Cherry Hill Mortgage (CHMI) AI Stock Analysis

• Market Cap: $87.07M
• Dividend Yield: 23.21%
• Average Volume (3M): 316.91K
• Price to Earnings (P/E): 123.4
• Beta (1Y): 0.66
• Revenue Growth: 22.14%
• EPS Growth: N/A
• Country: US
• Employees: 12
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.09
• Shares Outstanding: 36,739,536
• 10 Day Avg. Volume: 291,803
• 30 Day Avg. Volume: 316,907
• PEG Ratio: -0.07
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.68
• P/FCF Ratio: -17.39
• Enterprise Value/Market Cap: 15.92
• Enterprise Value/Revenue: 63.86
• Enterprise Value/Gross Profit: 69.01
• Enterprise Value/Ebitda: 80.15
• 1Y Price Target: $3.00
• Price Target Upside: 26.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.49
• Revenue Forecast (FY): $27.45M

• Rating: 54 Neutral
• Price Target: $2.50 ▲(5.04% Upside)

Cherry Hill Mortgage's overall stock score reflects a mix of strong revenue growth and improved cash flow, offset by challenges in profitability and leverage management. The high dividend yield is a positive, but technical indicators suggest bearish momentum. The earnings call provided some optimism with strategic partnerships and increased net income, but rising expenses remain a concern.

Cherry Hill Mortgage Business Overview & Revenue Model

Company Description

Cherry 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 Money

Cherry 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 Financial Statement Overview

Summary

Cherry Hill Mortgage shows strong revenue growth and improved cash flow generation, but struggles with profitability and leverage management. The company needs to address operational inefficiencies and cost controls to enhance net margins and return on equity. While the balance sheet shows improvement in leverage, historical high debt levels remain a concern.

Income Statement

Cherry Hill Mortgage's income statement shows a mixed performance. The company experienced a significant revenue growth of 71.57% in the TTM period, indicating strong top-line expansion. However, the net profit margin is negative at -7.77%, reflecting challenges in achieving profitability. The gross profit margin is healthy at 58.98%, but the negative net income suggests cost management issues. The EBIT and EBITDA margins are relatively low, indicating operational inefficiencies.

Balance Sheet

The balance sheet presents a moderate financial position. The debt-to-equity ratio has improved to 0.65 in the TTM period from a high of 5.35, indicating better leverage management. However, the return on equity is negative at -2.58%, reflecting poor profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced asset structure, but the high historical leverage poses potential risks.

Cash Flow

Cash flow analysis reveals a positive trend with a 55.71% growth in free cash flow in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.16, suggesting that operating cash flow is not fully covering net income. However, the free cash flow to net income ratio is strong at 1.00, showing effective cash conversion despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.71M	34.58M	-21.20M	40.19M	28.14M	-56.47M
Gross Profit	20.09M	34.58M	-21.20M	40.19M	28.14M	-56.47M
EBITDA	17.30M	0.00	0.00	0.00	0.00	0.00
Net Income	14.72M	11.97M	-34.79M	21.74M	12.28M	-52.24M
Balance Sheet
Total Assets	1.52B	1.49B	1.39B	1.41B	1.30B	1.59B
Cash, Cash Equivalents and Short-Term Investments	55.45M	70.76M	69.33M	65.55M	76.78M	130.22M
Total Debt	147.36M	1.23B	1.09B	1.03B	1.01B	1.27B
Total Liabilities	1.29B	1.26B	1.13B	1.14B	1.02B	1.28B
Stockholders Equity	233.13M	230.34M	255.48M	262.04M	275.86M	310.16M
Cash Flow
Free Cash Flow	16.67M	-4.69M	40.66M	21.88M	-7.37M	8.24M
Operating Cash Flow	16.67M	-4.69M	40.66M	59.91M	48.01M	61.20M
Investing Cash Flow	2.01M	-141.33M	-104.05M	-128.20M	166.52M	1.26B
Financing Cash Flow	-8.69M	147.46M	67.17M	57.07M	-267.97M	-1.28B

Cherry Hill Mortgage Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHMI, the sentiment is Neutral. The current price of 2.38 is above the 20-day moving average (MA) of 2.37, below the 50-day MA of 2.47, and below the 200-day MA of 2.70, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.29 is Neutral, neither overbought nor oversold. The STOCH value of 40.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHMI.

Cherry Hill Mortgage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOAN	71 Outperform	$56.96M	10.76	12.23%	9.34%	-8.80%	-5.99%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
LFT	57 Neutral	$81.13M	8.54	6.01%	22.73%	-24.12%	-47.91%
CHMI	54 Neutral	$87.07M	123.44	4.55%	23.21%	22.14%	―
ACR	54 Neutral	$158.17M	22.38	6.58%	―	-18.37%	18.80%
GPMT	49 Neutral	$124.17M	-1.23	-9.11%	7.22%	-28.13%	62.49%
SACH	47 Neutral	$50.18M	-1.16	-16.33%	19.05%	-63.70%	-325.57%

Cherry Hill Mortgage Corporate Events

Cherry Hill Mortgage Reports Solid Q3 2025 Results

Cherry Hill Mortgage Investment Corporation is a real estate finance company that acquires, invests in, and manages residential mortgage assets in the United States. In its third quarter of 2025, Cherry Hill Mortgage Investment Corporation reported a GAAP net income of $2.0 million, or $0.05 per share, and earnings available for distribution of $3.3 million, or $0.09 per diluted share. The company declared a regular common dividend of $0.10 per share, resulting in an annualized dividend yield of 17.0%. Key financial metrics for the quarter included a common book value per share of $3.36 and an aggregate portfolio leverage of 5.3x. The company maintained a robust liquidity position with $55.4 million in unrestricted cash. Cherry Hill’s portfolio performance was marked by a net servicing fee income of $8.5 million and a net interest income of $3.3 million, despite experiencing realized losses on derivatives. The company strategically utilized interest rate swaps, TBAs, and Treasury futures to mitigate risks associated with its RMBS and MSR portfolios. Looking ahead, Cherry Hill Mortgage Investment Corporation remains focused on tactically responding to a lower interest rate environment and strategically growing its portfolio to deliver attractive risk-adjusted returns for its shareholders.

Cherry Hill Mortgage Appoints New CFO and Treasurer

Cherry Hill Mortgage Investment Corporation announced the appointment of Apeksha Patel as the Chief Financial Officer and Treasurer, effective August 22, 2025. This appointment follows her interim role, and while her title has changed, her employment terms remain consistent with previous disclosures.

The most recent analyst rating on (CHMI) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Cherry Hill Mortgage stock, see the CHMI Stock Forecast page.

Cherry Hill Mortgage’s Mixed Earnings Call: Strategic Gains Amid Financial Struggles

Cherry Hill Mortgage Investment’s recent earnings call revealed a mixed sentiment, reflecting both strategic progress and financial challenges. The company announced a promising partnership with Real Genius LLC and maintained stable earnings available for distribution. However, these positive strides were tempered by a GAAP net loss, a decrease in book value, and a lower net interest spread, indicating a complex financial landscape.

Cherry Hill Mortgage Reports Q2 2025 Results

Cherry Hill Mortgage Investment Corporation is a real estate finance company that acquires, invests in, and manages residential mortgage assets in the United States.