Claros Mortgage Trust, Inc. (CMTG) AI Stock Analysis

• Market Cap: $417.98M
• Dividend Yield: 13.38%
• Average Volume (3M): 862.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -45.51%
• EPS Growth: -3658.39%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Mortgage
• EPS (TTM): -0.25
• Shares Outstanding: 139,792,270
• 10 Day Avg. Volume: 753,785
• 30 Day Avg. Volume: 862,007
• PEG Ratio: -0.49
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.85
• Enterprise Value/Market Cap: 8.23
• Enterprise Value/Revenue: 4.74
• Enterprise Value/Gross Profit: -41.64
• Enterprise Value/Ebitda: -40.11
• 1Y Price Target: $3.13
• Price Target Upside: 4.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: ―

Claros Mortgage Trust, Inc. faces significant financial and operational challenges, reflected in its negative net income, declining profitability margins, and bearish technical indicators. While the company's debt-free balance sheet and strong cash flow management are strengths, the negative valuation metrics and high-risk corporate events pose considerable risks. The current market sentiment, as reflected in the earnings call and corporate events, suggests a cautious outlook, with plans for liquidity enhancement as potential long-term positives.

Positive Factors

Loan Resolutions

Management expects resolutions of watchlist loans will pick up substantially in the coming quarters, which could improve financial performance.

Stock Valuation

CMTG shares are trading at 0.20x book value compared to a median P/BV of 0.81x for the peer group, suggesting potential undervaluation.

Negative Factors

Dividend Suspension

The board of directors suspended paying a cash dividend, reflecting challenges in asset resolution and potential loan losses.

Financial Performance

Claros reported a third-quarter GAAP loss of $0.40 per share and a distributable loss of $0.17 per share, indicating financial struggles.

Problem Loans

Problem loans have increased, suggesting more realized losses lie ahead.

Claros Mortgage Trust, Inc. Business Overview & Revenue Model

Company Description

Claros Mortgage Trust, Inc. is a real estate investment trust that focuses primarily on originating senior and subordinate loans on transitional commercial real estate assets located in principal markets across the United States. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, its net income would be exempt from federal taxation to the extent that it is distributed as dividends to shareholders. The company was incorporated in 2015 and is based in New York, New York.

How the Company Makes Money

Claros Mortgage Trust, Inc. makes money primarily through interest income generated from its portfolio of commercial mortgage loans. The company originates and acquires senior mortgage loans, mezzanine loans, and other commercial real estate-related debt investments. Interest income from these loans is the primary revenue stream for CMTG. Additionally, the company may earn fees from loan origination and servicing, as well as potential gains from the sale of loans or securities. CMTG's earnings are influenced by factors such as interest rate fluctuations, credit performance of its borrowers, and general economic conditions impacting the commercial real estate industry.

Claros Mortgage Trust, Inc. Financial Statement Overview

Summary

Claros Mortgage Trust, Inc. exhibits strengths in cash flow management and a debt-free balance sheet, which enhances its financial flexibility. However, the recent negative net income and declining profitability margins raise concerns about operational efficiency. The stability in equity ratio and strong cash flow to net income ratios are positive indicators, yet the volatility in revenue and profitability growth needs careful monitoring.

Income Statement

Claros Mortgage Trust, Inc. shows significant fluctuations in revenue growth and profitability over the years. The most recent year reflects a sharp increase in total revenue but a substantial net loss, resulting in a negative net profit margin. EBIT and EBITDA margins have also dropped significantly compared to previous years, indicating potential operational challenges.

Balance Sheet

The company's balance sheet indicates no total debt in the latest year, improving its financial stability. However, the return on equity is negative due to the net loss, and the equity ratio remains stable. The overall financial position is stable, but the negative net income poses risks to equity returns.

Cash Flow

Claros Mortgage Trust, Inc. shows a strong operating cash flow relative to net income, highlighting good cash generation capability despite reporting a net loss. Free cash flow remains positive, indicating effective cash management, but the decline in free cash flow growth compared to the previous period suggests potential challenges in maintaining cash flow momentum.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
95.85M	97.78M	129.83M	270.20M	248.30M	273.07M
	Gross Profit
-82.60M	97.78M	80.33M	185.84M	205.72M	226.34M
	EBIT
-91.48M	0.00	107.53M	371.50M	170.55M	202.41M
	EBITDA
-90.54M	10.49M	0.00	216.24M	176.90M	202.41M
	Net Income Common Stockholders
-247.09M	-221.26M	6.03M	112.06M	170.55M	202.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	99.08M	187.30M	7.80B	310.19M	427.51M
	Total Assets
6.66B	6.97B	8.07B	8.24B	7.46B	6.95B
	Total Debt
1.64B	1.70B	1.87B	1.70B	1.25B	1.57B
	Net Debt
1.51B	1.60B	1.68B	1.39B	935.12M	1.14B
	Total Liabilities
4.72B	4.96B	5.77B	5.79B	4.85B	4.33B
	Stockholders Equity
1.93B	2.01B	2.30B	2.46B	2.57B	2.59B
Cash Flow		Free Cash Flow
-3.33M	83.17M	109.05M	108.69M	202.09M	140.50M
	Operating Cash Flow
-3.16M	84.52M	111.14M	111.03M	213.56M	140.50M
	Investing Cash Flow
493.30M	779.91M	-39.34M	-773.30M	-373.20M	-208.86M
	Financing Cash Flow
-898.24M	-945.82M	-205.07M	676.30M	62.80M	161.32M

Claros Mortgage Trust, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMTG, the sentiment is Neutral. The current price of 2.99 is above the 20-day moving average (MA) of 2.66, above the 50-day MA of 2.58, and below the 200-day MA of 4.64, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 62.74 is Neutral, neither overbought nor oversold. The STOCH value of 79.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CMTG.

Claros Mortgage Trust, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRTX	67 Neutral	$632.47M	11.37	6.22%	12.12%	-13.64%	―
NYMT	64 Neutral	$618.54M	―	2.63%	11.68%	33.94%	96.99%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
NREF	61 Neutral	$255.79M	6.38	19.15%	13.85%	11.78%	65.73%
CMTG	52 Neutral	$417.98M	―	-11.91%	13.38%	-45.51%	-3658.39%
IVR	50 Neutral	$507.10M	18.47	6.55%	17.68%	137.36%	―
ACRE	48 Neutral	$270.63M	―	-2.33%	12.20%	-52.08%	10.36%

Claros Mortgage Trust, Inc. Corporate Events

Claros Mortgage Trust Faces GAAP Net Loss in Q4 2024

In February 2025, Claros Mortgage Trust, Inc. disclosed a financial presentation indicating a challenging financial period with a GAAP net loss of $100.7 million for the fourth quarter of 2024. Despite a decrease in their outstanding financings by $244 million during the quarter, the company’s loan portfolio remains substantial at $6.1 billion, with a focus on senior and floating-rate loans. The firm has managed to deleverage its portfolio significantly since 2023, but it faces a high percentage of loans with increased risk ratings, raising concerns for stakeholders.

Claros Mortgage Trust Reports $221M Net Loss in 2024

Claros Mortgage Trust, Inc. reported significant financial changes for the quarter and year ending December 31, 2024, showing a GAAP net loss of $221.3 million for the year. Despite the challenges, the company managed to achieve a total liquidity of $102 million and received $1.3 billion in loan repayment and sale proceeds for the year, reflecting a strong asset management focus. The company successfully reduced outstanding financings by $794 million over the year, with a total deleveraging of $643 million since 2023, and aims to redeploy capital to more accretive uses moving forward.