NYSE:CIM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with imperfect balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

27.8%

CIM

14.3%

US Mortgage REITs

3.8%

US Market


1 Year Return

-43.4%

CIM

-36.8%

US Mortgage REITs

9.7%

US Market

Return vs Industry: CIM underperformed the US Mortgage REITs industry which returned -36.8% over the past year.

Return vs Market: CIM underperformed the US Market which returned 9.7% over the past year.


Shareholder returns

CIMIndustryMarket
7 Day27.8%14.3%3.8%
30 Day33.6%20.4%11.4%
90 Day-48.0%-36.8%6.8%
1 Year-36.3%-43.4%-29.4%-36.8%12.1%9.7%
3 Year-22.1%-44.1%-19.9%-42.8%36.2%27.2%
5 Year36.3%-26.7%5.2%-40.2%63.7%45.4%

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

Valuation

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

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIM ($10.62) is trading below our estimate of fair value ($19.27)

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


Price To Earnings Ratio

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

PE vs Market: CIM 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 CIM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CIM is good value based on its PB Ratio (0.6x) compared to the US Mortgage REITs industry average (0.7x).


Next Steps

Future Growth

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

153.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CIM's revenue is expected to decline over the next 3 years (-13.2% per year).

High Growth Revenue: CIM's revenue is forecast to decline over the next 3 years (-13.2% 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


Next Steps

Past Performance

How has Chimera Investment performed over the past 5 years?

-11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIM is currently unprofitable.

Growing Profit Margin: CIM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CIM is unprofitable, and losses have increased over the past 5 years at a rate of -11.6% per year.

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

Earnings vs Industry: CIM is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (-41.6%).


Return on Equity

High ROE: CIM has a negative Return on Equity (-2.32%), as it is currently unprofitable.


Next Steps

Financial Health

How is Chimera Investment's financial position?


Financial Position Analysis

Short Term Liabilities: CIM's short term assets ($14.1B) exceed its short term liabilities ($8.9B).

Long Term Liabilities: CIM's short term assets ($14.1B) exceed its long term liabilities ($7.1B).


Debt to Equity History and Analysis

Debt Level: CIM's debt to equity ratio (466.7%) is considered high.

Reducing Debt: CIM's debt to equity ratio has increased from 373.3% to 466.7% over the past 5 years.

Debt Coverage: CIM's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Next Steps

Dividend

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

18.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CIM's dividend (18.83%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: CIM's dividend (18.83%) is in the top 25% of dividend payers in the US market (4.22%)


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Matt Lambiase (53yo)

12.83yrs

Tenure

US$10,665,440

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 ($USD10.67M) is above average for companies of similar size in the US market ($USD4.76M).

Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Lambiase
President12.83yrsUS$10.67m0.14% $2.8m
Robert Colligan
Chief Financial Officer7.08yrsUS$4.19m0.079% $1.6m
Choudhary Yarlagadda
Chief Operating Officer4.83yrsUS$7.42m0.23% $4.6m
Mohit Marria
Chief Investment Officer6.5yrsUS$6.07m0.069% $1.4m
Phillip Kardis
Chief Legal Officer & Corporate Secretary4.75yrsUS$6.15m0.050% $1.0m
Emily Mohr
Investor Relations Officerno datano datano data

6.5yrs

Average Tenure

53yo

Average Age

Experienced Management: CIM's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Lambiase
President12.83yrsUS$10.67m0.14% $2.8m
John Reilly
Independent Director10.17yrsUS$220.00k0.045% $910.0k
Teresa A. Bazemore
Independent Director2.58yrsUS$220.00k0.0083% $169.6k
Mark Abrams
Independent Director12.58yrsUS$235.00k0.033% $670.6k
Debra Still
Independent Director2.25yrsUS$220.00k0.0069% $139.8k
Gerard Creagh
Independent Director10.17yrsUS$235.00k0.082% $1.7m
Paul Donlin
Independent Non-Executive Chairman12.58yrsUS$305.00k0.28% $5.7m
Dennis Mahoney
Independent Director10.17yrsUS$260.00k0.033% $674.3k
Brian Reilly
Independent Director0.92yrUS$91.67k0.012% $244.6k

10.2yrs

Average Tenure

61yo

Average Age

Experienced Board: CIM's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


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
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$2.041b
  • Shares outstanding: 192.22m
  • 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 Analysis2020/06/06 03:54
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
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.