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Cherry Hill Mortgage (CHMI)
NYSE:CHMI
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Cherry Hill Mortgage
(NYSE:CHMI)
Rating:54Neutral
Price Target:
$3.00
▲(2.04% Upside)
Cherry Hill Mortgage (CHMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$103.45M
Dividend Yield20.41%
Average Volume (3M)242.59K
Price to Earnings (P/E)43.8
Beta (1Y)1.02
Revenue Growth-2.02%
EPS Growth-20.61%
CountryUS
Employees12
SectorReal Estate
Sector Strength50
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.10
Shares Outstanding36,045,094
10 Day Avg. Volume237,107
30 Day Avg. Volume242,586
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 Cap13.20
Enterprise Value/Revenue17.83
Enterprise Value/Gross Profit30.23
Enterprise Value/Ebitda39.83
Forecast
1Y Price Target
$3.00Price Target Upside2.04% Upside
Rating ConsensusHold
Number of Analyst Covering0
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: 5.38%|
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.35
Negative
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.40
Negative
| 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
Positive
2.94
Price Trends
2.78
Positive
2.78
Positive
2.77
Positive
Market Momentum
0.05
Negative
56.19
Neutral
76.04
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 2.94 is above the 20-day moving average (MA) of 2.81, above the 50-day MA of 2.78, and above the 200-day MA of 2.77, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 76.04 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 4 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $61.31M | 11.16 | 12.68% | 8.46% | -7.13% | -3.24% | |
63 Neutral | $149.64M | 66.03 | 5.05% | ― | -16.01% | -98.23% | |
63 Neutral | $6.81B | 13.13 | -0.64% | 7.18% | 3.62% | -22.63% | |
58 Neutral | $109.92M | 11.56 | 6.01% | 17.89% | -24.12% | -47.91% | |
54 Neutral | $103.45M | 43.78 | -2.56% | 20.41% | -2.02% | -20.61% | |
49 Neutral | $132.23M | ― | -14.12% | 7.25% | -29.55% | 42.09% | |
47 Neutral | $54.44M | ― | -18.82% | 20.00% | -61.14% | -1562.60% |
* Real Estate Sector Average
Performance Comparison
CHMI
Cherry Hill Mortgage
2.94
0.05
1.73%
LOAN
Manhattan Bridge Capital
5.44
0.60
12.40%
ACR
ACRES Commercial Realty
20.23
4.50
28.61%
LFT
Lument Finance Trust
2.13
0.05
2.40%
SACH
Sachem Capital
1.15
-0.92
-44.44%
GPMT
Granite Point Mortgage
2.76
0.40
16.95%
Cherry Hill Mortgage Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
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.
Executive/Board ChangesShareholder Meetings
Cherry Hill Mortgage Elects Board at Annual Meeting
Neutral
Jun 13, 2025
On June 12, 2025, Cherry Hill Mortgage Investment Corporation held its annual stockholders meeting, where five board nominees were elected. Stockholders approved executive compensation for 2024 and decided to continue annual advisory votes on executive compensation. Ernst & Young LLP was ratified as the company’s independent auditors for 2025.
Executive/Board Changes
Cherry Hill Mortgage CFO Resignation Announced
Neutral
May 27, 2025
On May 21, 2025, Cherry Hill Mortgage Investment Corporation announced the resignation of its Chief Financial Officer, Michael A. Hutchby, effective June 22, 2025, as he leaves to pursue another professional opportunity. In response, the company appointed Apeksha Patel as the Interim Chief Financial Officer, effective the same date, leveraging her extensive experience within the company to ensure a seamless transition.
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.