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Chimera Investment Corp. (CIM)
NYSE:CIM
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Chimera Investment
(NYSE:CIM)64Neutral
Chimera Investment (CIM) vs. S&P 500 (SPY)
Market Cap
$1.12B
Dividend Yield10.28%
Average Volume (3M)609.36K
Price to Earnings (P/E)12.6
Beta (1Y)1.35
Revenue Growth7.13%
EPS Growth64.82%
CountryUS
Employees77
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)1.08
Shares Outstanding80,922,570
10 Day Avg. Volume603,429
30 Day Avg. Volume609,359
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)N/A
Price to Sales (P/S)4.23
Price to Cash Flow (P/CF)7.40
P/FCF Ratio0.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.50Price Target Upside18.71% Upside
Rating ConsensusHold
Number of Analyst Covering1
Chimera Investment Business Overview & Revenue Model
Company DescriptionChimera Investment Corp. operates as a real estate investment trust. It engages in investing directly or indirectly through its subsidiaries, on a leveraged basis, in a portfolio of mortgage assets. It includes residential mortgage loans, residential mortgage-backed securities, commercial mortgage loans, real estate-related securities, and various other asset classes. The company was founded on June 1, 2007 and is headquartered in New York, NY.
How the Company Makes MoneyChimera Investment Corporation makes money primarily through the interest income generated from its portfolio of mortgage-backed securities. The company invests in various types of mortgage assets, including agency and non-agency RMBS and CMBS, which provide returns through the collection of interest payments. Additionally, Chimera may engage in hedging activities to manage interest rate risk and enhance yield. The company also benefits from capital appreciation of its investments and may leverage its portfolio to amplify returns. Strategic partnerships and relationships with financial institutions can also play a role in optimizing asset acquisition and management, contributing to overall earnings.
Chimera Investment Financial Statement Overview
Summary
Chimera Investment shows strong gross profit margins and improvement in net income and revenue. However, historical volatility and high leverage pose risks. Cash flows are stable but reliant on financing activities.Income Statement
Chimera Investment shows strong gross profit margins, with significant improvement in net income and revenue in the latest year. However, past years have shown volatile revenue and profit trends, affecting stability.65
Positive
Balance Sheet
The company has a high debt-to-equity ratio, typical for REITs, which indicates high leverage. While equity has been relatively stable, the potential risk from leverage remains substantial.55
Neutral
Cash Flow
The cash flow statement indicates consistent free cash flow with recent growth. The operating cash flow has been stable, but the reliance on financing cash flows is a potential concern.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 734.19M | 226.02M | 432.79M | 1.06B | 228.84M | Gross Profit |
| 706.78M | 193.40M | 380.64M | 990.62M | 176.30M | EBIT |
| 648.61M | 631.87M | -253.28M | 674.52M | 89.01M | EBITDA |
| 648.93M | 0.00 | -191.80M | 674.52M | 89.01M | Net Income Common Stockholders |
| 176.06M | 126.10M | -513.07M | 670.11M | 88.85M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 84.00M | 221.68M | 11.62B | 385.74M | 269.09M | Total Assets |
| 13.12B | 12.93B | 13.40B | 15.41B | 17.52B | Total Debt |
| 10.01B | 10.11B | 10.61B | 11.08B | 13.51B | Net Debt |
| 9.93B | 9.89B | 10.35B | 10.69B | 13.24B | Total Liabilities |
| 10.59B | 10.37B | 10.74B | 11.67B | 13.74B | Stockholders Equity |
| 2.53B | 2.56B | 2.67B | 3.74B | 3.78B |
| Cash Flow | Free Cash Flow | |||
| 205.67M | 213.27M | 325.72M | 519.18M | 257.90M | Operating Cash Flow |
| 205.67M | 213.27M | 325.72M | 519.18M | 257.90M | Investing Cash Flow |
| 178.22M | 551.75M | 509.84M | 2.55B | 8.33B | Financing Cash Flow |
| -521.58M | -807.94M | -956.70M | -2.95B | -8.43B |
Chimera Investment Technical Analysis
Negative
13.90
Price Trends
14.22
Negative
14.45
Negative
13.97
Negative
Market Momentum
-0.13
Positive
43.52
Neutral
46.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIM, the sentiment is Negative. The current price of 13.9 is below the 20-day moving average (MA) of 14.25, below the 50-day MA of 14.22, and below the 200-day MA of 13.97, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 46.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CIM.
Chimera Investment Risk Analysis
Chimera Investment disclosed 63 risk factors in its most recent earnings report. Chimera Investment reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chimera Investment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $9.36B | 10.99 | 9.58% | 14.09% | 384.69% | 963700.00% | |
68 Neutral | $12.38B | 13.21 | 8.40% | 12.14% | 13.33% | ― | |
65 Neutral | $1.25B | 9.30 | 11.08% | 11.54% | 139.84% | ― | |
64 Neutral | $1.12B | 12.57 | 6.92% | 10.28% | 7.13% | 64.82% | |
62 Neutral | $1.44B | 5.82 | 13.74% | 13.04% | 28.33% | ― | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
58 Neutral | $527.79M | 13.23 | 8.19% | 18.71% | 137.36% | ― |
* Real Estate Sector Average
Performance Comparison
CIM
Chimera Investment
13.90
1.99
16.71%
AGNC
AGNC Investment
10.29
2.02
24.43%
NLY
Annaly Capital
21.69
4.71
27.74%
DX
Dynex Capital
14.07
3.21
29.56%
IVR
Invesco Mortgage
8.61
1.10
14.65%
TWO
Two Harbors
13.93
2.79
25.04%
Chimera Investment Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -7.89% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable achievements like the Palisades acquisition and strong demand for new homes, but also faced challenges such as a GAAP net loss in Q4 and housing market difficulties. The sentiment is slightly tilted towards the positive due to strategic acquisitions and plans for diversified growth.Highlights
Home Price Appreciation
US home prices rose 4.3% between Q3 2023 and Q3 2024, positively impacting homeowners' equity.
Strong Demand for New Homes
Completed new homes estimated to sell in 2.8 months, indicating strong demand for newly built homes.
Increase in Credit Spreads and Investor Demand
Credit spreads tightened and non-agency RMBS gross issuance nearly doubled from $71 billion in 2023 to $137 billion in 2024.
Palisades Acquisition
Acquisition of Palisades Group, enhancing Chimera's ability to provide third-party investment management and advisory services.
Quarterly Dividend Increase
Chimera increased its quarterly dividend by 12% in 2024.
Positive Full Year Economic Return
Economic return was a positive 4.4% for the full year 2024.
Successful Securitization
Chimera closed its first securitization of 2025, financing $287 million of investor loans with strong demand.
Lowlights
GAAP Net Loss in Q4 2024
GAAP net loss of $168.3 million or $2.07 per share in Q4 2024.
Negative Economic Return on GAAP Book Value in Q4
Economic return on GAAP book value was negative 10.1% for Q4 2024.
Housing Market Challenges
Sales of previously owned homes declined for the third consecutive year, reaching the lowest level since 1995.
Interest Rate and Yield Curve Impact
10-year treasury rates rose despite Fed rate cuts, and agency MBS spreads widened, negatively impacting GAAP book value.
Increased Transaction Expenses
Transaction expenses increased by $4.7 million in Q4 2024, primarily due to the Palisades acquisition.
Company Guidance
During the fourth quarter and full year 2024 earnings call for Chimera Investment Corporation, several key metrics and strategic plans were discussed. The company reported a GAAP net loss of $168.3 million for the fourth quarter, translating to $2.07 per share, but achieved a GAAP net income of $90.3 million for the full year, equivalent to $1.10 per share. The GAAP book value at the end of the fourth quarter was $19.72 per share. Despite a negative economic return on GAAP book value of 10.1% for the quarter, the full-year economic return was positive at 4.4%, incorporating $1.42 in dividends for 2024. The company executed strategic portfolio adjustments, including deploying $209 million from equity and debt raises into floating rate agency CMOs, residential transition loans, and non-QM loans. They also closed the acquisition of the Palisades Group, expanding their capabilities in residential real estate credit and aiming to increase fee-based income. Looking forward to 2025, Chimera plans to diversify its portfolio, enhance liquidity, and potentially increase agency RMBS holdings, while also exploring opportunities in mortgage servicing rights to hedge against loan portfolio risks. The company's total leverage stood at 4 to 1, with recourse leverage at 1.2 to 1, and they ended the year with $610 million in cash and unencumbered assets.Chimera Investment Corporate Events
Business Operations and Strategy
Chimera Investment Shares Insights at RBC Conference
Neutral
Mar 3, 2025
On March 3, 2025, Chimera Investment Corporation participated in the RBC Capital Markets Global Financial Institutions Conference, where it made available an investor presentation. The presentation, which was posted on the company’s website, provides insights into Chimera’s operations and strategic positioning, although it is not considered ‘filed’ for regulatory purposes.
Dividends
Chimera Investment Declares Q1 2025 Preferred Dividends
Positive
Feb 11, 2025
On February 11, 2025, Chimera Investment Corporation announced the declaration of its first quarter dividends for several series of its preferred stocks, with payments scheduled for March 31, 2025. The dividends declared include $0.50 per share for Series A, $0.6488 per share for Series B, $0.484375 per share for Series C, and $0.6231 per share for Series D. This announcement highlights Chimera’s ongoing commitment to providing returns to its preferred shareholders, signaling stability and potential attractiveness to investors seeking consistent income in the real estate investment sector.
Private Placements and FinancingBusiness Operations and Strategy
Chimera Investment Announces $287.7 Million Securitization
Positive
Feb 3, 2025
On January 31, 2025, Chimera Investment Corporation announced the sponsorship of CIM 2025-I1, a $287.7 million securitization of residential mortgage investor loans, with securities sold in a private placement to institutional investors. The securitization, rated by Fitch and Morningstar DBRS, reflects Chimera’s strategic move to enhance its real estate investment trust operations and strengthen its industry positioning by retaining subordinate interests and managing the assets through its subsidiary, Palisades Advisory Services.
Dividends
Chimera Investment Declares Q4 2024 Dividend Payout
Positive
Dec 19, 2024
Chimera Investment Corporation announced a cash dividend of $0.37 per common share for the fourth quarter of 2024, payable to shareholders on January 31, 2025. This move highlights the company’s commitment to returning value to shareholders and may impact its market positioning positively by reinforcing investor confidence.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.