NYSE:CIM.PRA

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value unattractive dividend payer.


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: CIM.PRA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

CIM.PRA

-4.8%

US Mortgage REITs

-7.4%

US Market


1 Year Return

3.6%

CIM.PRA

2.7%

US Mortgage REITs

10.5%

US Market

Return vs Industry: CIM.PRA matched the US Mortgage REITs industry which returned 2.7% over the past year.

Return vs Market: CIM.PRA underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

CIM.PRAIndustryMarket
7 Day-1.6%-4.8%-7.4%
30 Day0.2%-0.2%-3.6%
90 Day0.5%3.6%-0.6%
1 Year11.8%3.6%13.7%2.7%12.8%10.5%
3 Year31.7%6.4%37.4%-0.5%37.4%28.6%
5 Yearn/a65.0%-5.1%61.3%43.6%

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: CIM.PRA ($26.62) is trading below our estimate of fair value ($62.31)

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


Price To Earnings Ratio

PE vs Industry: CIM.PRA is good value based on its PE Ratio (11.9x) compared to the Mortgage REITs industry average (12.9x).

PE vs Market: CIM.PRA is good value based on its PE Ratio (11.9x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: CIM.PRA is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: CIM.PRA is overvalued based on its PB Ratio (1x) compared to the US 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 4 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIM.PRA's forecast earnings growth (11.5% per year) is above the savings rate (1.7%).

Earnings vs Market: CIM.PRA's earnings (11.5% per year) are forecast to grow slower than the US market (13.2% per year).

High Growth Earnings: CIM.PRA's earnings are forecast to grow, but not significantly.

Revenue vs Market: CIM.PRA's revenue is expected to decline over the next 3 years (-19.1% per year).

High Growth Revenue: CIM.PRA's revenue is forecast to decline over the next 3 years (-19.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIM.PRA's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has Chimera Investment performed over the past 5 years?

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIM.PRA has a large one-off loss of $350.4M impacting its December 31 2019 financial results.

Growing Profit Margin: CIM.PRA's current net profit margins (38.4%) are lower than last year (74.7%).


Past Earnings Growth Analysis

Earnings Trend: CIM.PRA's earnings have declined by -6.2% per year over the past 5 years.

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

Earnings vs Industry: CIM.PRA had negative earnings growth (-7.5%) over the past year, making it difficult to compare to the Mortgage REITs industry average (11.3%).


Return on Equity

High ROE: CIM.PRA's Return on Equity (10.5%) 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: CIM.PRA has a low level of unsold assets or inventory.

Debt Coverage by Assets: CIM.PRA's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

9.25%

Current Dividend Yield


Dividend Yield vs Market

company9.2%marketbottom25%1.5%markettop25%3.9%industryaverage9.7%forecastin3Years9.3%

Current dividend yield vs market & industry

Notable Dividend: CIM.PRA's dividend (9.25%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: CIM.PRA's dividend (9.25%) is in the top 25% of dividend payers in the US market (3.9%)


Stability and Growth of Payments

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

Growing Dividend: CIM.PRA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (109.8%), CIM.PRA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CIM.PRA's dividends in 3 years are not forecast to be well covered by earnings (90.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Matt Lambiase (53yo)

12.5yrs

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 ($USD6.69M) is above average for companies of similar size in the US market ($USD4.93M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Lambiase
President12.5yrsUS$6.69m0.49% $20.0m
Robert Colligan
Chief Financial Officer6.8yrsUS$2.64m0.12% $4.8m
Choudhary Yarlagadda
Chief Operating Officer4.5yrsUS$4.77m0.35% $14.0m
Mohit Marria
Chief Investment Officer6.2yrsUS$2.89m0.21% $8.7m
Phillip Kardis
Chief Legal Officer & Corporate Secretary4.4yrsUS$3.02m0.098% $4.0m
Emily Mohr
Investor Relations Officer0yrsno datano data

6.2yrs

Average Tenure

53yo

Average Age

Experienced Management: CIM.PRA's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Lambiase
President12.5yrsUS$6.69m0.49% $20.0m
John Reilly
Independent Director9.8yrsUS$211.67k0.024% $976.4k
Teresa A. Bazemore
Independent Director2.3yrsUS$211.67k0.00094% $38.1k
Mark Abrams
Independent Director12.3yrsUS$226.67k0.028% $1.1m
Debra Still
Independent Director1.9yrsUS$176.11k0.0010% $41.7k
Gerard Creagh
Independent Director9.8yrsUS$220.42k0.053% $2.1m
Paul Donlin
Non-Executive Chairman12.3yrsUS$288.33k0.16% $6.5m
Dennis Mahoney
Independent Director9.8yrsUS$245.42k0.033% $1.3m
Brian Reilly
Independent Director0.6yrsno data0.0043% $172.9k

9.8yrs

Average Tenure

61yo

Average Age

Experienced Board: CIM.PRA's board of directors are considered experienced (9.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

Company Information

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


Key Information

  • Name: Chimera Investment Corporation
  • Ticker: CIM.PRA
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$4.050b
  • Shares outstanding: 187.23m
  • 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 mortgage loans, agency and non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, commercial mortgage loans, and other real estate related securities. It has elected to be taxed as a real estate investment trust. As a result, the company would not be subject to U.S. federal income tax, if it distributes at least 90% of its REIT taxable income to its shareholders. Chimera Investment Corporation was founded in 2007 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 01:41
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.