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CIM

Chimera Investment NYSE:CIM Stock Report

Last Price

US$5.22

Market Cap

US$1.2b

7D

-20.4%

1Y

-65.2%

Updated

01 Oct, 2022

Data

Company Financials +
CIM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
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 Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chimera Investment
Historical stock prices
Current Share PriceUS$5.22
52 Week HighUS$16.85
52 Week LowUS$4.94
Beta1.14
1 Month Change-36.65%
3 Month Change-42.26%
1 Year Change-65.25%
3 Year Change-73.62%
5 Year Change-72.38%
Change since IPO-92.99%

Recent News & Updates

Sep 21

Chimera Investment dips dividend -30.3% to $0.23/share

Chimera Investment (NYSE:CIM) declares $0.23/share quarterly dividend, -30.3% decrease from prior dividend of $0.33. Forward yield 12.17% Payable Oct. 31; for shareholders of record Sept. 30; ex-div Sept. 29. See CIM Dividend Scorecard, Yield Chart, & Dividend Growth.

Sep 15

Chimera Investment: A Dividend Cut May Be Coming

Summary A strong labor market poses a challenge for the mREIT sector. September may see another super-sized rate hike. Chimera Investment’s pay-out metrics have deteriorated. Chimera Investment Corporation (CIM) now has a dividend yield of 15.9%, which could be a red flag given that the mortgage real estate investment trust could not cover its dividend with distributable earnings in the most recent quarter. A solid labor market and, as a result, another large interest rate hike might further stress the company's valuation in the coming weeks. Despite the fact that Chimera Investment is already trading at a significant discount to book value, it appears that the market, and not without cause, anticipates a change in dividend policy. The stock of Chimera Investment is a hold. Chimera Investment Portfolio Chimera Investment's portfolio was valued at $13.7 billion at the end of the second quarter, with the majority of its investments consisting of Residential Mortgage Loans. Chimera Investment's portfolio as of June 30, 2022 consisted of Residential Mortgage Loans (87% of the portfolio), Non-Agency Mortgage Backed Securities (10% of the portfolio), and Agency Commercial and Residential Mortgage Backed Securities (3% of the portfolio). Portfolio Overview (Chimera Investment Corp) Robust Net Interest Spread, But Interest Costs Are Rising Chimera Investment, as a mortgage real estate investment trust with a big investment portfolio, generates profits exactly like any other mREIT. It purchases credit-financed mortgage assets with high yields and profits from the difference between the yield on those assets and its borrowing costs. Typically, this business works only if mortgage trusts take on a significant amount of debt. Chimera Investment generated a healthy net interest spread from its operations of buying, holding, and selling mortgage assets in the second quarter. Chimera Investment's total portfolio gross asset yield was 5.5%, up 0.1 percentage point from the previous quarter. Having said that, the mortgage trust's financing expenses climbed from 2.3% in 1Q-22 to 2.7% in 2Q-22 as a response to the central bank's recent interest rate hikes. As a result, Chimera Investment's net interest spread declined 0.3 percentage points QoQ to 2.8% in 2Q-22. Net Interest Spread (Chimera Investment Corp) However, threats to Chimera Investment's interest rate spread are rising as the central bank continues to raise interest rates. Indeed, given the moderate labor market strength in August and sustained inflation, the central bank is expected to approve the third super-sized interest rate hike at the end of September. The central bank has already raised interest rates by 225 basis points this year, to a range of 2.25% to 2.50%, and the Fed is expected to raise interest rates by 75 basis points later this month, lowering Chimera Investment's net interest spread in the future. Deteriorating Dividend Coverage Mortgage real estate investment trusts' portfolio and book values have been smashed in 2022 as credit spreads have widened, and interest rate volatility has increased at the short end of the yield curve. As a result, Chimera Investment's earnings available for distribution have consolidated over the last year, falling to $0.31 per share in 2Q-22. Chimera Investment's earnings available for distribution, which are important in establishing the trust's dividend safety, declined 43% YoY. Earnings Available For Distribution (Chimera Investment Corp) Unfortunately for Chimera Investment, the trust's distributable earnings fell below the $0.33 per share quarterly payment in the second quarter, implying that the business paid out more than it earned. The pay-out ratio fell to 106.5% in the most recent quarter, implying that the trust will likely reduce its dividend payout in the future. Pay-Out Ratio (Author Created Table Using Trust Information) P/B-Multiple As credit spreads widened and interest rate volatility grew, mortgage real estate investment trusts began to trade at (greater) discounts to book value again, owing to investors' expectations of severe drops in book value. Chimera Investment's stock is currently trading at a 37% discount to book value, implying that the market expects large book value losses and a dividend decrease. CIM Price to Book Value data by YCharts Why Chimera Investment Could See A Higher Valuation A reduction in interest rate volatility, particularly at the short end of the yield curve, would contribute to less uncertainty in the mREIT market.

Aug 03

Chimera Investment Q2 2022 Earnings Preview

Chimera Investment (NYSE:CIM) is scheduled to announce Q2 earnings results on Thursday, August 4th, after market close. The consensus EPS Estimate is $0.35 (-35.2% Y/Y) and the consensus Revenue Estimate is $131.19M (-23.7% Y/Y). Over the last 2 years, CIM has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time. Over the last 3 months, EPS estimates have seen 0 upward revisions and 4 downward. Revenue estimates have seen 0 upward revisions and 4 downward.

Shareholder Returns

CIMUS Mortgage REITsUS Market
7D-20.4%-15.6%-2.5%
1Y-65.2%-42.4%-23.2%

Return vs Industry: CIM underperformed the US Mortgage REITs industry which returned -42.4% over the past year.

Return vs Market: CIM underperformed the US Market which returned -23.2% over the past year.

Price Volatility

Is CIM's price volatile compared to industry and market?
CIM volatility
CIM Average Weekly Movement7.2%
Mortgage REITs Industry Average Movement5.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: CIM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CIM's weekly volatility (7%) 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 Corporation Fundamentals Summary

How do Chimera Investment's earnings and revenue compare to its market cap?
CIM fundamental statistics
Market CapUS$1.21b
Earnings (TTM)-US$148.65m
Revenue (TTM)US$75.13m

16.1x

P/S Ratio

-8.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CIM income statement (TTM)
RevenueUS$75.13m
Cost of RevenueUS$36.80m
Gross ProfitUS$38.33m
Other ExpensesUS$186.98m
Earnings-US$148.65m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.64
Gross Margin51.02%
Net Profit Margin-197.87%
Debt/Equity Ratio367.1%

How did CIM perform over the long term?

See historical performance and comparison

Dividends

25.3%

Current Dividend Yield

-210%

Payout Ratio