Adamas Trust Inc. 9.875% Senior Notes Due 2030 (ADAMH)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

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

I approach these notes as a credit investor, not as an owner of the equity. Adamas Trust invests in mortgage-related single-family and multifamily residential assets. The turnaround is real on paper: after net losses of $48.7M in FY2023 and $62.0M in FY2024, the company earned $149.0M in FY2025, with diluted EPS of $1.10. More recently, in fiscal Q1 2026 ended 2026-03-31, net income was $48.6M and diluted EPS $0.40; in fiscal Q2 2026 ended 2026-06-30, net income was $55.2M and diluted EPS $0.47. That is a sharp improvement from fiscal Q2 2025 ended 2025-06-30, when net income was just $8.5M and diluted EPS was $-0.04. But I am not impressed by the quality. The business has no obvious moat: mortgage asset selection is competitive and capital-intensive. FairStock shows debt-to-equity of 7.69 and ROCE of only 2.00%, while ROE of 16.44% is achieved through heavy leverage. The P/B of 2.39 means equity is not cheap against book value. FairStock Score is 39/100, and the Lynch category is TURNAROUND, which fits a company that has just recovered from losses. The notes carry a high 9.875% coupon, maturing in 2030; at $24.78, near the bottom of the 52-week range of $24.49-$25.99, the market is demanding compensation. For the note to work, earnings must stay positive and leverage must remain serviceable. I would watch coverage, not the coupon alone.

In plain English: The company invests in mortgage-related residential assets. It lost money in 2023 and 2024 but returned to profit in 2025 and recent quarters, though it uses a lot of borrowed money. The notes trade at $24.78, near the low end of their 52-week range, so the market sees some 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