Chimera Investment (CIM)
NYSE:CIM
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Chimera Investment
(NYSE:CIM)
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Rating:51Neutral
Price Target:
$13.50
â–¼(-1.46% Downside)
Action:Reiterated
Date:06/01/26
The score is held down primarily by weaker financial quality—negative operating/free cash flow, sharply reduced profitability, and high leverage—despite constructive technical momentum and a supportive income profile. The earnings call adds moderate positives (EAD/dividend coverage, liquidity and portfolio actions), but GAAP/book value pressure and credit/leverage risks temper the outlook.
Positive Factors
Origination growth / fee diversification
Rapid HomeXpress origination scale and strong origination economics (EBITDA ROE 16.8%, net origination margin 114bps) provide durable, fee-based earnings diversification. Growing warehouse capacity supports repeatable originations that reduce sole reliance on interest spread income and add structural cash generation.
Negative Factors
High and rising leverage
Substantially elevated leverage (5x+ debt/equity and 5.2:1 reported leverage) materially limits balance-sheet flexibility. In a business financed by borrowed funds, high leverage magnifies sensitivity to fund cost moves, spread widening, and credit marks, increasing refinancing and operational risk over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Origination growth / fee diversification
Rapid HomeXpress origination scale and strong origination economics (EBITDA ROE 16.8%, net origination margin 114bps) provide durable, fee-based earnings diversification. Growing warehouse capacity supports repeatable originations that reduce sole reliance on interest spread income and add structural cash generation.
Read all positive factors
Chimera Investment (CIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.12B
Dividend Yield11.4%
Average Volume (3M)576.89K
Price to Earnings (P/E)58.0
Beta (1Y)0.78
Revenue Growth10.27%
EPS Growth-151.66%
CountryUS
Employees77
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-0.53
Shares Outstanding83,646,020
10 Day Avg. Volume577,416
30 Day Avg. Volume576,890
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.40
Price to Sales (P/S)1.24
P/FCF Ratio-4.10
Enterprise Value/Market Cap11.97
Enterprise Value/Revenue18.88
Enterprise Value/Gross Profit20.58
Enterprise Value/Ebitda30.49
Forecast
1Y Price Target
$14.00Price Target Upside2.19% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.15
Revenue Forecast (FY)$412.79M
Chimera Investment Business Overview & Revenue Model
Company Description
Chimera Investment Corporation (CIM) operates as a U.S.-based real estate investment trust (REIT), having elected to be taxed under this specific structure. Through its various subsidiaries, the company primarily focuses on building a diverse port...
How the Company Makes Money
Chimera primarily makes money by earning net interest income and, to a lesser extent, by realizing gains (or losses) on its mortgage-related investments.
1) Net interest income (core engine): Chimera invests in portfolios of residential mortgage ...
Chimera Investment Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a largely constructive operational and strategic picture: strong HomeXpress origination growth and profitability, meaningful portfolio repositioning that released ~$195M of capital and increased Agency RMBS allocation, improved economic earnings metrics (EAD growth and coverage), and substantial liquidity. Offsetting these positives were a GAAP net loss, a 6.9% decline in GAAP book value per share (largely driven by securitization redemptions and accounting mechanics), higher expenses, and some uptick in delinquencies and leverage. Management emphasized that many adverse GAAP movements were strategic and non-recurring and highlighted potential for ~$15M of incremental annual earnings from redeployed capital, supporting a constructive near- to medium-term outlook.Positive Updates
HomeXpress Origination Growth
HomeXpress originated $884 million in Q1 2026, a 39% increase year-over-year, with EBITDA of $11.4 million and an annualized EBITDA ROE of 16.8%. Net origination margin was 114 bps and average loan size rose from $424k in March to $451k in April (quarter average ~$410k).
Negative Updates
GAAP Net Loss and Book Value Decline
GAAP net loss for Q1 2026 was approximately $65 million. GAAP book value per share declined 6.9% to $18.34. Excluding the impact of the securitization redemptions and related loan sales, book value was down ~2.5%.
Read all updates
Q1-2026 Updates
Positive
Negative
HomeXpress Origination Growth
HomeXpress originated $884 million in Q1 2026, a 39% increase year-over-year, with EBITDA of $11.4 million and an annualized EBITDA ROE of 16.8%. Net origination margin was 114 bps and average loan size rose from $424k in March to $451k in April (quarter average ~$410k).
Read all positive updates
Company Guidance
Management's guidance was cautious but constructive: they expect continued political, geopolitical and market uncertainty but plan to "play offense"—grow and diversify the portfolio, expand originations, build fee-based income and pursue acquisitions—backed by ample liquidity (roughly $675M of cash and unencumbered assets, including about $476M of cash and ~$200M of unencumbered assets, and nearly $500M of equity allocated to Agency RMBS), balance-sheet flexibility (total leverage 5.2:1, recourse leverage 2.9:1) and a planned CIM HomeX securitization in late Q2/early Q3. They reiterated dividend coverage (Q1 EAD $0.54 vs. $0.45 dividend, ~1.2x coverage), noted GAAP book value of $18.34 (down 6.9% q/q; -2.5% ex-redeems), and quantified the portfolio actions that released ~$195M of capital (sale of $1.2B of loans, ~$287M retained) with a breakeven ROE just under 8% and estimated potential to add ~$15M of annual earnings, while underscoring HomeXpress contributions (Q1 originations $884M, EBITDA $11.4M, EBITDA ROE 16.8%, net origination margin 114 bps, warehouse capacity $1.5B, avg loan ~$451k in April).Chimera Investment Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
34
Negative
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 709.46M | 820.77M | 257.93M | 204.77M | -415.21M | 1.06B |
| Gross Profit | 651.15M | 778.67M | 257.93M | 204.77M | -415.21M | 1.06B |
| EBITDA | 439.34M | 794.87M | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 19.29M | 230.50M | 176.06M | 126.10M | -513.07M | 670.11M |
Balance Sheet | ||||||
| Total Assets | 15.98B | 15.81B | 13.12B | 12.93B | 13.40B | 15.41B |
| Cash, Cash Equivalents and Short-Term Investments | 476.22M | 278.58M | 84.11M | 221.68M | 264.60M | 385.74M |
| Total Debt | 12.73B | 13.07B | 10.01B | 10.11B | 10.61B | 11.08B |
| Total Liabilities | 13.52B | 13.24B | 10.59B | 10.37B | 10.74B | 11.67B |
| Stockholders Equity | 2.46B | 2.57B | 2.53B | 2.56B | 2.67B | 3.74B |
Cash Flow | ||||||
| Free Cash Flow | -54.36M | -248.88M | 205.67M | 213.27M | 325.72M | 519.18M |
| Operating Cash Flow | -54.36M | -248.88M | 205.67M | 213.27M | 325.72M | 519.18M |
| Investing Cash Flow | -1.13B | -1.66B | 178.22M | 551.75M | 509.84M | 2.55B |
| Financing Cash Flow | 1.41B | 2.11B | -521.58M | -807.94M | -956.70M | -2.95B |
Chimera Investment Technical Analysis
Positive
13.70
Price Trends
13.35
Positive
12.99
Positive
12.59
Positive
Market Momentum
-0.02
Positive
50.93
Neutral
23.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIM, the sentiment is Positive. The current price of 13.7 is above the 20-day moving average (MA) of 13.32, above the 50-day MA of 13.35, and above the 200-day MA of 12.59, indicating a bullish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 23.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CIM.
Chimera Investment Risk Analysis
Chimera Investment disclosed 75 risk factors in its most recent earnings report. Chimera Investment 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
Chimera Investment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $1.70B | 7.75 | 11.88% | 11.37% | 33.43% | 19.55% | |
56 Neutral | $950.94M | 7.21 | 7.43% | 14.90% | 2.05% | -11.87% | |
56 Neutral | $1.30B | -3.91 | -19.11% | 14.29% | -6.44% | -1044.78% | |
54 Neutral | $881.62M | 6.16 | 7.62% | 12.69% | 23.64% | 24.40% | |
52 Neutral | $1.33B | 10.30 | 10.24% | 20.03% | 81.33% | 86.84% | |
51 Neutral | $1.12B | 58.02 | 0.75% | 11.40% | 10.27% | -151.66% |
* Real Estate Sector Average
CIM
Chimera Investment
13.38
1.06
8.61%
EFC
Ellington Financial
13.59
2.08
18.03%
MFA
MFA Financial
9.36
1.08
13.11%
TWO
Two Harbors
12.39
2.84
29.79%
PMT
PennyMac Mortgage
10.11
-1.12
-9.98%
ORC
Orchid Island Capital
6.64
0.86
14.98%
Chimera Investment Corporate Events
Dividends
Chimera Investment Declares Q2 2026 Preferred Stock Dividends
Positive
May 7, 2026
On May 7, 2026, Chimera Investment Corporation’s board declared second-quarter 2026 cash dividends on four series of preferred stock, including $0.50 per share for its 8.00% Series A Cumulative Redeemable Preferred Stock and $0.6095 per shar...
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.