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Cherry Hill Mortgage (CHMI)
NYSE:CHMI
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Cherry Hill Mortgage
(NYSE:CHMI)
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Rating:49Neutral
Price Target:
$2.50
▲(2.46% Upside)
Cherry Hill Mortgage's overall stock score reflects a mix of strong revenue growth and cash flow improvements, but significant challenges in profitability and leverage management. The technical indicators suggest a bearish trend, and while the high dividend yield is appealing, the negative earnings and book value decline weigh heavily on the stock's attractiveness. Strategic partnerships offer potential upside, but current financial performance remains a concern.
Cherry Hill Mortgage (CHMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.95M
Dividend Yield22.54%
Average Volume (3M)312.49K
Price to Earnings (P/E)43.8
Beta (1Y)0.99
Revenue Growth-2.02%
EPS Growth-20.61%
CountryUS
Employees12
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.10
Shares Outstanding36,045,094
10 Day Avg. Volume381,714
30 Day Avg. Volume312,486
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap15.53
Enterprise Value/Revenue17.83
Enterprise Value/Gross Profit30.23
Enterprise Value/Ebitda39.83
Forecast
1Y Price Target
$2.50Price Target Upside2.46% Upside
Rating ConsensusHold
Number of Analyst Covering1
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:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Negative
The earnings call highlighted some strategic initiatives, such as the partnership with Real Genius, which could lead to future growth and profitability. However, the financial results for the quarter were negative, with a GAAP net loss and a decrease in book value per share. The negative performance in the Agency MBS sector also contributed to the overall challenges faced during the quarter.Q2-2025 Updates
Positive Updates
Strategic Partnership with Real Genius LLC
During the quarter, Cherry Hill entered into a strategic partnership and investment with Real Genius LLC, a Florida-based digital mortgage technology company, offering an efficient fully online mortgage experience. The partnership aims to accelerate growth and is expected to be profitable within the first 6 to 7 months.
Solid Liquidity Position
Cherry Hill ended the quarter with $58 million of unrestricted cash on the balance sheet, maintaining a solid liquidity profile.
Negative Updates
GAAP Net Loss
For the second quarter, Cherry Hill generated a GAAP net loss applicable to common stockholders of $0.03 per diluted share.
Decrease in Book Value
Book value per common share decreased to $3.34 from $3.58 as of March 31, 2025.
Negative Performance in Agency MBS Sector
The negative performance was primarily driven by the mortgage basis underperforming both swap and treasury hedges, resulting in a comprehensive loss attributable to common stockholders of $0.6 million or $0.02 per weighted average diluted share.
Company Guidance
During the Cherry Hill Mortgage Investment Corporation's Second Quarter 2025 Earnings Call, management discussed several key financial metrics and forward-looking statements. The company reported a GAAP net loss applicable to common stockholders of $0.03 per diluted share and a book value per common share of $3.34, down from $3.58 at the end of the previous quarter. The net asset value (NAV) was down approximately $6.2 million, or 2.7%, from March 31. Financial leverage remained steady at 5.3x, while $9 million was raised through the common ATM program, leaving $58 million of unrestricted cash at quarter-end. The MSR portfolio had a UPB of $16.6 billion with a market value of approximately $225 million, representing 43% of equity capital, while the RMBS portfolio represented 36% of equity capital. The net CPR for the MSR portfolio averaged approximately 6%, with RMBS prepayment speeds at 6.1 CPR. The company also declared a $0.15 dividend per common share and plans to maintain a prudent leverage strategy while contemplating a risk-on approach as the economic environment stabilizes.Cherry Hill Mortgage Financial Statement Overview
Summary
Cherry Hill Mortgage presents a mixed financial picture. The company's income statement shows volatility with negative revenue figures and operational inefficiencies. The balance sheet highlights leverage concerns with high debt levels. Cash flow challenges persist, with negative free cash flow impacting liquidity. The company needs to stabilize its revenue stream and improve operational efficiency to strengthen its financial health.Income Statement
Cherry Hill Mortgage's income statement shows significant volatility and negative revenue figures in recent years. The company's revenue growth rate is erratic, with a significant decline in total revenue from previous years. Although there's a positive net income in 2024, other profitability metrics like gross profit margin and EBIT margin are negative, indicating operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reflects a moderate financial position with a high debt-to-equity ratio, suggesting potential leverage risks. The equity ratio shows a moderate level of equity financing. Return on equity is positive for 2024, indicating some profitability, but the overall leverage remains a concern.50
Neutral
Cash Flow
Cash flow analysis reveals inconsistent operating cash flows with negative free cash flow in 2024, highlighting cash management challenges. The free cash flow to net income ratio is negative, indicating that net income is not translating into free cash flow, which could affect liquidity and operational flexibility.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 76.59M | 34.58M | -9.95M | 40.19M | 60.32M | 82.84M |
| Gross Profit | 45.18M | 34.58M | -21.20M | 40.19M | 28.14M | 60.20M |
| EBITDA | 34.29M | 72.08M | 16.69M | -450.00K | 19.06M | -49.16M |
| Net Income | -5.95M | 11.97M | -34.79M | 21.74M | 12.28M | -52.24M |
Balance Sheet | ||||||
| Total Assets | 1.49B | 1.49B | 1.39B | 1.41B | 1.30B | 1.59B |
| Cash, Cash Equivalents and Short-Term Investments | 58.04M | 70.76M | 69.33M | 65.55M | 76.78M | 130.22M |
| Total Debt | 149.38M | 1.23B | 1.09B | 1.03B | 1.01B | 1.27B |
| Total Liabilities | 1.26B | 1.26B | 1.13B | 1.14B | 1.02B | 1.28B |
| Stockholders Equity | 229.89M | 230.34M | 255.48M | 262.04M | 275.86M | 310.16M |
Cash Flow | ||||||
| Free Cash Flow | 23.44M | -4.69M | 40.66M | 21.88M | -7.37M | 8.24M |
| Operating Cash Flow | 23.43M | -4.69M | 40.66M | 59.91M | 48.01M | 61.20M |
| Investing Cash Flow | -70.11M | -141.33M | -104.05M | -128.20M | 166.52M | 1.26B |
| Financing Cash Flow | 56.14M | 147.46M | 67.17M | 57.07M | -267.97M | -1.28B |
Cherry Hill Mortgage Technical Analysis
Negative
2.44
Price Trends
2.67
Negative
2.68
Negative
2.70
Negative
Market Momentum
-0.09
Positive
36.09
Neutral
3.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHMI, the sentiment is Negative. The current price of 2.44 is below the 20-day moving average (MA) of 2.59, below the 50-day MA of 2.67, and below the 200-day MA of 2.70, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 36.09 is Neutral, neither overbought nor oversold. The STOCH value of 3.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $63.60M | 11.43 | 0.01% | 8.27% | -7.13% | -3.24% | |
62 Neutral | $105.21M | 11.12 | 9.52% | 17.41% | -24.12% | -47.91% | |
59 Neutral | $154.84M | -934.98 | 6.66% | ― | -16.01% | -98.23% | |
49 Neutral | $87.95M | 43.78 | -2.56% | 22.54% | -2.02% | -20.61% | |
49 Neutral | $142.18M | -1.41 | ― | 6.67% | -29.55% | 42.09% | |
47 Neutral | $54.44M | -1.26 | ― | 17.39% | -61.14% | -1562.60% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
CHMI
Cherry Hill Mortgage
2.44
-0.39
-13.78%
LOAN
Manhattan Bridge Capital
5.56
0.41
7.96%
ACR
ACRES Commercial Realty
20.85
5.07
32.13%
LFT
Lument Finance Trust
2.01
-0.13
-6.07%
SACH
Sachem Capital
1.15
-0.95
-45.24%
GPMT
Granite Point Mortgage
3.00
0.23
8.30%
Cherry Hill Mortgage Corporate Events
Executive/Board Changes
Cherry Hill Mortgage Appoints New CFO and Treasurer
Neutral
Aug 25, 2025
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.
Business Operations and StrategyExecutive/Board Changes
Cherry Hill Mortgage Appoints New General Counsel
Neutral
Jul 29, 2025
On July 28, 2025, Cherry Hill Mortgage Investment Corporation appointed Susan Healey as General Counsel, effective July 29, 2025. Ms. Healey, previously with NorthMark Strategies, will receive a base salary of $500,000 annually until the end of 2026, along with a signing bonus and potential bonuses contingent on her continued employment. This appointment is part of the company’s strategic leadership enhancements, potentially impacting its operational efficiency and stakeholder confidence.
The most recent analyst rating on (CHMI) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Cherry Hill Mortgage stock, see the CHMI Stock Forecast page.
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.