Adamas Trust Inc. Common Stock (ADAM)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable competitive advantages, conservative finances, and a margin of safety. Adamas Trust is not that ideal. It owns and finances residential mortgage assets, a commodity-like business where pricing power is limited and success depends on funding costs, leverage, and credit. The turnaround is real: in fiscal 2024, the year ended 2024-12-31, net income was -$62.0 million and diluted EPS -$1.14, after fiscal 2023, ended 2023-12-31, net income -$48.7 million and EPS -$0.99. In fiscal 2025, ended 2025-12-31, net income was $149.0 million and EPS $1.10. More recently, in fiscal Q1 2026, the quarter ended 2026-03-31, net income was $48.6 million and EPS $0.40, while in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $55.2 million and EPS $0.47. That is a sharp recovery. At the 2026-10-13 close, FairStock calculations put the P/E at 4.54 and P/B at 0.73, with ROE 16.44%, ROCE 2.00%, PEG 0.01, dividend yield 13.47%, and Piotroski F-Score 4/9. On the surface, the price is cheap against book value and earnings. But debt-to-equity of 7.69 is very high, even for a mortgage REIT, and the low ROCE suggests leverage is flattering ROE. Earnings consistency has been poor, with losses before the current profits. The 13.47% dividend yield is attractive only if earnings and book value hold; it may also warn of credit or funding stress. I would want CET1, net interest margin, and combined-ratio-type data, but none are provided. Mortgage credit, financing spreads, and book value are the real tests. The Lynch category is TURNAROUND—returned to profit after a loss within the last three years—so the margin of safety depends on whether this recovery is durable.

In plain English: Adamas Trust is a real estate company that invests in and finances home mortgages and mortgage-backed assets. After losing money in 2023 and 2024, it returned to profit in 2025 and has reported strong recent quarterly income, but it uses a lot of borrowed money, so results can be unstable. At $7.62, the shares look cheaper than the company's accounting value and recent earnings, though the very high dividend may signal risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer