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Chimera Investment Corp. (CIM)
NYSE:CIM
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Chimera Investment
(NYSE:CIM)
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Rating:50Neutral
Price Target:
$13.00
â–¼(-0.99% Downside)
The score is held back primarily by weaker financial quality (high leverage and negative TTM operating/free cash flow) despite current profitability. Offsetting factors include constructive acquisition-driven guidance and a high dividend yield, while technicals are broadly neutral with only modest positive momentum.
Positive Factors
Strategic Acquisitions
The acquisition of Palisades Group expands Chimera's capabilities in residential real estate credit, potentially increasing fee-based income and diversifying revenue streams.
Dividend Growth
The increase in dividends reflects Chimera's strong cash flow and commitment to shareholder returns, enhancing investor confidence and long-term investment appeal.
Positive Economic Return
A positive economic return indicates effective portfolio management and strategic investments, contributing to sustainable growth and shareholder value.
Negative Factors
High Leverage
High leverage can increase financial risk, limit flexibility, and strain cash flows, potentially affecting long-term stability and growth.
Housing Market Challenges
Declining home sales may impact Chimera's mortgage-backed securities portfolio, reducing income and affecting overall financial performance.
Leadership Changes
Leadership changes can introduce uncertainty and disrupt strategic continuity, potentially impacting decision-making and company performance.
Chimera Investment (CIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.09B
Dividend Yield11.4%
Average Volume (3M)758.99K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth9.46%
EPS Growth-111.44%
CountryUS
Employees77
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.37
Shares Outstanding83,151,405
10 Day Avg. Volume816,407
30 Day Avg. Volume758,990
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.45
Price to Sales (P/S)4.40
P/FCF Ratio5.51
Enterprise Value/Market Cap11.81
Enterprise Value/Revenue72.23
Enterprise Value/Gross Profit72.23
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.50Price Target Upside10.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Chimera Investment Business Overview & Revenue Model
Company DescriptionChimera 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 residential mortgage-backed securities, agency mortgage-backed securities secured by pools of residential, commercial mortgage loans, and other real estate related securities. It has elected to be taxed as a REIT. In addition, the company invests in investment, non-investment grade, and non-rated classes. The company was incorporated in 2007 and is based in New York, New York.
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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant strategic advancements through the acquisition of HomeXpress, which is expected to positively impact earnings and diversification. However, the quarter was marked by a GAAP net loss, a decline in book value, and increased expenses. The positive impact of the acquisition and strategic repositioning efforts somewhat balances the current financial challenges.Q3-2025 Updates
Positive Updates
Acquisition of HomeXpress
Chimera Investment Corporation completed the acquisition of HomeXpress for $267 million, which is expected to be accretive to earnings and add a new revenue stream. The acquisition is anticipated to bring greater diversification and more recurring income.
Increased Origination Volume
HomeXpress originated $2.4 billion by UPB through September 30, marking a 36% year-over-year increase. For Q4, they expect around $1 billion in originations with an annualized return on equity of 19% to 23%.
Strategic Portfolio Repositioning
Chimera strategically repositioned its portfolio, reducing its residential credit allocation to below 70% and increasing Agency MBS to about 17%, enhancing earnings and diversification.
Liquidity Management and Strategic Developments
The company ended the quarter with $752 million in total cash and unencumbered assets, up from $561 million at the end of the second quarter, achieved through strategic asset sales and issuing senior unsecured notes.
Negative Updates
GAAP Net Loss
Chimera reported a GAAP net loss of $22 million or $0.27 per share for the third quarter of 2025. The GAAP economic return on book value was negative 1.4% for the quarter.
Book Value Decline
Book value declined approximately 3.2% during the quarter, primarily due to tighter non-Agency RMBS spreads and the rally in short-term rates.
Increased Compensation and Transaction Expenses
Compensation, general, administrative, and servicing expenses increased by $2 million due to onetime severance payments, and transaction expenses were higher by $10 million due to the HomeXpress acquisition.
Company Guidance
During Chimera Investment Corporation's third-quarter earnings call for 2025, the management provided guidance on several key metrics, emphasizing the strategic acquisition of HomeXpress. They reported HomeXpress originated $2.4 billion by UPB through September 30, marking a 36% year-over-year increase. For Q4 2025, they anticipate around $1 billion in originations, translating into expected pretax earnings of $15 million to $18 million and after-tax earnings of $13 million to $15 million. Looking ahead to 2026, Chimera projects $4 billion to $4.4 billion in originations, with pretax earnings ranging from $62 million to $80 million and after-tax earnings between $53 million and $68 million, after the application of net operating losses. The expected annualized return on equity for 2025 is between 19% and 23%, and for 2026, it is projected to be 20% to 25%. The acquisition is viewed as accretive to earnings, with potential benefits including new revenue streams, greater diversification, and enhanced dividend-paying ability.Chimera Investment Financial Statement Overview
Summary
Overall fundamentals are mixed: profitability returned (TTM net income $55.7M, ~19.8% net margin) but TTM revenue fell ~40% and earnings have been volatile. Leverage is high (debt-to-equity ~4.0x with debt ~$12.2B), and the largest near-term concern is the swing to negative TTM operating/free cash flow (about -$58.2M).Income Statement
Results are profitable in the latest period, with TTM (Trailing-Twelve-Months) net income of $55.7M and a ~19.8% net margin, but revenue fell sharply (about -40% TTM) versus the prior year. Profitability has also been volatile over the cycle (notably a large loss in 2022), which lowers confidence in the earnings run-rate despite strong reported margins in most years.Balance Sheet
The balance sheet reflects high leverage typical of mortgage REITs, with annual debt-to-equity around ~4.0x in 2023–2024 and debt rising to ~$12.2B in the latest period. Equity is relatively stable (~$2.6B), but returns on equity have moderated (about ~2.1% TTM vs ~7.0% in 2024) and the combination of sizable debt and lower current returns increases sensitivity to funding costs and asset marks.Cash Flow
Cash generation weakened meaningfully: operating cash flow and free cash flow are negative in TTM (Trailing-Twelve-Months) at about -$58.2M, with a steep decline versus the prior period. While 2023–2024 showed positive operating cash flow, the recent swing to cash burn is a key risk signal, especially alongside lower current profitability.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 177.35M | 257.93M | 204.77M | -415.21M | 1.06B | 226.40M |
| Gross Profit | 177.35M | 257.93M | 204.77M | -415.21M | 1.06B | 226.40M |
| EBITDA | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 55.66M | 176.06M | 126.10M | -513.07M | 670.11M | 88.85M |
Balance Sheet | ||||||
| Total Assets | 15.12B | 13.12B | 12.93B | 13.40B | 15.41B | 17.52B |
| Cash, Cash Equivalents and Short-Term Investments | 493.59M | 84.11M | 221.68M | 268.70M | 385.74M | 269.09M |
| Total Debt | 12.22B | 10.01B | 10.11B | 10.61B | 11.08B | 13.51B |
| Total Liabilities | 12.54B | 10.59B | 10.37B | 10.74B | 11.67B | 13.74B |
| Stockholders Equity | 2.57B | 2.53B | 2.56B | 2.67B | 3.74B | 3.78B |
Cash Flow | ||||||
| Free Cash Flow | -58.16M | 205.67M | 213.27M | 325.72M | 519.18M | 257.90M |
| Operating Cash Flow | -58.16M | 205.67M | 213.27M | 325.72M | 519.18M | 257.90M |
| Investing Cash Flow | -630.36M | 178.22M | 551.75M | 509.84M | 2.55B | 8.33B |
| Financing Cash Flow | 1.08B | -521.58M | -807.94M | -956.70M | -2.95B | -8.43B |
Chimera Investment Technical Analysis
Positive
13.13
Price Trends
12.59
Positive
12.98
Positive
12.78
Positive
Market Momentum
0.05
Negative
58.98
Neutral
83.48
Negative
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 13.13 is above the 20-day moving average (MA) of 12.78, above the 50-day MA of 12.59, and above the 200-day MA of 12.78, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.98 is Neutral, neither overbought nor oversold. The STOCH value of 83.48 is Negative, 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 62 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 | $1.15B | 15.68 | 7.02% | 20.03% | 72.30% | -54.02% | |
61 Neutral | $990.28M | 11.39 | 6.90% | 14.90% | 5.52% | -47.72% | |
61 Neutral | $1.14B | 14.27 | 6.37% | 12.69% | -15.48% | -36.45% | |
60 Neutral | $1.53B | 10.40 | 9.23% | 11.37% | 70.94% | 2.95% | |
53 Neutral | $1.27B | -4.93 | -9.69% | 14.29% | 22.48% | 50.49% | |
50 Neutral | $1.09B | -32.16 | 2.10% | 11.40% | 9.46% | -111.44% |
* Real Estate Sector Average
CIM
Chimera Investment
13.13
0.25
1.94%
EFC
Ellington Financial
13.73
2.78
25.39%
MFA
MFA Financial
9.69
0.87
9.86%
TWO
Two Harbors
12.28
2.41
24.39%
PMT
PennyMac Mortgage
13.08
2.29
21.20%
ORC
Orchid Island Capital
7.76
1.31
20.31%
Chimera Investment Corporate Events
Dividends
Chimera Investment Declares Fourth-Quarter 2025 Cash Dividend
Positive
Dec 18, 2025
On December 18, 2025, Chimera Investment Corporation announced that its board of directors had declared a fourth-quarter 2025 cash dividend of $0.37 per share of common stock, reinforcing its ongoing capital-return strategy to shareholders. The dividend is scheduled to be paid on January 30, 2026, to common stockholders of record as of December 31, 2025, with the same date serving as the ex-dividend date, signaling continued confidence in the company’s earnings capacity and cash flow generation from its diversified mortgage-focused investment portfolio.
The most recent analyst rating on (CIM) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Chimera Investment stock, see the CIM Stock Forecast page.
Dividends
Chimera Investment Declares Q4 Dividends for Preferred Stock
Positive
Nov 5, 2025
On November 5, 2025, Chimera Investment Corporation announced the declaration of its fourth quarter dividends for its preferred stock series. The dividends, payable on December 30, 2025, include $0.50 per share for Series A, $0.6274 per share for Series B, $0.5681 per share for Series C, and $0.6083 per share for Series D. This announcement reflects Chimera’s ongoing commitment to providing returns to its shareholders and may impact its financial positioning and stakeholder interests.
The most recent analyst rating on (CIM) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Chimera Investment stock, see the CIM Stock Forecast page.
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.