Claros Mortgage Trust (CMTG) AI Stock Analysis

• Market Cap: $447.34M
• Dividend Yield: 26.73%
• Average Volume (3M): 831.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -45.51%
• EPS Growth: -3658.39%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 66
• Industry: REIT - Mortgage
• EPS (TTM): -0.25
• Shares Outstanding: 139,792,270
• 10 Day Avg. Volume: 662,174
• 30 Day Avg. Volume: 831,438
• PEG Ratio: 0.16
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.26
• Enterprise Value/Market Cap: 11.13
• Enterprise Value/Revenue: 6.87
• Enterprise Value/Gross Profit: -55.67
• Enterprise Value/Ebitda: -22.28
• 1Y Price Target: $3.38
• Price Target Upside: 5.62% 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

Management Strategy

Management expects resolutions of watchlist loans will pick up substantially in the coming quarters.

Negative Factors

Loan Origination

The company did not originate any new loans in the fourth quarter.

Non-accrual Loans

Loans on non-accrual status totaled $1.1B by UPB, or 16.9% of the total portfolio, an increase from 14.9%.

Problem Loans

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

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, 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 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.78M	129.83M	270.20M	248.30M	273.07M
Gross Profit	64.70M	80.33M	185.84M	205.72M	226.34M
EBITDA	10.49M	0.00	216.24M	176.90M	202.41M
Net Income	-221.26M	6.03M	112.06M	170.55M	202.41M
Balance Sheet
Total Assets	6.97B	8.07B	8.24B	7.46B	6.95B
Cash, Cash Equivalents and Short-Term Investments	99.08M	188.20M	306.46M	310.19M	427.51M
Total Debt	4.89B	5.56B	5.40B	4.57B	3.73B
Total Liabilities	4.96B	5.77B	5.79B	4.85B	4.47B
Stockholders Equity	2.01B	2.30B	2.46B	2.57B	2.45B
Cash Flow
Free Cash Flow	83.17M	109.05M	108.69M	202.09M	140.50M
Operating Cash Flow	84.52M	111.14M	111.03M	213.56M	140.50M
Investing Cash Flow	779.91M	-39.34M	-773.30M	-373.20M	-208.86M
Financing Cash Flow	-945.82M	-205.07M	676.30M	62.80M	161.32M

Claros Mortgage Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.20
• 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 Positive. The current price of 3.2 is above the 20-day moving average (MA) of 3.09, above the 50-day MA of 2.88, and below the 200-day MA of 4.03, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 57.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$667.61M	11.87	6.22%	11.48%	-13.64%	―
NREF	61 Neutral	$255.97M	6.38	19.15%	13.77%	11.78%	65.73%
NYMT	58 Neutral	$630.28M	―	2.63%	11.46%	33.94%	96.99%
Sector *	53 Neutral	€155.75M	0.58	-275.32%	3.17%	-67.04%	-67.03%
CMTG	52 Neutral	$447.34M	―	-11.91%	26.73%	-45.51%	-3658.39%
IVR	50 Neutral	$503.14M	18.28	5.53%	19.40%	137.36%	―
ACRE	48 Neutral	$252.47M	―	-2.33%	17.43%	-52.08%	10.36%

Claros Mortgage Trust 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.