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CIM

Chimera Investment NYSE:CIM Stock Report

Last Price

US$8.82

Market Cap

US$2.4b

7D

-0.6%

1Y

-41.6%

Updated

30 Jun, 2022

Data

Company Financials +
CIM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends3/6

CIM Stock Overview

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

Chimera Investment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chimera Investment
Historical stock prices
Current Share PriceUS$8.82
52 Week HighUS$16.85
52 Week LowUS$7.72
Beta1.04
1 Month Change-10.00%
3 Month Change-27.17%
1 Year Change-41.59%
3 Year Change-53.31%
5 Year Change-53.11%
Change since IPO-88.16%

Recent News & Updates

Jun 15

Chimera Investment Preferred Stock Appears Far Oversold

Chimera Investment Corp. is a REIT that invests primarily in residential mortgage assets. The company has several classes of preferred stock which appear oversold and now yield about 10% with floating rate features. Credit quality is solid, with residential mortgage assets & majority fixed rate borrowings on the liability side, with sufficient equity cushion. Indiscriminate panic selling has created a window of opportunity to lock in high yields for the long term.

Jun 07

2 Reasons To Buy Chimera Investment: 13.4% Yield And 30% Discount To BV

Chimera stock trades at an attractive valuation. The trust’s dividend is well-covered by distributable earnings. Risks are adequately priced into Chimera’s stock.

Shareholder Returns

CIMUS Mortgage REITsUS Market
7D-0.6%-1.7%-0.6%
1Y-41.6%-29.5%-21.7%

Return vs Industry: CIM underperformed the US Mortgage REITs industry which returned -29.1% over the past year.

Return vs Market: CIM underperformed the US Market which returned -20.8% over the past year.

Price Volatility

Is CIM's price volatile compared to industry and market?
CIM volatility
CIM Average Weekly Movement6.0%
Mortgage REITs Industry Average Movement5.7%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: CIM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CIM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200738Mohit Marriahttps://www.chimerareit.com

Chimera Investment Corporation operates as a real estate investment trust (REIT) 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 residential, commercial mortgage loans, and other real estate related securities. It has elected to be taxed as a REIT.

Chimera Investment Fundamentals Summary

How do Chimera Investment's earnings and revenue compare to its market cap?
CIM fundamental statistics
Market CapUS$2.41b
Earnings (TTM)US$176.00m
Revenue (TTM)US$417.86m

13.7x

P/E Ratio

5.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CIM income statement (TTM)
RevenueUS$417.86m
Cost of RevenueUS$36.57m
Gross ProfitUS$381.29m
Other ExpensesUS$205.30m
EarningsUS$176.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.64
Gross Margin91.25%
Net Profit Margin42.12%
Debt/Equity Ratio345.2%

How did CIM perform over the long term?

See historical performance and comparison

Dividends

15.0%

Current Dividend Yield

177%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CIM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CIM?

Other financial metrics that can be useful for relative valuation.

CIM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does CIM's PE Ratio compare to its peers?

CIM PE Ratio vs Peers
The above table shows the PE ratio for CIM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.1x
ABR Arbor Realty Trust
6.7x4.7%US$2.3b
CMTG Claros Mortgage Trust
16.5x27.0%US$2.3b
HASI Hannon Armstrong Sustainable Infrastructure Capital
27.6x16.8%US$3.3b
TWO Two Harbors Investment
9.8x8.2%US$1.7b
CIM Chimera Investment
13.7x52.0%US$2.4b

Price-To-Earnings vs Peers: CIM is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (15.1x).


Price to Earnings Ratio vs Industry

How does CIM's PE Ratio compare vs other companies in the US Mortgage REITs Industry?

Price-To-Earnings vs Industry: CIM is expensive based on its Price-To-Earnings Ratio (13.7x) compared to the US Mortgage REITs industry average (10.7x)


Price to Earnings Ratio vs Fair Ratio

What is CIM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CIM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.7x
Fair PE Ratio26x

Price-To-Earnings vs Fair Ratio: CIM is good value based on its Price-To-Earnings Ratio (13.7x) compared to the estimated Fair Price-To-Earnings Ratio (26x).


Share Price vs Fair Value

What is the Fair Price of CIM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CIM ($8.82) is trading above our estimate of fair value ($6.83)

Significantly Below Fair Value: CIM is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: CIM is good value based on its PEG Ratio (0.3x)


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Future Growth

How is Chimera Investment forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


52.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIM's forecast earnings growth (52% per year) is above the savings rate (1.9%).

Earnings vs Market: CIM's earnings (52% per year) are forecast to grow faster than the US market (13.7% per year).

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

Revenue vs Market: CIM's revenue (7.8% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: CIM's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

How has Chimera Investment performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-12.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CIM has high quality earnings.

Growing Profit Margin: CIM's current net profit margins (42.1%) are lower than last year (51.9%).


Past Earnings Growth Analysis

Earnings Trend: CIM's earnings have declined by 12.7% per year over the past 5 years.

Accelerating Growth: CIM'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 had negative earnings growth (-67.6%) over the past year, making it difficult to compare to the Mortgage REITs industry average (5.4%).


Return on Equity

High ROE: CIM's Return on Equity (7.5%) is considered low.


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Financial Health

How is Chimera Investment's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CIM's short term assets ($13.1B) exceed its short term liabilities ($3.6B).

Long Term Liabilities: CIM's short term assets ($13.1B) exceed its long term liabilities ($8.3B).


Debt to Equity History and Analysis

Debt Level: CIM's net debt to equity ratio (340.2%) is considered high.

Reducing Debt: CIM's debt to equity ratio has reduced from 463% to 345.2% over the past 5 years.

Debt Coverage: CIM's debt is not well covered by operating cash flow (4.6%).

Interest Coverage: Insufficient data to determine if CIM's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


14.97%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CIM's dividend (14.97%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: CIM's dividend (14.97%) is in the top 25% of dividend payers in the US market (4.3%)


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (176.5%), CIM's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (67.8%), CIM's dividend payments are covered by cash flows.


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Management

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

6.8yrs

Average management tenure


CEO

Mohit Marria (43 yo)

8.5yrs

Tenure

US$11,976,596

Compensation

Mr. Mohit Marria is the Chief Executive Officer at Chimera Investment Corporation since January 1, 2021 and has been its Chief Investment Officer since December 2013 and Director since November 16, 2020 an...


CEO Compensation Analysis

Compensation vs Market: Mohit's total compensation ($USD11.98M) is above average for companies of similar size in the US market ($USD6.89M).

Compensation vs Earnings: Mohit's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: CIM's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: CIM's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 18.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Chimera Investment Corporation
  • Ticker: CIM
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Implied Market Cap: US$2.414b
  • Shares outstanding: 273.75m
  • Website: https://www.chimerareit.com

Number of Employees


Location

  • Chimera Investment Corporation
  • 630 Fifth Avenue
  • Suite 2400
  • New York
  • New York
  • 10111
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.