatile in the past 10 years.

Growing Dividend: 4CR1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (334.9%), 4CR1's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 4CR1's dividends in 3 years are not forecast to be well covered by earnings (90.6% payout ratio).


Next Steps

Management

What is the CEO of Chimera Investment's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Matt Lambiase (53yo)

12.3yrs

Tenure

US$6,691,295

Compensation

Mr. Matthew J. Lambiase, also known as Matt, has been the President and Chief Executive Officer at Chimera Investment Corporation since August 2007. Mr. Lambiase served as a Managing Director of Structured ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD6.69M) is above average for companies of similar size in the German market ($USD2.73M).

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.9yrs

Average Tenure

53yo

Average Age

Experienced Management: 4CR1's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

9.6yrs

Average Tenure

61yo

Average Age

Experienced Board: 4CR1's board of directors are considered experienced (9.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Matt Lambiase (53yo)

    President

    • Tenure: 12.3yrs
    • Compensation: US$6.69m
  • Mohit Marria (41yo)

    Chief Investment Officer

    • Tenure: 5.9yrs
    • Compensation: US$2.89m
  • Phillip Kardis (58yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 4.2yrs
    • Compensation: US$3.02m
  • Rob Colligan (48yo)

    Chief Financial Officer

    • Tenure: 6.5yrs
    • Compensation: US$2.64m
  • Choudhary Yarlagadda (57yo)

    Chief Operating Officer

    • Tenure: 4.3yrs
    • Compensation: US$4.77m
  • Emily Mohr

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Jack Reilly (71yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$211.67k
  • Teresa A. Bazemore (59yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$211.67k
  • Mark Abrams (70yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$226.67k
  • Debra Still (66yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$176.11k
  • Gerry Creagh (61yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$220.42k
  • Matt Lambiase (53yo)

    President

    • Tenure: 12.3yrs
    • Compensation: US$6.69m
  • Paul Donlin (58yo)

    Non-Executive Chairman

    • Tenure: 12yrs
    • Compensation: US$288.33k
  • Dennis Mahoney (77yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$245.42k
  • Brian Reilly (59yo)

    Independent Director

    • Tenure: 0.3yrs

Company Information

Chimera Investment Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chimera Investment Corporation
  • Ticker: 4CR1
  • Exchange: DB
  • Founded: 2007
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$3.784b
  • Listing Market Cap: US$3.420b
  • Shares outstanding: 187.16m
  • Website: https://www.chimerareit.com

Number of Employees


Location

  • Chimera Investment Corporation
  • 520 Madison Avenue
  • 32nd Floor
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIMNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2007
4CR1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2007
CIM.PRANYSE (New York Stock Exchange)PFD SER AUSUSDOct 2016
CIM.PRBNYSE (New York Stock Exchange)PFD SER BUSUSDFeb 2017
CIM.PRCNYSE (New York Stock Exchange)7.75% CUM PFD CUSUSDSep 2018
CIM.PRDNYSE (New York Stock Exchange)8% PFD CUM SER DUSUSDJan 2019

Biography

Chimera Investment Corporation operates as a real estate investment trust in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 21:17
End of Day Share Price2019/11/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.