Claros Mortgage Trust (CMTG) AI Stock Analysis

• Market Cap: $517.34M
• Dividend Yield: 23.42%
• Average Volume (3M): 657.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -65.30%
• EPS Growth: -318.17%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): -0.77
• Shares Outstanding: 139,822,000
• 10 Day Avg. Volume: 870,938
• 30 Day Avg. Volume: 657,022
• PEG Ratio: <0.01
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 3.69
• P/FCF Ratio: 7.57
• Enterprise Value/Market Cap: 8.10
• Enterprise Value/Revenue: 29.51
• Enterprise Value/Gross Profit: -15.18K
• Enterprise Value/Ebitda: -30.39
• 1Y Price Target: $3.17
• Price Target Upside: -14.32% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $3.50 ▼(-5.41% Downside)

Claros Mortgage Trust's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue, profitability, and cash flow. While technical indicators and valuation metrics provide some positive aspects, the company's financial distress and recent losses weigh heavily on the score. The earnings call offers a mixed outlook, with strategic progress but ongoing financial challenges.

Positive Factors

Liquidity Improvement

The significant increase in liquidity enhances Claros Mortgage Trust's ability to manage debt obligations and invest in new opportunities, supporting long-term financial stability.

Strategic Loan Resolutions

Effective loan resolutions reduce risk exposure and improve asset quality, positioning the company for better financial performance and stability in the long term.

Commercial Real Estate Strategy

The successful execution of real estate strategies, such as condominiumization, demonstrates the company's ability to optimize asset value and enhance revenue streams.

Negative Factors

Declining Revenue

The decline in revenue and profitability indicates challenges in maintaining growth and financial health, potentially impacting long-term business sustainability.

High Leverage

High leverage increases financial risk and limits flexibility, potentially constraining the company's ability to invest in growth opportunities or weather economic downturns.

Negative Credit Migration

Negative credit migration reflects deteriorating asset quality, which could lead to higher default risks and increased financial strain over time.

Claros Mortgage Trust 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 generates revenue primarily through interest income from its mortgage loans and investments in real estate-related assets. The company originates and acquires loans secured by commercial properties, earning interest over the life of the loans. Additionally, CMTG may earn fees associated with loan origination, underwriting, and servicing. Key revenue streams include interest income, asset management fees, and potential profits from the sale of loans or properties. Partnerships with commercial real estate brokers and financial institutions also enhance CMTG's deal flow and investment opportunities, contributing to its overall earnings.

Claros Mortgage Trust Financial Statement Overview

Summary

Claros Mortgage Trust is facing significant financial challenges, with declining revenue, profitability, and cash flow. The high leverage and negative return on equity further exacerbate the situation. Recent performance indicates financial distress and increased risk.

Income Statement

Claros Mortgage Trust has experienced a significant decline in revenue and profitability. The TTM data shows a negative revenue growth rate of -13.13%, and the net profit margin has deteriorated to -5.01%. The company is facing challenges in maintaining profitability, as indicated by negative EBIT and EBITDA margins. Historically, the company had better margins, but recent performance suggests financial distress.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 2.29 in the TTM period, indicating significant leverage. Return on equity is negative, reflecting poor profitability. The equity ratio has decreased over time, suggesting increased financial risk. Historically, the company maintained a healthier balance sheet, but recent trends are concerning.

Cash Flow

Claros Mortgage Trust's cash flow situation is challenging, with a significant decline in free cash flow growth of -43.38% in the TTM period. The operating cash flow to net income ratio is very low at 0.009, indicating poor cash generation relative to earnings. The free cash flow to net income ratio is relatively stable, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	142.03M	170.67M	129.83M	270.20M	248.30M	273.07M
Gross Profit	-276.00K	64.70M	80.33M	185.84M	205.72M	226.34M
EBITDA	-137.91M	10.49M	0.00	216.24M	176.90M	202.41M
Net Income	-417.25M	-221.26M	6.03M	112.06M	170.55M	202.41M
Balance Sheet
Total Assets	5.82B	6.97B	8.07B	8.24B	7.46B	6.95B
Cash, Cash Equivalents and Short-Term Investments	209.20M	99.08M	188.20M	306.46M	310.19M	427.51M
Total Debt	4.02B	4.89B	5.56B	5.40B	4.57B	3.73B
Total Liabilities	4.07B	4.96B	5.77B	5.79B	4.85B	4.47B
Stockholders Equity	1.76B	2.01B	2.30B	2.46B	2.57B	2.45B
Cash Flow
Free Cash Flow	14.90M	83.17M	109.05M	108.69M	202.09M	140.50M
Operating Cash Flow	15.87M	84.52M	111.14M	111.03M	213.56M	140.50M
Investing Cash Flow	1.44B	779.91M	-39.34M	-773.30M	-373.20M	-208.86M
Financing Cash Flow	-1.39B	-945.82M	-205.07M	676.30M	62.80M	161.32M

Claros Mortgage Trust Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3.7 is below the 20-day moving average (MA) of 3.72, above the 50-day MA of 3.42, and above the 200-day MA of 3.34, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 27.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CMTG.

Claros Mortgage Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRTX	67 Neutral	712.03M	13.98	―	10.60%	-12.51%	―
ADAM	63 Neutral	659.29M	38.51	-4.45%	―	35.74%	―
NREF	61 Neutral	249.70M	5.83	―	14.19%	25.17%	―
IVR	50 Neutral	482.05M	18.56	―	20.36%	1.13%	―
ACRE	48 Neutral	262.93M	-14.18	―	16.74%	-27.60%	62.75%
CMTG	48 Neutral	$517.34M	―	-21.24%	23.42%	-65.30%	-318.17%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Claros Mortgage Trust Corporate Events

Claros Mortgage Trust Reports Q2 2025 Net Loss

Claros Mortgage Trust reported a GAAP net loss of $181.7 million for the quarter ended June 30, 2025, with significant loan resolutions totaling $1.0 billion in unpaid principal balance (UPB). The company also executed a sale of office and retail space for $29 million and refinanced debt with a $235 million non-recourse loan. Despite the losses, CMTG has improved its liquidity position, doubling it since the end of 2024, and is optimistic about continuing progress in the second half of 2025.

Claros Mortgage Trust Completes Texas Foreclosure

On July 1, 2025, Claros Mortgage Trust, Inc. completed a mortgage foreclosure on two multifamily properties in Texas, which were previously collateral for a senior loan made to several unaffiliated third-party borrowers. The loan, which was on non-accrual status and risk rated 5, had a net carrying value of $118.1 million as of March 31, 2025, indicating financial challenges for the company and potential implications for its stakeholders.

Claros Mortgage Trust Modifies Repurchase Agreement

On June 16, 2025, Claros Mortgage Trust‘s subsidiary, CMTG WF Finance LLC, modified its repurchase agreement with Wells Fargo Bank, National Association. The modification, effective June 13, 2025, included a reduction of the maximum facility amount to $250 million, impacting the company’s financial arrangements.

Claros Mortgage Trust Amends Repurchase Agreement with JPMorgan

On June 4, 2025, Claros Mortgage Trust, Inc. and its subsidiary, CMTG JNP Finance LLC, entered into an Amended and Restated Uncommitted Master Repurchase Agreement with JPMorgan Chase Bank. This agreement increased the maximum facility amount to $663.7 million, which could impact the company’s financial operations and market positioning.

Claros Mortgage Trust Holds Annual Stockholders Meeting

On June 4, 2025, Claros Mortgage Trust, Inc. held its Annual Meeting of Stockholders via live webcast. During the meeting, stockholders elected nine directors to serve until the next annual meeting in 2026, ratified PricewaterhouseCoopers LLP as the independent accounting firm for the fiscal year ending December 31, 2025, and approved the compensation of the company’s named executive officers.