Education
About Us
Working with TipRanks
Follow Us
Chimera Investment Corp. (CIM)
NYSE:CIM
Top Page
Chimera Investment
(NYSE:CIM)
Rating:63Neutral
Price Target:―
Chimera Investment (CIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.05B
Dividend Yield11.25%
Average Volume (3M)575.05K
Price to Earnings (P/E)8.7
Beta (1Y)1.05
Revenue Growth7.13%
EPS Growth64.82%
CountryUS
Employees77
SectorReal Estate
Sector Strength64
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.41
Shares Outstanding80,970,690
10 Day Avg. Volume608,652
30 Day Avg. Volume575,047
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.43
Price to Sales (P/S)0.00
P/FCF Ratio5.76
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit2.86
Enterprise Value/Ebitda1.67
Forecast
1Y Price Target
$15.75Price Target Upside21.34% Upside
Rating ConsensusHold
Number of Analyst Covering4
Chimera Investment Business Overview & Revenue Model
Company DescriptionChimera Investment Corporation (CIM) is a publicly traded real estate investment trust (REIT) that primarily invests in residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and other real estate-related securities. The company is involved in the management and ownership of a diverse portfolio of financial assets, focusing on generating income and long-term value for its shareholders.
How the Company Makes MoneyChimera Investment Corporation makes money primarily through the interest income generated from its portfolio of mortgage-backed securities. The company invests in various types of mortgage assets, including agency and non-agency RMBS and CMBS, which provide returns through the collection of interest payments. Additionally, Chimera may engage in hedging activities to manage interest rate risk and enhance yield. The company also benefits from capital appreciation of its investments and may leverage its portfolio to amplify returns. Strategic partnerships and relationships with financial institutions can also play a role in optimizing asset acquisition and management, contributing to overall earnings.
Chimera Investment Financial Statement Overview
Summary
Chimera Investment demonstrates strong gross and net profit margins, despite historical volatility in income and revenue. The balance sheet reflects high leverage, presenting potential risks. Cash flows are stable, yet the company's financing activities warrant attention for future stability.Income Statement
Chimera Investment shows strong gross profit margins, with significant improvement in net income and revenue in the latest year. However, past years have shown volatile revenue and profit trends, affecting stability.65
Positive
Balance Sheet
The company has a high debt-to-equity ratio, typical for REITs, which indicates high leverage. While equity has been relatively stable, the potential risk from leverage remains substantial.55
Neutral
Cash Flow
The cash flow statement indicates consistent free cash flow with recent growth. The operating cash flow has been stable, but the reliance on financing cash flows is a potential concern.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 309.07M | 257.93M | 226.02M | 432.79M | 1.06B | 228.84M | Gross Profit |
| 309.07M | 257.93M | 193.40M | 380.64M | 990.62M | 176.30M | EBIT |
| 0.00 | 0.00 | 631.87M | -253.28M | 674.52M | 89.01M | EBITDA |
| 0.00 | 0.00 | 0.00 | -191.80M | 674.52M | 89.01M | Net Income Common Stockholders |
| 213.91M | 176.06M | 126.10M | -513.07M | 670.11M | 88.85M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 221.68M | 0.00 | 221.68M | 11.62B | 385.74M | 269.09M | Total Assets |
| 12.93B | 13.12B | 12.93B | 13.40B | 15.41B | 17.52B | Total Debt |
| 10.11B | 10.01B | 10.11B | 10.61B | 11.08B | 13.51B | Net Debt |
| 9.89B | 9.93B | 9.89B | 10.35B | 10.69B | 13.24B | Total Liabilities |
| 10.37B | 10.59B | 10.37B | 10.74B | 11.67B | 13.74B | Stockholders Equity |
| 2.56B | 2.53B | 2.56B | 2.67B | 3.74B | 3.78B |
| Cash Flow | Free Cash Flow | ||||
| 197.20M | 205.67M | 213.27M | 325.72M | 519.18M | 257.90M | Operating Cash Flow |
| 197.20M | 205.67M | 213.27M | 325.72M | 519.18M | 257.90M | Investing Cash Flow |
| -245.44M | 178.22M | 551.75M | 509.84M | 2.55B | 8.33B | Financing Cash Flow |
| -163.24M | -521.58M | -807.94M | -956.70M | -2.95B | -8.43B |
Chimera Investment Technical Analysis
Neutral
12.98
Price Trends
12.42
Positive
13.10
Negative
13.67
Negative
Market Momentum
0.35
Negative
52.70
Neutral
25.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIM, the sentiment is Neutral. The current price of 12.98 is above the 20-day moving average (MA) of 12.87, above the 50-day MA of 12.42, and below the 200-day MA of 13.67, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 52.70 is Neutral, neither overbought nor oversold. The STOCH value of 25.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CIM.
Chimera Investment Risk Analysis
Chimera Investment disclosed 60 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 3 New Risks
1.
We may change our investment strategy or asset allocation or enter other operating businesses or financing plans without stockholder consent, which may result in riskier investments or subject us to new or increased regulatory risks and have an adverse effect on our business, results of operations and financial condition. Q4, 2024
2.
Interests of holders of our securities are structurally subordinated to the liabilities and obligations of our subsidiaries and may also be adversely affected by future offerings of securities. Q4, 2024
3.
Our investment management and advisory services involve certain risks, which could adversely affect our business, financial condition and results of operations. Q4, 2024
Chimera Investment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $1.20B | 9.17 | 9.59% | 12.38% | 11.91% | 52.26% | |
63 Neutral | $1.05B | 8.70 | 8.09% | 11.25% | 7.13% | 64.82% | |
62 Neutral | $958.78M | 9.51 | 7.34% | 15.10% | 26.34% | 79.07% | |
60 Neutral | $2.76B | 10.33 | 0.49% | 8507.90% | 5.95% | -17.56% | |
60 Neutral | $1.28B | 15.48 | 6.01% | 14.18% | 73.74% | -34.10% | |
56 Neutral | $908.30M | 16.23 | 5.07% | 13.08% | -6.28% | -49.57% | |
46 Neutral | $714.43M | ― | -12.42% | 22.08% | -31.47% | -204.79% |
* Real Estate Sector Average
Performance Comparison
CIM
Chimera Investment
12.98
2.27
21.20%
DX
Dynex Capital
11.85
1.30
12.32%
EFC
Ellington Financial
12.60
1.97
18.53%
MFA
MFA Financial
9.34
0.07
0.76%
RC
Ready Capital
4.19
-3.07
-42.29%
FBRT
Franklin BSP Realty Trust
10.86
-0.29
-2.60%
Chimera Investment Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 8.08%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Chimera Investment Corporation reported strong financial results for the first quarter of 2025, showcasing significant earnings growth and successful integration of the Palisades acquisition. Strategic financial moves strengthened the company's balance sheet and liquidity. However, the call also highlighted challenges such as interest rate volatility, housing market moderation, and credit spread widening. Despite these challenges, the company's performance and strategic positioning are commendable.Q1-2025 Updates
Positive Updates
Earnings Increase and Book Value Growth
Earnings available for distribution improved by 11%, book value increased by 7.4%, and economic return was 9.2% for the first quarter of 2025.
Palisades Acquisition Success
The integration of Palisades into Chimera was seamless, with third-party loans under management increasing by 43% year-over-year, adding $1.5 billion during the first quarter to nearly $24 billion.
Strategic Financial Moves
Chimera exercised call rights on all non-Remic securitizations and issued 2 new securitizations, unlocking $187 million with a reinvestment hurdle below 6%.
Growth in Third-Party Loans Under Management
Third-party loans under management grew significantly, with the company managing nearly $37 billion in assets.
Negative Updates
Interest Rate Volatility
Interest rate volatility impacted the market, with significant fluctuations in Treasury yields and credit spreads, affecting the overall financial environment.
Housing Market Challenges
Housing conditions moderated with national home price growth at 3.9% year-over-year and existing home sales declining to a 4 million unit annualized pace, marking the slowest first quarter print since 2009.
Credit Spread Widening
Credit spreads widened across corporate and structured product markets, indicating increased risk perception and market uncertainty.
Company Guidance
During Chimera Investment Corporation's first quarter 2025 earnings call, the company provided several key metrics and insights into their financial performance and strategic activities. Earnings available for distribution increased by 11%, while the book value rose by 7.4%, resulting in an economic return of 9.2%. The company successfully integrated Palisades, boosting third-party loans under management by 43% year-over-year to nearly $24 billion. Overall, assets under management, including on-balance sheet assets, reached nearly $37 billion. Additionally, Chimera executed strategic balance sheet moves, unlocking $187 million through cash-out refinancing and acquiring $288 million in non-QM loans. The yield on average interest-earning assets stood at 5.9%, with an average cost of funds at 4.4%, resulting in a net interest spread of 1.5%. Chimera's liquidity position was supported by $697 million in total cash and unencumbered assets, and the company maintained a leverage ratio of 3.9 to 1. Looking forward, Chimera aims to diversify its portfolio, grow recurring fee income, and enhance liquidity while maintaining a strong balance sheet and adaptability in a volatile market.Chimera Investment Corporate Events
Executive/Board Changes
Chimera Investment Board Member Resigns Abruptly
Neutral
Apr 11, 2025
On April 9, 2025, Sandra Bell, an independent member of the board of directors at Chimera Investment Corporation, announced her immediate resignation. Her departure was not due to any disagreements with the company’s operations, policies, or practices. Following her resignation, the board reduced its size by one director, effective April 11, 2025.
Spark’s Take on CIM Stock
According to Spark, TipRanks’ AI Analyst, CIM is a Neutral.
Chimera Investment Corporation has a solid financial foundation, with strong profit margins and stable cash flows. However, high leverage and recent net losses present risks. The stock shows bearish technical indicators, but attractive valuation metrics, such as a low P/E ratio and high dividend yield, offer potential investment appeal. Strategic growth initiatives and positive corporate events further support a moderately positive outlook.
To see Spark’s full report on CIM stock, click here.
Executive/Board Changes
Chimera Investment Announces Officer Departure
Neutral
Apr 8, 2025
On April 2, 2025, Chimera Investment Corporation announced that Dan Thakkar will step down from his role as Chief Credit & Risk Officer, effective July 1, 2025. The departure is amicable and not due to any disagreements with the company’s operations or policies. Thakkar will receive benefits outlined in his employment agreement, including additional COBRA premium reimbursement.
Spark’s Take on CIM Stock
According to Spark, TipRanks’ AI Analyst, CIM is a Neutral.
Chimera Investment’s stock score reflects stable financial performance with risks due to high leverage and past income volatility. Technical indicators suggest potential weakness in the short term, while valuation and dividend yield provide attractive investment propositions. The recent earnings call highlights strategic growth plans that could improve future performance.
To see Spark’s full report on CIM stock, click here.
Dividends
Chimera Investment Declares Q1 2025 Cash Dividend
Positive
Mar 20, 2025
On March 20, 2025, Chimera Investment Corporation announced the declaration of its first quarter cash dividend of $0.37 per common share. The dividend is set to be paid on April 30, 2025, to common stockholders of record as of March 31, 2025. This announcement reflects Chimera’s ongoing commitment to providing returns to its shareholders and may impact its market positioning by reinforcing investor confidence.
Business Operations and Strategy
Chimera Investment Shares Insights at RBC Conference
Neutral
Mar 3, 2025
On March 3, 2025, Chimera Investment Corporation participated in the RBC Capital Markets Global Financial Institutions Conference, where it made available an investor presentation. The presentation, which was posted on the company’s website, provides insights into Chimera’s operations and strategic positioning, although it is not considered ‘filed’ for regulatory purposes.
Dividends
Chimera Investment Declares Q1 2025 Preferred Dividends
Positive
Feb 11, 2025
On February 11, 2025, Chimera Investment Corporation announced the declaration of its first quarter dividends for several series of its preferred stocks, with payments scheduled for March 31, 2025. The dividends declared include $0.50 per share for Series A, $0.6488 per share for Series B, $0.484375 per share for Series C, and $0.6231 per share for Series D. This announcement highlights Chimera’s ongoing commitment to providing returns to its preferred shareholders, signaling stability and potential attractiveness to investors seeking consistent income in the real estate investment sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.