Cherry Hill Mortgage (CHMI) AI Stock Analysis

• Market Cap: $85.79M
• Dividend Yield: 23.11%
• Average Volume (3M): 368.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -2.02%
• EPS Growth: -20.61%
• Country: US
• Employees: 12
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.10
• Shares Outstanding: 36,045,094
• 10 Day Avg. Volume: 361,152
• 30 Day Avg. Volume: 368,092
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 15.92
• Enterprise Value/Revenue: 17.83
• Enterprise Value/Gross Profit: 30.23
• Enterprise Value/Ebitda: 39.83
• 1Y Price Target: $2.88
• Price Target Upside: 21.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: $2.50 ▲(5.04% 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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• 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 Negative. The current price of 2.38 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.59, and below the 200-day MA of 2.72, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 44.83 is Neutral, neither overbought nor oversold. The STOCH value of 65.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$59.82M	10.89	12.68%	8.77%	-7.13%	-3.24%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ACR	58 Neutral	$143.40M	―	5.05%	―	-16.01%	-98.23%
LFT	56 Neutral	$91.60M	9.64	6.01%	19.77%	-24.12%	-47.91%
CHMI	49 Neutral	$85.79M	―	-2.56%	23.11%	-2.02%	-20.61%
GPMT	49 Neutral	$122.28M	―	-14.12%	7.27%	-29.55%	42.09%
SACH	47 Neutral	$51.60M	―	-18.82%	18.18%	-61.14%	-1562.60%

Cherry Hill Mortgage Corporate Events

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 Appoints New General Counsel

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.