Adamas Trust (ADAM)
NASDAQ:ADAM
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Adamas Trust
(NASDAQ:ADAM)
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Rating:68Neutral
Price Target:
$9.50
▲(20.56% Upside)
Action:ReiteratedDate:05/09/26
The score is anchored by mixed financial fundamentals: strong recent profitability and earnings momentum are offset by very high leverage and relatively thin cash-flow coverage versus debt. Supportive technical momentum and very attractive valuation (low P/E and high dividend yield) lift the score, while earnings-call risks around spreads and funding/market volatility keep it from scoring higher.
Positive Factors
Strong profitability and margins
Sustained high operating profitability (TTM EBITDA margin ~41.7%) and positive net income provide durable internal cash generation and earnings quality. Over 2–6 months this supports dividend coverage, reinvestment capacity and resilience versus peers if earnings persist.
Negative Factors
Very high leverage
Extremely elevated leverage materially reduces financial flexibility and amplifies downside from spread moves or mark‑to‑market losses. Over the next several months high fixed obligations mean limited room to absorb adverse market shocks without asset sales or more costly refinancing.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and margins
Sustained high operating profitability (TTM EBITDA margin ~41.7%) and positive net income provide durable internal cash generation and earnings quality. Over 2–6 months this supports dividend coverage, reinvestment capacity and resilience versus peers if earnings persist.
Read all positive factors
Adamas Trust (ADAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$793.47M
Dividend Yield11.99%
Average Volume (3M)688.53K
Price to Earnings (P/E)3.4
Beta (1Y)0.85
Revenue Growth42.12%
EPS GrowthN/A
CountryUS
Employees70
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)1.19
Shares Outstanding89,861,110
10 Day Avg. Volume576,687
30 Day Avg. Volume688,528
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.46
Price to Sales (P/S)0.82
P/FCF Ratio5.24
Enterprise Value/Market Cap14.79
Enterprise Value/Revenue13.25
Enterprise Value/Gross Profit28.89
Enterprise Value/Ebitda51.95
Forecast
1Y Price Target
$9.69Price Target Upside22.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.92
Revenue Forecast (FY)$265.63M
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-ag...
How the Company Makes Money
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Adamas Trust Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial momentum: strong sequential and year-over-year earnings growth (EAD +26% QoQ, +45% YoY), book value gains, successful capital deployment (> $1B deployed), Constructive moving to profitability and improved liquidity and hedging outcomes. These positives were partially offset by macro-driven volatility (wide agency spread swings), modest compression in net interest spread, securitization spread volatility, and a persistent market valuation discount on the equity. On balance, the company demonstrated resilience, executed on strategic priorities, and advanced earnings scalability despite a challenging market environment.Positive Updates
Strong Earnings Growth
GAAP net income attributable to common stockholders of $36.9M, GAAP EPS $0.41 and Earnings Available for Distribution (EAD) $0.29 per share — EAD increased 26% quarter-over-quarter and 45% year-over-year, while EAD exceeded the $0.23 dividend.
Negative Updates
Market Volatility and Spread Swings
Geopolitical developments (Middle East/Iran) drove heightened volatility: agency current coupon spreads tightened to ~94 bps in January then widened to a peak of ~131 bps in late March before settling ~124 bps at quarter end, increasing repricing risk and hedging complexity.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Earnings Growth
GAAP net income attributable to common stockholders of $36.9M, GAAP EPS $0.41 and Earnings Available for Distribution (EAD) $0.29 per share — EAD increased 26% quarter-over-quarter and 45% year-over-year, while EAD exceeded the $0.23 dividend.
Read all positive updates
Company Guidance
Management’s guidance emphasized continued EAD-driven earnings growth and disciplined capital deployment: EAD was $0.29 (up 26% QoQ and 45% YoY) versus a $0.23 dividend, and the Board is evaluating sustainable dividend growth while prioritizing book‑value preservation; GAAP EPS was $0.41, GAAP book value rose 4% to $9.98 and adjusted book value rose 1.6% to $10.80 (QTD adjusted BV estimated +2–2.5%). They plan to keep Agency RMBS ~56% of capital (agency portfolio $6.8B, agency leverage 7.8x) while accelerating residential credit (Q1 acquisitions >$1B: $510M agency, $502M residential credit including $400M BPL rental), grow the investment portfolio from $10.9B, and target 5–6 BPL rental securitizations this year (BPL rental exposure $1.8B); Constructive should scale origination (Q1 production $422M, mortgage‑banking income $15.3M, stand‑alone profit ~$2.5M, ROE ~13% vs 15% target). Financial posture remains conservative with $199M cash, ~$418M total liquidity, company recourse leverage 5.2x (portfolio recourse 4.9x), adjusted NII $48.2M (net interest spread 145 bps), consolidated G&A $24.5M and an expected 7–7.5% G&A ratio for 2026.Adamas Trust Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
34
Negative
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 885.78M | 805.53M | 558.92M | 500.80M | 138.11M | 380.19M |
| Gross Profit | 406.12M | 352.88M | 238.28M | 308.67M | 8.69M | 300.91M |
| EBITDA | 225.87M | 177.51M | -32.88M | -25.60M | -187.15M | 242.32M |
| Net Income | 155.49M | 149.05M | -62.03M | -48.66M | -298.61M | 193.20M |
Balance Sheet | ||||||
| Total Assets | 12.79B | 12.64B | 9.22B | 7.40B | 6.24B | 5.66B |
| Cash, Cash Equivalents and Short-Term Investments | 208.91M | 210.33M | 4.00B | 2.20B | 344.28M | 490.45M |
| Total Debt | 11.15B | 11.00B | 3.56B | 2.81B | 2.65B | 2.52B |
| Total Liabilities | 11.33B | 11.21B | 7.81B | 5.77B | 4.38B | 3.23B |
| Stockholders Equity | 1.46B | 1.43B | 1.39B | 1.58B | 1.77B | 2.34B |
Cash Flow | ||||||
| Free Cash Flow | 90.54M | 125.89M | 4.60M | 29.95M | 91.78M | 138.91M |
| Operating Cash Flow | 91.51M | 134.04M | 14.07M | 29.95M | 91.78M | 138.91M |
| Investing Cash Flow | -2.19B | -2.90B | -2.24B | -1.22B | -508.77M | -132.95M |
| Financing Cash Flow | 2.19B | 2.78B | 2.23B | 1.14B | 460.07M | 27.41M |
Adamas Trust Technical Analysis
Positive
7.88
Price Trends
7.66
Positive
7.50
Positive
6.94
Positive
Market Momentum
0.04
Negative
60.37
Neutral
81.26
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 7.88 is above the 20-day moving average (MA) of 7.43, above the 50-day MA of 7.66, and above the 200-day MA of 6.94, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 60.37 is Neutral, neither overbought nor oversold. The STOCH value of 81.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADAM.
Adamas Trust Risk Analysis
Adamas Trust disclosed 76 risk factors in its most recent earnings report. Adamas Trust 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
Adamas Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $793.47M | 3.42 | 11.00% | 11.99% | 42.12% | ― | |
66 Neutral | $662.53M | 8.07 | 6.09% | 10.48% | 0.84% | -8.55% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
50 Neutral | $312.26M | -0.33 | -12.90% | 26.82% | -56.96% | -78.75% | |
50 Neutral | $427.64M | -1.76 | -8.30% | 11.33% | -20.03% | -1249.19% | |
49 Neutral | $697.45M | -31.82 | -9.19% | 13.13% | 16.94% | -469.13% | |
45 Neutral | $339.33M | -1.54 | -28.06% | ― | 106.26% | -86.85% |
* Real Estate Sector Average
ADAM
Adamas Trust
8.83
2.89
48.60%
RWT
Redwood
5.57
0.37
7.03%
RC
Ready Capital
1.89
-2.08
-52.39%
KREF
Kkr Real Estate Finance
6.61
-1.81
-21.53%
TRTX
Tpg Re Finance
8.57
1.55
22.01%
CMTG
Claros Mortgage Trust
2.42
-0.17
-6.56%
Adamas Trust Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Adamas Trust Posts Robust Q1 2026 Earnings and Growth
Positive
Apr 29, 2026
Adamas Trust, Inc. reported strong first-quarter 2026 results on April 29, 2026, with GAAP earnings of $0.41 per share and earnings available for distribution of $0.29 per share, outpacing its $0.23 dividend and underscoring solid earnings momentu...
DividendsShareholder Meetings
Adamas Trust Declares Quarterly Dividends and Sets Meeting
Positive
Mar 19, 2026
Adamas Trust, Inc., an internally managed real estate investment trust, concentrates on capital deployment across complementary real estate and capital markets businesses. The company seeks to deliver durable earnings and long-term stockholder val...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Adamas Trust Extends Buyback Programs, Refinances Senior Notes
Positive
Feb 18, 2026
Adamas Trust reported that 2025 was a transformational year, with net income attributable to common stockholders reaching $101.1 million and earnings available for distribution of $80.6 million for the year ended December 31, 2025. The company exp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.