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Chimera Investment Corp. (CIM)
NYSE:CIM
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Chimera Investment
(NYSE:CIM)
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Rating:63Neutral
Price Target:―
Chimera Investment's overall score reflects a blend of solid financial performance with strong profit margins and stable cash flows, but concerns about high leverage and recent financial volatility. The stock's attractive valuation and high dividend yield are counterbalanced by technical indicators suggesting potential bearish momentum. The earnings call highlighted strategic growth plans and acquisitions, which provide a slightly positive outlook despite recent GAAP net losses.
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
$1.04B
Dividend Yield12.62%
Average Volume (3M)664.21K
Price to Earnings (P/E)10.3
Beta (1Y)0.83
Revenue Growth4.83%
EPS Growth-25.07%
CountryUS
Employees77
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.37
Shares Outstanding81,072,945
10 Day Avg. Volume697,404
30 Day Avg. Volume664,212
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.45
Price to Sales (P/S)1.47
P/FCF Ratio5.51
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$15.00Price Target Upside27.88% Upside
Rating ConsensusHold
Number of Analyst Covering1
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
Chimera Investment demonstrates strong gross and net profit margins, despite historical volatility in income and revenue. The balance sheet reflects high leverage, presenting potential risks. Cash flows are stable, yet the company's financing activities warrant attention for future stability.Income Statement
Chimera Investment shows strong gross profit margins, with significant improvement in net income and revenue in the latest year. However, past years have shown volatile revenue and profit trends, affecting stability.65
Positive
Balance Sheet
The company has a high debt-to-equity ratio, typical for REITs, which indicates high leverage. While equity has been relatively stable, the potential risk from leverage remains substantial.55
Neutral
Cash Flow
The cash flow statement indicates consistent free cash flow with recent growth. The operating cash flow has been stable, but the reliance on financing cash flows is a potential concern.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 281.70M | 770.22M | 718.97M | -776.09M | 1.06B | 228.84M |
| Gross Profit | 268.61M | 733.02M | 193.40M | 380.64M | 990.62M | 176.30M |
| EBITDA | 608.20M | 672.71M | 0.00 | -191.80M | 674.52M | 89.01M |
| 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 | 491.48M | 84.00M | 221.68M | 11.62B | 385.74M | 269.09M |
| Total Debt | 0.00 | 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 | 79.32M | 205.67M | 213.27M | 325.72M | 519.18M | 257.90M |
| Operating Cash Flow | 79.32M | 205.67M | 213.27M | 325.72M | 519.18M | 257.90M |
| Investing Cash Flow | -686.52M | 178.22M | 551.75M | 509.84M | 2.55B | 8.33B |
| Financing Cash Flow | 762.08M | -521.58M | -807.94M | -956.70M | -2.95B | -8.43B |
Chimera Investment Technical Analysis
Negative
11.73
Price Trends
13.27
Negative
13.33
Negative
12.86
Negative
Market Momentum
-0.20
Positive
28.94
Positive
42.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIM, the sentiment is Negative. The current price of 11.73 is below the 20-day moving average (MA) of 12.81, below the 50-day MA of 13.27, and below the 200-day MA of 12.86, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 28.94 is Positive, neither overbought nor oversold. The STOCH value of 42.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.37B | 11.29 | 9.21% | 11.32% | 82.82% | 2.95% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $1.12B | 15.25 | 7.02% | 19.67% | 72.30% | -54.02% | |
63 Neutral | $1.04B | 10.25 | 7.32% | 12.62% | 4.83% | -25.07% | |
62 Neutral | $936.34M | 10.42 | 6.90% | 15.94% | -7.70% | 40.36% | |
58 Neutral | $1.06B | 13.29 | 6.37% | 13.26% | -15.48% | -36.45% | |
54 Neutral | $1.01B | ― | -9.69% | 17.09% | 22.48% | 50.49% |
* Real Estate Sector Average
CIM
Chimera Investment
11.73
-1.85
-13.62%
EFC
Ellington Financial
13.78
2.76
25.05%
MFA
MFA Financial
8.97
-1.01
-10.12%
TWO
Two Harbors
9.54
-0.62
-6.10%
PMT
PennyMac Mortgage
12.07
0.25
2.12%
ORC
Orchid Island Capital
7.32
0.95
14.91%
Chimera Investment Corporate Events
Executive/Board Changes
Chimera Investment Board Member Resigns Abruptly
Neutral
Apr 11, 2025
On April 9, 2025, Sandra Bell, an independent member of the board of directors at Chimera Investment Corporation, announced her immediate resignation. Her departure was not due to any disagreements with the company’s operations, policies, or practices. Following her resignation, the board reduced its size by one director, effective April 11, 2025.
Spark’s Take on CIM Stock
According to Spark, TipRanks’ AI Analyst, CIM is a Neutral.
Chimera Investment Corporation has a solid financial foundation, with strong profit margins and stable cash flows. However, high leverage and recent net losses present risks. The stock shows bearish technical indicators, but attractive valuation metrics, such as a low P/E ratio and high dividend yield, offer potential investment appeal. Strategic growth initiatives and positive corporate events further support a moderately positive outlook.
To see Spark’s full report on CIM stock, click here.
Executive/Board Changes
Chimera Investment Announces Officer Departure
Neutral
Apr 8, 2025
On April 2, 2025, Chimera Investment Corporation announced that Dan Thakkar will step down from his role as Chief Credit & Risk Officer, effective July 1, 2025. The departure is amicable and not due to any disagreements with the company’s operations or policies. Thakkar will receive benefits outlined in his employment agreement, including additional COBRA premium reimbursement.
Spark’s Take on CIM Stock
According to Spark, TipRanks’ AI Analyst, CIM is a Neutral.
Chimera Investment’s stock score reflects stable financial performance with risks due to high leverage and past income volatility. Technical indicators suggest potential weakness in the short term, while valuation and dividend yield provide attractive investment propositions. The recent earnings call highlights strategic growth plans that could improve future performance.
To see Spark’s full report on CIM stock, click here.
Dividends
Chimera Investment Declares Q1 2025 Cash Dividend
Positive
Mar 20, 2025
On March 20, 2025, Chimera Investment Corporation announced the declaration of its first quarter cash dividend of $0.37 per common share. The dividend is set to be paid on April 30, 2025, to common stockholders of record as of March 31, 2025. This announcement reflects Chimera’s ongoing commitment to providing returns to its shareholders and may impact its market positioning by reinforcing investor confidence.
Business Operations and Strategy
Chimera Investment Shares Insights at RBC Conference
Neutral
Mar 3, 2025
On March 3, 2025, Chimera Investment Corporation participated in the RBC Capital Markets Global Financial Institutions Conference, where it made available an investor presentation. The presentation, which was posted on the company’s website, provides insights into Chimera’s operations and strategic positioning, although it is not considered ‘filed’ for regulatory purposes.
Dividends
Chimera Investment Declares Q1 2025 Preferred Dividends
Positive
Feb 11, 2025
On February 11, 2025, Chimera Investment Corporation announced the declaration of its first quarter dividends for several series of its preferred stocks, with payments scheduled for March 31, 2025. The dividends declared include $0.50 per share for Series A, $0.6488 per share for Series B, $0.484375 per share for Series C, and $0.6231 per share for Series D. This announcement highlights Chimera’s ongoing commitment to providing returns to its preferred shareholders, signaling stability and potential attractiveness to investors seeking consistent income in the real estate investment sector.
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.