Adamas Trust Inc. 7.875% Series E Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (ADAMM)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

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

Adamas Trust is a mortgage REIT holding agency and non-agency residential mortgage-backed securities, residential loans and related assets. That is a capital-intensive, spread-driven business, not a toll bridge; I see little durable moat. The preferred series I am asked about, ADAMM, carries a 7.875% fixed-to-floating coupon and is cumulative and redeemable, so the investment case rests on the issuer's ability to keep paying and ultimately redeem or refinance it. The filed record is volatile. In FY2023 the company lost $48.7M, and in FY2024 it lost $62.0M. Then FY2025 produced $149.0M of net income. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was $48.6M; in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $55.2M, with diluted EPS of $0.47. That is a genuine turnaround, and the Lynch rule correctly calls it a turnaround. Financial health is the hinge. FairStock's calculations show ROE of 16.44%, but ROCE of only 2.00%, D/E of 7.69 and a Piotroski F-Score of 4/9. Leverage is high, as one expects in this industry, but it magnifies credit and rate errors. Price-to-book is 2.39, which is not a Graham-style bargain. The preferred at $24.80 on 2026-10-13 sits near its $25 range high and close to par, so the market is pricing it more for yield and stability than for upside. I do not have CET1, net interest margin, combined ratio, detailed credit marks, prepayment data, or refinancing terms. Without those, and with only two strong recent quarters after two loss years, I would demand a margin of safety.

In plain English: Adamas Trust is a mortgage real estate company that invests in U.S. home loans and mortgage-related assets. It lost money in 2023 and 2024 but has been profitable again in 2025 and early 2026, and the latest quarters show much stronger earnings. The preferred shares trade close to their $25 face value, so the price looks roughly fair rather than cheap; high borrowing and a short profit history are the main risks.

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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