Cherry Hill Mortgage Investment (CHMI)
NYSE:CHMI
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Cherry Hill Mortgage
(NYSE:CHMI)
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Rating:51Neutral
Price Target:
$2.50
▲(5.04% Upside)
Action:ReiteratedDate:03/31/26
The score is held back primarily by weak cash-flow quality and historically volatile results, alongside bearish technicals (sub-40 RSI and trading below key moving averages). Offsetting factors are a very high dividend yield and a cautiously positive earnings update with improving book value, strong liquidity, and prudent leverage, though mortgage/prepayment and mark-to-market risks remain meaningful.
Positive Factors
Strong liquidity and conservative leverage
Having $55M of unrestricted cash and a 5.4x leverage posture gives CHMI durable buffer against funding stress and market dislocations. This liquidity supports dividend coverage, opportunistic purchases and reduces refinancing pressure, improving capital flexibility over coming quarters.
Negative Factors
Weak operating and free cash flow
Negative operating and free cash flow across two recent years indicates an earnings-quality mismatch and weaker cash conversion. This reduces the firm’s ability to fund dividends or growth internally, raising reliance on external financing and elevating liquidity and funding risk over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and conservative leverage
Having $55M of unrestricted cash and a 5.4x leverage posture gives CHMI durable buffer against funding stress and market dislocations. This liquidity supports dividend coverage, opportunistic purchases and reduces refinancing pressure, improving capital flexibility over coming quarters.
Read all positive factors
Cherry Hill Mortgage (CHMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$96.26M
Dividend Yield21.65%
Average Volume (3M)229.85K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth22.14%
EPS GrowthN/A
CountryUS
Employees12
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.11
Shares Outstanding36,739,536
10 Day Avg. Volume251,605
30 Day Avg. Volume229,852
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)-0.73
Price to Sales (P/S)-1.63
P/FCF Ratio36.57
Enterprise Value/Market Cap13.82
Enterprise Value/Revenue32.97
Enterprise Value/Gross Profit39.57
Enterprise Value/Ebitda34.77
Forecast
1Y Price Target
$3.00Price Target Upside26.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.54
Revenue Forecast (FY)$44.90M
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-back...
How the Company Makes Money
CHMI primarily makes money from the spread-based and fee-related cash flows generated by a leveraged portfolio of residential mortgage assets. Key revenue sources include: (1) Net interest income from RMBS: CHMI earns interest and other yield on i...
Cherry Hill Mortgage Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive operating quarter driven by tighter mortgage spreads, a steeper yield curve, positive portfolio positioning and improvements in book value, liquidity and profitability metrics (GAAP net income, comprehensive income and EAD). Management emphasized prudent leverage and proactive hedging while highlighting a strategic growth investment (Real Genius). Offsetting factors included a near-term decline in RMBS net interest spread, rising RMBS prepayment speeds, derivative mark-to-market exposure (no hedge accounting), concentration in RMBS/MSR assets, and a softer market tone in early 2026 that adds volatility and risk to near-term results. On balance, the positives around earnings, book value growth, liquidity and portfolio performance were stronger than the listed challenges, though management remains appropriately cautious about market and prepayment risks.Positive Updates
GAAP Net Income and EPS
GAAP net income applicable to common stockholders of $5.3 million, or $0.14 per diluted share for Q4 2025; comprehensive income of $6.5 million, or $0.18 per diluted share.
Negative Updates
RMBS Net Interest Spread Decline
RMBS portfolio net interest spread was 2.52% for the quarter, lower than the prior quarter due to a reduction in dollar roll income and less interest earned on payer swaps; management expects dollar roll income to improve in Q1 but acknowledged a near-term decline.
Read all updates
Q4-2025 Updates
Positive
Negative
GAAP Net Income and EPS
GAAP net income applicable to common stockholders of $5.3 million, or $0.14 per diluted share for Q4 2025; comprehensive income of $6.5 million, or $0.18 per diluted share.
Read all positive updates
Company Guidance
Management's guidance emphasized expecting potential additional Fed cuts later in 2026 and that lower mortgage rates could accelerate growth at Real Genius; they project a relatively low MSR net CPR in the near term (Q4 net CPR ~5.1% with recapture de minimis) and expect RMBS prepayments (Q4 CPR 8.5% vs 6.1% prior) could rise if rates fall (the refinanceable universe is ~19% today and would increase to ~30% at a 5.5% mortgage rate, at which point specified‑pool speeds could reach ~20% CPR and TBAs could be in the 30s–40s); they also expect RMBS net interest spread (2.52% in Q4) to rebound in Q1 as dollar‑roll income improves, plan to increase use of ARRIS SOFR futures (current hedge notional ≈ $422M), and will continue seeking accretive investments while maintaining prudent leverage (5.4x) and liquidity ($55M unrestricted cash); reported quarter metrics included MSR UPB $15.9B (market value ≈ $215M, ~40% of equity), RMBS ≈ $805M (~40% of equity; ≈79% of investable assets ex‑cash), Q4 GAAP net income $5.3M ($0.14/diluted share), comprehensive income $6.5M ($0.18/share), EAD $3.9M ($0.11/share), book value $3.44 (from $3.36), operating expenses $3.3M, and a declared $0.10 common dividend.Cherry Hill Mortgage Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 105.39M | 34.58M | -21.20M | 40.19M | 28.14M |
| Gross Profit | 96.11M | 34.58M | -21.20M | 40.19M | 28.14M |
| EBITDA | 58.92M | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 6.83M | 11.97M | -34.79M | 21.74M | 12.28M |
Balance Sheet | |||||
| Total Assets | 1.54B | 1.49B | 1.39B | 1.41B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 54.95M | 46.31M | 52.89M | 173.58M | 124.52M |
| Total Debt | 1.29B | 151.23M | 169.31M | 183.89M | 145.27M |
| Total Liabilities | 1.30B | 1.26B | 1.13B | 1.14B | 1.02B |
| Stockholders Equity | 236.04M | 230.34M | 255.48M | 262.04M | 275.87M |
Cash Flow | |||||
| Free Cash Flow | -4.69M | -4.69M | 40.66M | 21.88M | -7.37M |
| Operating Cash Flow | -4.69M | -4.69M | 40.66M | 59.91M | 48.01M |
| Investing Cash Flow | -141.33M | -141.33M | -104.05M | -128.20M | 166.52M |
| Financing Cash Flow | 147.46M | 147.46M | 67.17M | 57.07M | -267.97M |
Cherry Hill Mortgage Technical Analysis
Positive
2.38
Price Trends
2.54
Positive
2.46
Positive
2.42
Positive
Market Momentum
<0.01
Negative
55.75
Neutral
48.46
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 2.38 is below the 20-day moving average (MA) of 2.57, below the 50-day MA of 2.54, and below the 200-day MA of 2.42, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.75 is Neutral, neither overbought nor oversold. The STOCH value of 48.46 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 36 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $51.32M | 10.41 | 11.81% | 9.28% | -8.80% | -5.99% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
58 Neutral | $136.92M | 7.14 | 4.99% | ― | -18.37% | 18.80% | |
55 Neutral | $49.89M | 7.73 | 3.56% | 19.80% | -63.70% | -325.57% | |
51 Neutral | $96.26M | -25.12 | 2.95% | 21.65% | 22.14% | ― | |
46 Neutral | $66.02M | ― | -1.20% | 23.03% | -31.69% | -72.10% | |
45 Neutral | $68.02M | -2.79 | -7.12% | 7.97% | -28.13% | 62.49% |
* Real Estate Sector Average
CHMI
Cherry Hill Mortgage
2.62
0.55
26.63%
LOAN
Manhattan Bridge Capital
4.49
-0.01
-0.29%
ACR
ACRES Commercial Realty
19.20
1.55
8.78%
LFT
Lument Finance Trust
1.26
-0.84
-39.86%
SACH
Sachem Capital
1.04
0.20
23.52%
GPMT
Granite Point Mortgage
1.43
-0.24
-14.17%
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.