Company Overview
Chimera Investment Corporation operates as a real estate investment trust (REIT) within the United States, utilizing two primary segments, Investment Portfolio and Residential Origination, to invest in, originate, and manage a portfolio of mortgage assets. The company is positioned within the Real Estate sector and specifically functions in the REIT - Mortgage industry, a classification that indicates its focus on providing liquidity for mortgage loans rather than traditional property ownership. As of the latest data, the entity holds a market capitalization of $1.04B, generates annual revenue of $368.88M, and employs a workforce of 423 individuals. These valuation and operational figures indicate a mid-sized capitalization structure within the mortgage REIT space, suggesting a significant but not dominant market position relative to the largest peers in the industry.
Financial Health
Chimera Investment Corporation reported revenue of $368.88M for the trailing twelve months, with net income reaching $144.47M, while specific EBITDA figures are not disclosed in the available data. The substantial gap between revenue and net income reveals an aggressive cost structure where operating expenses, taxes, and interest costs consume a significant portion of top-line earnings before arriving at the bottom line. Regarding liquidity and cash generation, free cash flow data is not available in the current dataset, which limits the ability to assess immediate financial flexibility through cash-on-cash analysis. The company demonstrates exceptional profitability with a gross margin of 92.5%, an operating margin of 43.2%, and a profit margin of 62.5%, indicating that the business model effectively converts revenue into retained earnings. On the liability side, total debt stands at $13.07B against cash reserves of $303.77M, resulting in a debt-to-equity ratio of 508.12, which characterizes a highly leveraged balance sheet typical of mortgage REITs but one that requires careful interest rate management. Short-term liquidity is supported by a current ratio of 1.68, suggesting the company possesses sufficient current assets to cover its current liabilities with a 68% buffer. Return on equity is calculated at 9.0%, while return on assets sits at 1.6%, revealing that the company generates returns primarily through equity financing rather than asset turnover, highlighting the capital-intensive nature of the mortgage origination business.
Valuation Assessment
The trailing twelve-month price-to-earnings ratio is 7.22, while the forward P/E is projected at 5.49, implying that the market expects earnings to expand significantly in the future to justify a lower multiple on forward earnings. The price-to-book ratio of 0.40 indicates that the market is valuing the company at a deep discount to its book value, suggesting a lack of market premium over the underlying net asset value. Alternative valuation metrics such as the price-to-sales ratio of 2.81 and the unavailable EV/EBITDA multiple provide additional context, showing that revenue is valued at a premium relative to sales figures, potentially reflecting the asset-heavy nature of the portfolio. Price metrics show a 52-week high of $14.88 and a low of $9.85, and without a specific current share price provided in the facts, the trading range establishes the volatility bounds within which the stock has operated over the last year. The beta of 1.85 indicates that the stock's price volatility is nearly double that of the broader market, reflecting the high sensitivity of mortgage REITs to interest rate fluctuations and economic cycles.
Growth & Income
Available data does not disclose specific revenue growth or earnings growth rates year-over-year, preventing a direct comparison of earnings acceleration against revenue expansion in the provided metrics. Despite the lack of explicit growth rates, the company maintains a substantial dividend yield of 14.5%, supported by a payout ratio of 86.1%, which implies that the vast majority of net income is distributed to shareholders rather than reinvested into the business. The high payout ratio combined with the absence of reported growth rates suggests a maturity profile where the company prioritizes income distribution over capital expansion or aggressive organic growth strategies. Overall, the financial profile presents a high-income, low-growth instrument characterized by significant leverage and a deep discount to book value, catering specifically to income-focused investors seeking exposure to the mortgage REIT sector.