NYSE:CHMI

Stock Analysis Report

Cherry Hill Mortgage Investment

Executive Summary

Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States.

Snowflake

Fundamentals

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

CHMI

1.9%

US Mortgage REITs

0.07%

US Market


1 Year Return

-24.3%

CHMI

-1.3%

US Mortgage REITs

8.9%

US Market

Return vs Industry: CHMI underperformed the US Mortgage REITs industry which returned -1.3% over the past year.

Return vs Market: CHMI underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

CHMIIndustryMarket
7 Day3.5%1.9%0.07%
30 Day-2.6%0.6%-0.3%
90 Day-12.9%-0.1%-1.6%
1 Year-14.4%-24.3%9.9%-1.3%11.3%8.9%
3 Year15.5%-18.3%38.4%-0.08%46.3%36.8%
5 Year29.4%-28.4%57.3%-9.5%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cherry Hill Mortgage Investment undervalued compared to its fair value and its price relative to the market?

43.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHMI ($13.31) is trading below our estimate of fair value ($23.54)

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


Price To Earnings Ratio

PE vs Industry: CHMI is unprofitable, so we can't compare its PE Ratio to the Mortgage REITs industry average.

PE vs Market: CHMI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CHMI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CHMI is good value based on its PB Ratio (0.8x) compared to the US Mortgage REITs industry average (1x).


Next Steps

Future Growth

How is Cherry Hill Mortgage Investment forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

109.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHMI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CHMI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CHMI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CHMI's revenue (54.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CHMI's revenue (54.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CHMI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cherry Hill Mortgage Investment performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CHMI is unprofitable, but has reduced losses over the past 5 years at a rate of 10.1% per year.

Accelerating Growth: Unable to compare CHMI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CHMI is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (5.2%).


Return on Equity

High ROE: CHMI has a negative Return on Equity (-14.68%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CHMI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CHMI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Cherry Hill Mortgage 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: CHMI has a low level of unsold assets or inventory.

Debt Coverage by Assets: CHMI's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Cherry Hill Mortgage Investment's current dividend yield, its reliability and sustainability?

12.02%

Current Dividend Yield


Dividend Yield vs Market

company12.0%marketbottom25%1.4%markettop25%3.7%industryaverage10.2%forecastin3Years12.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CHMI's dividend (12.02%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CHMI's dividend (12.02%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: CHMI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CHMI has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: CHMI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CHMI's dividends in 3 years are forecast to be covered by earnings (85% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jay Lown (55yo)

2.6yrs

Tenure

US$154,445

Compensation

Mr. Jeffrey B. Lown II, also known as Jay, has been the President of Cherry Hill Mortgage Investment Corporation since October 2012 and has been its Chief Executive Officer since March 23, 2017 and served  ...


Management Age and Tenure

2.6yrs

Average Tenure

49yo

Average Age

Experienced Management: CHMI's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

67yo

Average Age

Experienced Board: CHMI's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: CHMI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$73509 Sep 19
Jeffrey Lown
EntityIndividual
Role
Chief Executive Officer
President
Shares47.63
Max PriceUS$15.43
BuyUS$16,33506 Jun 19
Julian Evans
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer
Shares1,000
Max PriceUS$16.35
BuyUS$12,28505 Jun 19
Jeffrey Lown
EntityIndividual
Role
Chief Executive Officer
President
Shares750
Max PriceUS$16.38
BuyUS$12,22903 Jun 19
Jeffrey Lown
EntityIndividual
Role
Chief Executive Officer
President
Shares750
Max PriceUS$16.30
BuyUS$34,84002 Jan 19
Jeffrey Lown
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceUS$17.42

Ownership Breakdown


Management Team

  • Julian Evans (49yo)

    Chief Investment Officer

    • Tenure: 3.6yrs
    • Compensation: US$95.39k
  • Jay Lown (55yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$154.45k
  • Mike Hutchby (41yo)

    CFO, Treasurer

    • Tenure: 0.3yrs

Board Members

  • Joseph Murin (69yo)

    Lead Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$112.50k
  • Robert Mercer (71yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$105.00k
  • Regina Lowrie (65yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$102.50k
  • Jay Lown (55yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$154.45k

Company Information

Cherry Hill Mortgage Investment Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cherry Hill Mortgage Investment Corporation
  • Ticker: CHMI
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Implied Market Cap: US$226.777m
  • Market Cap: US$224.894m
  • Shares outstanding: 17.17m
  • Website: https://www.chmireit.com

Number of Employees


Location

  • Cherry Hill Mortgage Investment Corporation
  • 1451 Route 34
  • Suite 303
  • Farmingdale
  • New Jersey
  • 7727
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHMINYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2013
CHMI.PRANYSE (New York Stock Exchange)8.20% CUM PFD AUSUSDAug 2017
CHMI.PRBNYSE (New York Stock Exchange)8.250 CUM PFD BUSUSDFeb 2019

Biography

Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. The company operates through Inve ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:30
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.