Education
About Us
Working with TipRanks
Follow Us
Cherry Hill Mortgage Investment (CHMI)
NYSE:CHMI
Top Page
Cherry Hill Mortgage
(NYSE:CHMI)
Select Model
Select Model
Rating:57Neutral
Price Target:
$2.50
▲(5.04% Upside)
The score is driven primarily by improving but still volatile financial performance, supported by moderately positive technical momentum. Valuation is a notable headwind due to the very high P/E despite the outsized dividend yield, while the latest earnings call adds a modestly positive signal from stable leverage, slight book value growth, and management’s rate-environment positioning.
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
$95.16M
Dividend Yield21.65%
Average Volume (3M)201.44K
Price to Earnings (P/E)135.4
Beta (1Y)0.71
Revenue Growth22.14%
EPS GrowthN/A
CountryUS
Employees12
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.09
Shares Outstanding36,739,536
10 Day Avg. Volume207,969
30 Day Avg. Volume201,442
Financial Highlights & Ratios
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 Cap14.57
Enterprise Value/Revenue43.01
Enterprise Value/Gross Profit45.78
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.88Price Target Upside21.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Mar 10, 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
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 | 32.24M | 34.58M | -21.20M | 40.19M | 28.14M | -56.47M |
| Gross Profit | 30.29M | 34.58M | -21.20M | 40.19M | 28.14M | -56.47M |
| EBITDA | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 10.68M | 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 | 46.31M | 52.89M | 173.58M | 124.52M | 1.31B |
| Total Debt | 147.36M | 151.23M | 169.31M | 183.89M | 145.27M | 111.38M |
| Total Liabilities | 1.29B | 1.26B | 1.13B | 1.14B | 1.02B | 1.28B |
| Stockholders Equity | 233.13M | 230.34M | 255.48M | 262.04M | 275.87M | 310.17M |
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
Neutral
2.38
Price Trends
2.47
Positive
2.51
Positive
2.59
Negative
Market Momentum
0.03
Positive
51.89
Neutral
48.57
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 below the 20-day moving average (MA) of 2.62, below the 50-day MA of 2.47, and below the 200-day MA of 2.59, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 51.89 is Neutral, neither overbought nor oversold. The STOCH value of 48.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $51.75M | 9.68 | 12.23% | 9.28% | -8.80% | -5.99% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $95.16M | 135.42 | 4.55% | 21.65% | 22.14% | ― | |
53 Neutral | $75.93M | 14.99 | 4.14% | 23.03% | -31.69% | -72.10% | |
51 Neutral | $49.12M | -1.34 | -16.33% | 19.80% | -63.70% | -325.57% | |
47 Neutral | $148.63M | 20.91 | 6.58% | ― | -18.37% | 18.80% | |
46 Neutral | $105.24M | -1.51 | -9.11% | 7.97% | -28.13% | 62.49% |
* Real Estate Sector Average
CHMI
Cherry Hill Mortgage
2.60
0.15
6.12%
LOAN
Manhattan Bridge Capital
4.48
-0.79
-14.99%
ACR
ACRES Commercial Realty
20.07
2.76
15.94%
LFT
Lument Finance Trust
1.45
-0.95
-39.58%
SACH
Sachem Capital
1.05
-0.03
-2.78%
GPMT
Granite Point Mortgage
2.20
-0.42
-16.03%
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.