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Cherry Hill Mortgage Investment (CHMI)
NYSE:CHMI
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Cherry Hill Mortgage
(NYSE:CHMI)
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Rating:55Neutral
Price Target:
$3.00
▲(26.05% Upside)
Action:ReiteratedDate:03/06/26
The score is held back primarily by inconsistent financial performance and weak recent cash generation (negative operating/free cash flow in 2024–2025). Technical signals are moderately supportive with price above key moving averages and positive momentum, while valuation is mixed—boosted by a very high dividend yield but constrained by a negative P/E. Earnings-call commentary adds a modest positive tilt due to stable leverage, liquidity, and book value improvement, tempered by cost pressures.
Positive Factors
Strategic Partnerships
The partnership with Real Genius LLC enhances Cherry Hill Mortgage's technological capabilities, potentially improving loan origination efficiency and expanding market reach, which could drive long-term growth.
Revenue Growth
Strong revenue growth indicates robust demand for Cherry Hill Mortgage's services and effective portfolio management, positioning the company for sustained expansion in the mortgage sector.
Cash Flow Improvement
Improved cash flow generation enhances Cherry Hill Mortgage's ability to invest in growth opportunities and manage financial obligations, supporting long-term financial stability.
Negative Factors
Profitability Challenges
Negative profit margins highlight ongoing challenges in cost management and operational efficiency, which could hinder Cherry Hill Mortgage's ability to achieve sustainable profitability.
Rising Operating Expenses
Increasing operating expenses, driven by personnel changes and professional fees, may pressure margins and limit Cherry Hill Mortgage's ability to improve profitability in the near term.
High Historical Leverage
While leverage has improved, the company's history of high debt levels poses a risk to financial flexibility and could impact its ability to navigate economic downturns.
Cherry Hill Mortgage (CHMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$98.46M
Dividend Yield21.65%
Average Volume (3M)153.05K
Price to Earnings (P/E)3.0
Beta (1Y)0.72
Revenue Growth22.14%
EPS GrowthN/A
CountryUS
Employees12
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.11
Shares Outstanding36,739,536
10 Day Avg. Volume178,105
30 Day Avg. Volume153,049
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)-0.73
Price to Sales (P/S)-1.63
P/FCF Ratio36.57
Enterprise Value/Market Cap13.51
Enterprise Value/Revenue32.98
Enterprise Value/Gross Profit39.58
Enterprise Value/Ebitda34.78
Forecast
1Y Price Target
$3.00Price Target Upside26.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.54
Revenue Forecast (FY)$44.90M
Cherry Hill Mortgage Business Overview & Revenue Model
Company DescriptionCherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. The company operates through Investments in RMBS (residential mortgage-backed securities), Investments in Servicing Related Assets, and All Other segments. It manages a portfolio of servicing related assets and RMBS. Cherry Hill Mortgage Investment Corporation qualifies as a real estate investment trust for federal income tax purposes. The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Cherry Hill Mortgage Investment Corporation was incorporated in 2012 and is based in Farmingdale, New Jersey.
How the Company Makes MoneyCherry Hill Mortgage generates revenue through several key streams. The primary source of income comes from interest income earned on the mortgage loans and mortgage-backed securities it holds in its portfolio. Additionally, the company may earn income from servicing fees and net interest income from its investment in mortgage loans. CHMI also engages in the origination and acquisition of mortgage loans, which may contribute to its earnings through gain on sale of loans. Strategic partnerships with mortgage origination platforms and financial institutions help boost its loan origination capabilities, further enhancing its revenue potential.
Cherry Hill Mortgage Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The earnings call highlighted positive financial metrics such as increased GAAP net income, book value, and strategic partnerships, suggesting a positive outlook. However, there were some concerns regarding increased operating expenses and servicing costs.Q3-2025 Updates
Positive Updates
GAAP Net Income
Generated GAAP net income applicable to common stockholders of $0.05 per diluted share, with comprehensive income of $4.5 million or $0.12 per diluted share.
Book Value Increase
Book value per common share increased to $3.36 from $3.34 as of June 30, 2025.
Strategic Partnership with Real Genius
Positive momentum with Real Genius LLC, a digital mortgage technology company, suggesting growth potential with reduced mortgage rates.
Dividend Adjustments
Strategic decision to adjust dividend to $0.10 per share, aligning with the company's earnings power.
Portfolio Performance
MSR portfolio had a UPB of $16.2 billion with a market value of approximately $219 million, and RMBS portfolio net interest spread increased to 2.87%.
Negative Updates
Operating Expenses Increase
Operating expenses rose to $3.8 million for the quarter, partly due to personnel changes and professional fees.
Servicing Costs
Sequential rise in servicing costs due to absence of deboarding fee reimbursement seen in Q2.
Company Guidance
During Cherry Hill Mortgage Investment Corporation's Third Quarter 2025 Conference Call, the management provided financial guidance and updates on several metrics. They reported a GAAP net income of $2 million or $0.05 per diluted share, with a book value per common share ending at $3.36, slightly up from $3.34 on June 30. Comprehensive income was $4.5 million or $0.12 per share, while earnings available for distribution (EAD) were $3.3 million or $0.09 per share. The company's financial leverage remained stable at 5.3x, with $55 million in unrestricted cash. They declared a $0.10 per share dividend for common stock and also announced dividends on their preferred stock. The RMBS portfolio accounted for 39% of their equity capital, with a net interest spread of 2.87%, while the MSR portfolio's net CPR averaged 5.9%. The company has strategically positioned itself to benefit from declining interest rates and lower funding costs, and they expect agency prepayment speeds to increase. They also highlighted the positive momentum from their partnership with Real Genius LLC, expecting growth as 30-year mortgage rates hover around 6%.Cherry Hill Mortgage Financial Statement Overview
Summary
Revenue rebounded sharply and net income returned in 2025, with moderate leverage. However, earnings have been volatile across years and operating/free cash flow turned negative in 2024–2025 despite positive net income, raising sustainability and liquidity-quality concerns.Income Statement
Results are volatile. Annual revenue rebounded sharply in 2025 ($105.4M, +205% YoY) after a weak/negative 2023, and profitability returned with $6.8M net income in 2025. However, net margin compressed materially versus 2024 (about 6.5% in 2025 vs. ~34.6% in 2024), and the multi-year pattern includes large losses (notably 2020 and 2023), which lowers confidence in earnings stability.54
Neutral
Balance Sheet
Leverage looks moderate for the period shown, with debt-to-equity running roughly ~0.53–0.70 and improving to ~0.62 in 2025, suggesting balance sheet risk is not extreme. Equity has generally been maintained in the $230M–$310M range, but returns on equity are inconsistent (negative in 2020 and 2023, modestly positive in 2024–2025), indicating profitability hasn’t been steady enough to consistently compound shareholder value.63
Positive
Cash Flow
Cash generation is the weakest area. Operating cash flow and free cash flow were negative in both 2024 and 2025 (-$4.7M each year), even as the company reported positive net income, pointing to earnings quality/timing mismatch. While 2022–2023 showed strong positive operating and free cash flow, the recent shift to negative cash flow and sharply negative free cash flow growth in 2025 increases liquidity and funding-risk concerns.34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 105.39M | 34.58M | -21.20M | 40.19M | 28.14M |
| Gross Profit | 96.11M | 34.58M | -21.20M | 40.19M | 28.14M |
| EBITDA | 58.92M | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 6.83M | 11.97M | -34.79M | 21.74M | 12.28M |
Balance Sheet | |||||
| Total Assets | 1.54B | 1.49B | 1.39B | 1.41B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 54.95M | 46.31M | 52.89M | 173.58M | 124.52M |
| Total Debt | 1.29B | 151.23M | 169.31M | 183.89M | 145.27M |
| Total Liabilities | 1.30B | 1.26B | 1.13B | 1.14B | 1.02B |
| Stockholders Equity | 236.04M | 230.34M | 255.48M | 262.04M | 275.87M |
Cash Flow | |||||
| Free Cash Flow | -4.69M | -4.69M | 40.66M | 21.88M | -7.37M |
| Operating Cash Flow | -4.69M | -4.69M | 40.66M | 59.91M | 48.01M |
| Investing Cash Flow | -141.33M | -141.33M | -104.05M | -128.20M | 166.52M |
| Financing Cash Flow | 147.46M | 147.46M | 67.17M | 57.07M | -267.97M |
Cherry Hill Mortgage Technical Analysis
Positive
2.38
Price Trends
2.64
Positive
2.54
Positive
2.59
Positive
Market Momentum
0.01
Negative
53.77
Neutral
54.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHMI, the sentiment is Positive. The current price of 2.38 is below the 20-day moving average (MA) of 2.64, below the 50-day MA of 2.64, and below the 200-day MA of 2.59, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 53.77 is Neutral, neither overbought nor oversold. The STOCH value of 54.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHMI.
Cherry Hill Mortgage Risk Analysis
Cherry Hill Mortgage disclosed 5 risk factors in its most recent earnings report. Cherry Hill Mortgage 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
Cherry Hill Mortgage Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $49.53M | 13.06 | 12.22% | 9.28% | -8.80% | -5.99% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
58 Neutral | $136.49M | 16.18 | 4.99% | ― | -18.37% | 18.80% | |
55 Neutral | $98.46M | 3.02 | 2.95% | 21.65% | 22.14% | ― | |
55 Neutral | $47.01M | 7.73 | 3.56% | 19.80% | -63.70% | -325.57% | |
53 Neutral | $74.88M | 14.34 | 4.21% | 23.03% | -31.69% | -72.10% | |
45 Neutral | $74.20M | -2.79 | -7.12% | 7.97% | -28.13% | 62.49% |
* Real Estate Sector Average
CHMI
Cherry Hill Mortgage
2.68
-0.48
-15.19%
LOAN
Manhattan Bridge Capital
4.33
-0.99
-18.61%
ACR
ACRES Commercial Realty
19.14
-4.07
-17.54%
LFT
Lument Finance Trust
1.43
-1.11
-43.66%
SACH
Sachem Capital
0.98
<0.01
0.41%
GPMT
Granite Point Mortgage
1.56
-1.09
-41.24%
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.