Education
About Us
Working with TipRanks
Follow Us
Cherry Hill Mortgage (CHMI)
NYSE:CHMI
Top Page
Cherry Hill Mortgage
(NYSE:CHMI)51Neutral
Cherry Hill Mortgage (CHMI) vs. S&P 500 (SPY)
Market Cap
$115.36M
Dividend Yield16.76%
Average Volume (3M)262.74K
Price to Earnings (P/E)52.4
Beta (1Y)1.46
Revenue Growth16.46%
EPS Growth29.76%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)0.06
Shares Outstanding31,625,072
10 Day Avg. Volume256,651
30 Day Avg. Volume262,740
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)6.50
P/FCF Ratio6.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside11.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Cherry Hill Mortgage Business Overview & Revenue Model
Company DescriptionCherry Hill Mortgage Investment Corporation (CHMI) is a real estate finance company operating within the financial services sector. It specializes in acquiring, investing in, and managing residential mortgage assets in the United States. The company primarily focuses on mortgage servicing rights (MSRs) and residential mortgage-backed securities (RMBS), aiming to generate returns for its investors through a diversified portfolio of mortgage-related investments.
How the Company Makes MoneyCherry Hill Mortgage Investment Corporation makes money through a variety of revenue streams centered on its investments in mortgage-related assets. The company derives income from the interest payments on residential mortgage-backed securities (RMBS) it holds, which are pools of mortgage loans packaged together and sold as securities. Another significant source of revenue is the mortgage servicing rights (MSRs) it owns. MSRs allow the company to earn fees from servicing the underlying mortgage loans, including collecting principal and interest payments from borrowers and managing escrow accounts. Cherry Hill Mortgage also engages in hedging activities to manage interest rate risk, which can impact its earnings. The company's ability to generate income is influenced by factors such as interest rate fluctuations, housing market conditions, and the credit performance of the underlying mortgages.
Cherry Hill Mortgage Financial Statement Overview
Summary
Cherry Hill Mortgage faces significant challenges across its financial statements. The income statement reveals negative profitability and inconsistent earnings. The balance sheet shows high leverage, posing financial risks, and cash flow analysis indicates difficulties in sustaining positive cash flow trends. Overall, the company's financial health is concerning, with potential risks from high debt levels and negative earnings.Income Statement
The company shows volatility in revenue with a negative trend in recent periods, evidenced by negative revenues in the last annual report. The net profit margin is also negative, indicating ongoing losses. While there are occasional improvements, the overall income performance remains weak due to inconsistent earnings.45
Neutral
Balance Sheet
Cherry Hill Mortgage maintains a relatively stable equity ratio, but the company is highly leveraged with a high debt-to-equity ratio, presenting a risk of financial instability. The return on equity has been negative in recent periods, reflecting significant challenges in profitability.60
Neutral
Cash Flow
The cash flow statement shows fluctuating free cash flow with recent negative trends. Operating cash flow is positive but insufficient to cover net income losses consistently. The free cash flow to net income ratio indicates the company struggles to generate sufficient cash relative to its net earnings.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 33.79M | -9.95M | 40.19M | 28.14M | -57.32M | -47.89M | Gross Profit |
| 24.55M | -21.20M | 28.36M | 14.51M | -114.65M | -95.77M | EBIT |
| -21.20M | -34.93M | 44.82M | 13.06M | -71.00M | -59.62M | EBITDA |
| 15.20M | -9.19M | -450.00K | 13.06M | 979.00K | -59.62M | Net Income Common Stockholders |
| -32.63M | -34.79M | 21.74M | 12.28M | -53.22M | -43.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 337.06M | 72.39M | 337.06M | 1.02B | 1.31B | 2.53B | Total Assets |
| 1.41B | 1.39B | 1.41B | 1.30B | 1.59B | 2.96B | Total Debt |
| 183.89M | 1.10B | 183.89M | 145.27M | 111.38M | 166.99M | Net Debt |
| 126.57M | 1.05B | 126.57M | 81.35M | 27.49M | 142.32M | Total Liabilities |
| 1.14B | 1.13B | 1.14B | 1.02B | 1.28B | 2.54B | Stockholders Equity |
| 262.04M | 255.48M | 262.04M | 275.87M | 310.17M | 408.68M |
| Cash Flow | Free Cash Flow | ||||
| 7.97M | 40.66M | 21.88M | -7.37M | 8.24M | -33.29M | Operating Cash Flow |
| 7.97M | 40.66M | 59.91M | 48.01M | 61.20M | 69.68M | Investing Cash Flow |
| -107.64M | -104.05M | -128.20M | 166.52M | 1.26B | -757.12M | Financing Cash Flow |
| 83.89M | 67.17M | 57.07M | -267.97M | -1.28B | 739.12M |
Cherry Hill Mortgage Technical Analysis
Positive
3.58
Price Trends
3.16
Positive
2.98
Positive
3.14
Positive
Market Momentum
0.08
Positive
61.18
Neutral
35.24
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 3.58 is above the 20-day moving average (MA) of 3.51, above the 50-day MA of 3.16, and above the 200-day MA of 3.14, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 61.18 is Neutral, neither overbought nor oversold. The STOCH value of 35.24 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 70 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $9.50B | 11.16 | 9.58% | 13.87% | 384.69% | 963700.00% | |
68 Neutral | $12.64B | 13.48 | 8.40% | 11.90% | 13.33% | ― | |
68 Neutral | $1.23B | 10.12 | 9.45% | 11.76% | 11.91% | 52.26% | |
63 Neutral | $1.12B | 13.36 | 6.35% | 12.82% | 26.34% | 79.07% | |
62 Neutral | $1.46B | 5.93 | 13.74% | 12.79% | 28.33% | ― | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
51 Neutral | $115.36M | 52.42 | 4.93% | 16.76% | 16.46% | 29.76% |
* Real Estate Sector Average
Performance Comparison
CHMI
Cherry Hill Mortgage
3.58
0.74
26.06%
AGNC
AGNC Investment
10.38
1.90
22.41%
NLY
Annaly Capital
21.85
4.53
26.15%
EFC
Ellington Financial
13.60
3.54
35.19%
MFA
MFA Financial
10.92
1.04
10.53%
TWO
Two Harbors
14.07
2.88
25.74%
Cherry Hill Mortgage Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 6.87% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. Highlights included the successful internalization of management, which is expected to reduce operating expenses, and strong liquidity and leverage management. However, these positives were offset by challenges such as a decline in book value, the impact of higher rates and increased volatility on the RMBS portfolio, and lower earnings available for distribution.Highlights
Completion of Internalization of Management
The company successfully completed the internalization of management, aligning management and shareholders more closely and eliminating conflicts of interest. This move is expected to reduce operating expenses in 2025 by $1.1 to $1.6 million, or three to five cents per common share.
Strong Liquidity and Prudent Leverage
The company ended the quarter with $46 million of unrestricted cash on the balance sheet and maintained a solid liquidity profile with financial leverage remaining consistent at 5.3 times.
Increased MSR Portfolio Value
The MSR portfolio saw gains quarter over quarter, with a UPB of $17.3 billion and a market value of approximately $234 million.
Lowlights
Book Value Decline
Book value per common share finished the year at $3.82 compared to $4.02 on September 30th, representing a decrease of approximately 2.3%.
Impact of Higher Rates and Increased Volatility
The RMBS portfolio was impacted by higher rates, increased volatility, and spread widening, although partially mitigated by gains in the MSR portfolio.
Lower Earnings Available for Distribution
Earnings available for distribution were $3.3 million or $0.10 per share, impacted by approximately two cents per share of expenses related to the special committee's efforts.
Company Guidance
In the Cherry Hill Mortgage Investment Corporation's fourth quarter 2024 earnings call, the management provided key guidance metrics and insights into their financial performance and strategic direction. The ten-year yield closed the year at 4.57%, marking an increase of nearly eighty basis points quarter over quarter, as inflation remained stubborn. Cherry Hill's RMBS portfolio experienced spread widening due to higher rates and volatility, but this was partially offset by gains in their MSR portfolio. The company completed the internalization of management, which is expected to reduce operating expenses by $1.1 to $1.6 million in 2025, translating to a three to five cents per common share saving. For the quarter, Cherry Hill reported a GAAP net income of $0.29 per diluted share and earnings available for distribution (EAD) of $3.3 million, or ten cents per share. The company's book value per common share decreased from $4.02 to $3.82, and their financial leverage remained steady at 5.3 times. Looking ahead, Cherry Hill plans to focus on agency RMBS and select MSRs, maintaining strong liquidity and prudent leverage, and adapting their strategy to the evolving macroeconomic environment.Cherry Hill Mortgage Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Cherry Hill Mortgage Transitions to Internal Management Model
Positive
Nov 20, 2024
Cherry Hill Mortgage Investment Corporation has transitioned to a fully integrated, internally managed mortgage REIT by terminating its management agreement with Cherry Hill Mortgage Management, LLC. This strategic move, which included new employment arrangements for senior management, aims to reduce expenses and enhance earnings, aligning the company’s interests with the investment community. This change follows a comprehensive review by an independent board committee, which concluded that internal management is in the company’s best interests.
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.