Adamas Trust (ADAM) AI Stock Analysis

• Market Cap: $708.01M
• Dividend Yield: 11.99%
• Average Volume (3M): 684.64K
• Price to Earnings (P/E): 41.6
• Beta (1Y): 0.75
• Revenue Growth: 36.78%
• EPS Growth: N/A
• Country: US
• Employees: 70
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.36
• Shares Outstanding: 90,307,780
• 10 Day Avg. Volume: 598,885
• 30 Day Avg. Volume: 684,640
• PEG Ratio: -0.59
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 119.61
• Enterprise Value/Market Cap: 16.56
• Enterprise Value/Revenue: 18.10
• Enterprise Value/Gross Profit: 35.87
• Enterprise Value/Ebitda: 132.03
• 1Y Price Target: $8.42
• Price Target Upside: 7.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $8.00 ▲(1.78% Upside)

Overall score reflects high balance-sheet leverage and modest underlying profitability (largest detractor), partially offset by constructive price trend, a high dividend yield, and a generally positive earnings update featuring continued EAD/dividend growth and modest book value gains.

Positive Factors

Agency RMBS portfolio shift

Shifting capital to agency RMBS meaningfully increases portfolio liquidity and lowers credit risk relative to private credit. This structural allocation supports steadier interest income and reduces earnings volatility from credit losses, reinforcing medium-term earnings resilience.

Consecutive EAD and dividend increases

Six straight quarterly EAD increases and a dividend raise indicate consistent distributable earnings and a shareholder-return policy that appears sustainable. This track record supports capital-raising credibility and signals management discipline in generating cash for payouts over the medium term.

Strong free cash flow conversion

High FCF conversion shows the company effectively turns accounting profits into cash, supporting dividends, asset purchases, and debt servicing. Even with modest operating cash to net income, near-par FCF conversion materially improves financial flexibility and lowers refinancing stress over the coming quarters.

Negative Factors

High balance-sheet leverage

Very high leverage materially increases sensitivity to rate and funding shocks, raises interest expense risk, and constrains strategic flexibility. With limited equity buffer, adverse market moves or asset markdowns could force deleveraging actions that undermine long-term dividend and growth plans.

Low returns and modest margins

Modest margins and stagnant revenue growth limit the firm's ability to generate excess returns on equity. Low operating profitability reduces capacity to absorb higher funding costs or support higher leverage, making long-term ROE improvement and reinvestment more challenging.

Rising expenses, integration losses, and portfolio weakness

Higher G&A, acquisition-related integration losses and realized losses are structural drags on distributable earnings while a shrinking BPL bridge portfolio signals competitive pressure. Persistent expense increases and asset-quality hits can reduce long-term cash available for dividends and growth.

Adamas Trust Business Overview & Revenue Model

Company Description

Adamas Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. The company's targeted residential loans, including business purpose loans; agency RMBS; non-agency residential mortgage-backed securities (RMBS); structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties; and other mortgage-, residential housing- and credit-related assets and strategic investments; and commercial mortgage-backed securities (CMBS). It also owns and manages single-family rental properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Adamas Trust, Inc. was formerly known as New York Mortgage Trust, Inc. and changed its name to Adamas Trust, Inc. in September 2025. Adamas Trust, Inc. was incorporated in 2003 and is headquartered in New York, New York.

How the Company Makes Money

Adamas Trust generates revenue through various streams, including management fees from assets under management (AUM), performance fees based on investment returns, and advisory fees for financial consulting services. The company typically charges a percentage of AUM as a management fee, which provides a steady income as it grows its client base and manages more assets. Additionally, performance fees incentivize the firm to achieve superior returns, allowing it to capture a portion of the profits generated for clients. Significant partnerships with institutional investors and financial institutions enhance Adamas Trust's credibility and reach, further contributing to its earnings through increased asset inflows and collaborative investment opportunities.

Adamas Trust Financial Statement Overview

Summary

New York Mortgage's financial health presents a mixed picture. While the company has a strong balance sheet with no debt and good cash reserves, its income statement reveals challenges with declining revenues and ongoing losses. The cash flow statement shows reduced operating cash flow, though it remains positive. The company needs to address its profitability issues to improve investor confidence and long-term growth prospects.

Income Statement

New York Mortgage has experienced significant volatility in revenue and profit margins over the years. Recent data shows a decline in Total Revenue from $210 million in 2023 to $83.855 million in 2024, a significant drop. Gross Profit Margin remains stable at 100% for 2024, but Net Profit Margin is negative due to a net loss, indicating profitability challenges. EBIT and EBITDA margins are strong, but net losses raise concerns about overall profitability and growth trajectory.

Balance Sheet

The company's balance sheet shows a strong equity base, with Stockholders' Equity at $1.398 billion in 2024. With Total Debt at $0, the Debt-to-Equity Ratio indicates no leverage risk, which is positive. However, the Return on Equity is negative due to net losses, which impacts shareholder returns. The Equity Ratio is robust at approximately 15.2%, reflecting stable financial structure despite profitability challenges.

Cash Flow

Operating Cash Flow decreased from $29.953 million in 2023 to $14.071 million in 2024, indicating reduced cash generation from operations. Free Cash Flow remains positive but has also decreased. The Operating Cash Flow to Net Income and Free Cash Flow to Net Income ratios are impacted by negative net income but show the company's ability to generate operational cash despite losses. Cash reserves remain strong, helping to mitigate risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	647.60M	558.92M	500.80M	138.11M	380.19M	147.98M
Gross Profit	326.86M	238.28M	308.67M	8.69M	300.91M	135.64M
EBITDA	88.79M	-32.88M	-25.60M	-187.15M	242.32M	-66.75M
Net Income	64.13M	-62.03M	-48.66M	-298.61M	193.20M	-288.51M
Balance Sheet
Total Assets	12.40B	9.22B	7.40B	6.24B	5.66B	4.66B
Cash, Cash Equivalents and Short-Term Investments	185.28M	4.00B	2.20B	344.28M	490.45M	304.49M
Total Debt	10.82B	3.56B	2.81B	2.65B	2.52B	2.22B
Total Liabilities	11.00B	7.81B	5.77B	4.38B	3.23B	2.35B
Stockholders Equity	1.39B	1.39B	1.58B	1.77B	2.34B	2.30B
Cash Flow
Free Cash Flow	97.62M	4.60M	29.95M	91.78M	138.91M	110.88M
Operating Cash Flow	101.08M	14.07M	29.95M	91.78M	138.91M	111.08M
Investing Cash Flow	-3.33B	-2.24B	-1.22B	-508.77M	-132.95M	2.12B
Financing Cash Flow	3.20B	2.23B	1.14B	460.07M	27.41M	-2.05B

Adamas Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADAM, the sentiment is Positive. The current price of 7.86 is above the 20-day moving average (MA) of 7.42, above the 50-day MA of 7.15, and above the 200-day MA of 6.47, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 80.35 is Negative, neither overbought nor oversold. The STOCH value of 92.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADAM.

Adamas Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
TRTX	64 Neutral	$709.83M	13.69	5.87%	10.48%	-10.86%	-5.90%
ADAM	54 Neutral	$708.01M	41.59	4.52%	11.99%	36.78%	―
KREF	52 Neutral	$526.49M	-22.54	-0.16%	11.33%	-24.37%	-19.19%
RWT	49 Neutral	$715.75M	-6.90	-9.19%	13.13%	34.68%	-251.91%
CMTG	47 Neutral	$395.42M	-1.06	-19.24%	―	-65.32%	-325.73%
RC	44 Neutral	$340.47M	-1.06	-14.78%	26.82%	-43.56%	-166.72%

Adamas Trust Corporate Events

Adamas Trust Raises $90 Million Through Senior Notes

On January 13, 2026, Adamas Trust, Inc. completed a public issuance and sale of $90 million aggregate principal amount of 9.250% Senior Notes due 2031, issued at par and structured as senior unsecured obligations ranking pari passu with its existing senior notes and effectively and structurally subordinated to certain secured and subsidiary-level liabilities. The notes, which pay cash interest quarterly starting April 1, 2026 and may be redeemed at par on or after April 1, 2028, generated expected net proceeds of approximately $86.6 million that the company plans to use for general corporate purposes, including potential asset acquisitions and/or repayment of existing debt, reinforcing its funding base and extending the maturity profile of its capital structure while providing investors with higher-yield fixed-income exposure to the issuer.

The most recent analyst rating on (ADAM) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Adamas Trust stock, see the ADAM Stock Forecast page.

Adamas Trust Declares Quarterly Cash Dividend

On December 11, 2025, Adamas Trust, Inc. announced that its Board of Directors declared a regular quarterly cash dividend of $0.23 per share on its common stock for the quarter ending December 31, 2025. Additionally, the Board declared cash dividends on several series of its preferred stock for the dividend period from October 15, 2025, to January 14, 2026. These dividends reflect the company’s ongoing commitment to providing returns to its shareholders and may enhance its attractiveness to investors seeking income-generating investments.

The most recent analyst rating on (ADAM) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Adamas Trust stock, see the ADAM Stock Forecast page.

Adamas Trust Reports Strong Q3 2025 Financial Results

Adamas Trust, Inc. reported its third-quarter 2025 financial results, highlighting a net income of $32.7 million and earnings available for distribution of $22 million. The company achieved significant investment activity, acquiring $1.8 billion in agency investments and $525.7 million in residential loans, while also increasing its quarterly dividend to $0.23 per share. The strategic moves, including the acquisition of the remaining interest in Constructive Loans, LLC, reflect Adamas Trust’s focus on long-term value creation and strengthening its position in the investment ecosystem.

The most recent analyst rating on (ADAM) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Adamas Trust stock, see the ADAM Stock Forecast page.