Adamas Trust Inc. 8.00% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (ADAMN)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

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

As a value investor, I begin with the security, not the story. ADAMN is an 8.00% Series D cumulative redeemable preferred of Adamas Trust, a mortgage REIT. At $23.11 on 2026-10-13, the supplied dividend yield is 8.65%. That is attractive only if the underlying earnings can carry it. The company's record is uneven: in fiscal 2023, the year ended 2023-12-31, it lost $48.7M, or $0.99 diluted EPS; in fiscal 2024, the year ended 2024-12-31, it lost $62.0M, or $1.14. Then fiscal 2025, ended 2025-12-31, earned $149.0M, or $1.10. Recent quarters show improvement: fiscal Q3 2025, the quarter ended 2025-09-30, net income was $44.8M and diluted EPS $0.36; fiscal Q1 2026, the quarter ended 2026-03-31, net income was $48.6M and EPS $0.40; fiscal Q2 2026, the quarter ended 2026-06-30, net income was $55.2M and EPS $0.47. FairStock's Lynch category is TURNAROUND, because the company returned to profit after losses within the last three years. The FairStock score is 65/100. The ROE of 16.44%, ROCE of 2.00%, D/E of 7.69, and P/B of 2.23, as of the 2026-10-13 close, are FairStock calculations from the supplied data. I do not use free cash flow, EV/EBITDA, Altman Z or the Graham Number for a financial company, and CET1, NIM, and combined ratio are not in the data. Mortgage REITs rarely have a durable moat; returns depend on financing spreads and credit. The preferred looks like a decent yield, but I want proof that dividends are covered through the cycle.

In plain English: Adamas Trust owns and manages mortgage-related residential investments. The company lost money in 2023 and 2024 but has made money since, and recent quarters show improving profits. This preferred stock pays an 8% dividend and trades at $23.11; the common stock looks expensive versus its accounting value, but the preferred is mainly a question of whether the dividends keep getting paid.

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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