Chimera Investment (CIM)
NYSE:CIM
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Chimera Investment
(NYSE:CIM)
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Rating:56Neutral
Price Target:
$14.00
â–²(2.19% Upside)
Action:Reiterated
Date:05/10/26
The score is held back primarily by weaker financial quality (negative operating/free cash flow, high leverage, and sharply lower profitability/ROE). Offsetting this are improving technical trend signals, a very high dividend yield, and an earnings call that emphasized dividend support and strategic progress (liquidity/diversification), despite near-term GAAP/book value volatility.
Positive Factors
Portfolio diversification toward liquidity and agency MBS
Management’s deliberate shift into more liquid agency MBS and a lower concentration in credit reduces structural concentration risk and improves funding flexibility. Agency holdings are easier to finance or sell, supporting more stable distributable income and lower execution risk across 2–6 months.
Negative Factors
Elevated leverage and debt dependence
Very high leverage meaningfully limits financial flexibility and magnifies losses from spread widening or funding cost increases. With most assets debt‑funded, adverse credit marks or higher borrowing costs can quickly erode distributable income and strain liquidity over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio diversification toward liquidity and agency MBS
Management’s deliberate shift into more liquid agency MBS and a lower concentration in credit reduces structural concentration risk and improves funding flexibility. Agency holdings are easier to finance or sell, supporting more stable distributable income and lower execution risk across 2–6 months.
Read all positive factors
Chimera Investment (CIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.10B
Dividend Yield11.4%
Average Volume (3M)654.13K
Price to Earnings (P/E)―
Beta (1Y)0.77
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. Volume606,866
30 Day Avg. Volume654,125
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 Cap12.16
Enterprise Value/Revenue18.84
Enterprise Value/Gross Profit20.53
Enterprise Value/Ebitda30.42
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.11
Revenue Forecast (FY)$414.66M
Chimera Investment Business Overview & Revenue Model
Company Description
Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency and non-agency re...
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:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong execution on a multi‑year transformation: successful acquisition and integration of Home Express, meaningful capital generation (> $600M) and redeployment, AUM growth (+~18%), a clear shift toward a more liquid, diversified portfolio, a 22% dividend increase, and improving distributable returns (EAD ROEs up ~400 bps). Offsetting these positives were near‑term accounting and liquidity impacts: a modest Q4 GAAP net income ($7M), a decline in GAAP book value (–~2.7% in Q4) driven by mark‑to‑market increases in securitized debt, reduced cash balances after the acquisition, higher operating and transaction expenses, and quarter‑to‑quarter variability from non‑recurring items. Overall, management portrayed durable progress toward a hybrid REIT operating model with improving earnings power and liquidity tools, while noting short‑term volatility and accounting effects that depress GAAP metrics.Positive Updates
Dividend Increase
Board raised the quarterly dividend to $0.45 for Q1 2026, a 22% increase quarter-over-quarter, and expects to maintain that level for the remainder of the year.
Negative Updates
Quarterly GAAP Earnings Weakness and Book Value Pressure
GAAP net income for Q4 was only $7M ($0.08 per share); GAAP book value ended Q4 at $19.70 per share. The company reported a negative 0.9% economic return on GAAP book value for Q4 and cited an overall book value decline of ~2.7% in the quarter driven largely by increases in the fair value of securitized debt and acquisition activity.
Read all updates
Q4-2025 Updates
Positive
Negative
Dividend Increase
Board raised the quarterly dividend to $0.45 for Q1 2026, a 22% increase quarter-over-quarter, and expects to maintain that level for the remainder of the year.
Read all positive updates
Company Guidance
Management guided that the board has declared a Q1‑2026 dividend of $0.45 per share (a 22% quarter‑over‑quarter increase) and expects to maintain that level for the remainder of the year while pursuing 2026 priorities to diversify the portfolio, expand liquidity, and grow fee‑based income—deploying capital into Agency MBS, MSRs and sponsored securitizations backed by Home Express and continuing securitization redemptions and selective divestitures. As of Q4 the company reported $528M of cash/unencumbered assets, $6.0B of consolidated secured financing (including $802M warehouse and $5.2B for the investment portfolio, $3.3B of which finances agency RMBS), total leverage 5.1x (Rico 2.4x), an agency portfolio at ~7.5x leverage generating low‑to‑mid double‑digit run‑rate ROEs, and management noted >$600M of redeployable capital in 2025 (including ~$485M from asset sales/collapsed securitizations and ~$116M from unsecured notes). The guidance is supported by Q4 operating/earnings metrics—economic NII $65M (yield on interest‑earning assets 5.9%, cost of funds 4.5%, NII spread 1.4%), Q4 EAD $45M ($0.53) and FY EAD $141M ($1.68) with EAD ROAE ~11% (EAD ROTA 11.9%), GAAP book value $19.70, FY GAAP net income $144M ($1.72)—and by Home Express contributions (Q4 originations $1.04B; FY $3.4B; gain‑on‑sale premium 358 bps; Q4 EBITDA $11M; annualized EBITDA ROE 16.2%; GAAP cost to originate 201 bps; debt margin 111 bps; $1.35B warehouse), with market context of non‑QM AAA spreads tightening ~20–25 bps YTD and mortgage rates near 6.15%.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
Neutral
13.70
Price Trends
13.11
Negative
12.83
Positive
12.52
Positive
Market Momentum
-0.02
Positive
40.21
Neutral
11.89
Positive
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 13.7 is above the 20-day moving average (MA) of 13.49, above the 50-day MA of 13.11, and above the 200-day MA of 12.52, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 11.89 is Positive, 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 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.67B | 3.42 | 11.88% | 11.37% | 33.43% | 19.55% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
56 Neutral | $1.10B | -5.98 | 0.75% | 11.40% | 10.27% | -151.66% | |
56 Neutral | $958.05M | -252.36 | 7.43% | 14.90% | 2.05% | -11.87% | |
56 Neutral | $1.31B | 9.57 | -19.11% | 14.29% | -6.44% | -1044.78% | |
54 Neutral | $908.65M | 10.31 | 7.62% | 12.69% | 23.64% | 24.40% | |
54 Neutral | $1.36B | -16.67 | 10.24% | 20.03% | 81.33% | 86.84% |
* Real Estate Sector Average
CIM
Chimera Investment
13.25
1.60
13.70%
EFC
Ellington Financial
13.50
2.32
20.76%
MFA
MFA Financial
9.51
1.48
18.49%
TWO
Two Harbors
12.51
2.60
26.20%
PMT
PennyMac Mortgage
10.50
-0.40
-3.64%
ORC
Orchid Island Capital
6.78
1.12
19.77%
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...
Business Operations and StrategyRegulatory Filings and Compliance
Chimera Investment Highlights Strategy in SFVegas Investor Presentation
Neutral
Feb 20, 2026
On February 20, 2026, Chimera Investment Corporation released an investor presentation tied to its participation in the SFVegas Conference, making the materials available through the presentations section of its corporate website. The deck, furnis...
Dividends
Chimera Investment Boosts Common and Preferred Stock Dividends
Positive
Feb 11, 2026
On February 11, 2026, Chimera Investment Corporation’s board declared a first-quarter 2026 cash dividend of $0.45 per common share, raising the payout from the fourth quarter 2025 level of $0.37. The common dividend will be paid on April 30,...
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.