Adamas Trust Inc. 7.000% Series G Cumulative Redeemable Preferred Stock $0.01 par value per share (ADAMZ)

FairStock Score: 69/100 — STEADY

Key Financials

AI Analysis

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

Mr. Market is offering the Series G preferred at $16.03 as of 2026-10-13, a 10.91% yield. The 7% coupon is cumulative, so missed dividends generally must be made up before common dividends, but cumulative does not mean risk-free; it depends on the issuer's ability to pay. Adamas is a mortgage REIT that invests in residential mortgage assets. That is a spread-and-leverage business with no wide moat. The filed record shows a violent turnaround: fiscal 2023 net loss $48.7M, fiscal 2024 net loss $62.0M, then fiscal 2025 net income $149.0M. 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. FairStock calculations show ROE 16.44%, P/B 1.55, D/E 7.69, ROCE 2.00%, Piotroski 4/9, and a 69/100 score. The ROE is respectable, but 7.7x debt-to-equity leaves little room for credit or funding shocks. The FairStock P/B of 1.55 is not a bargain, and the loss years show earnings are not consistent. For the preferred, the high yield may compensate for credit and interest-rate risk, but the data lacks CET1, net interest margin, and underwriting/credit metrics. I would want preferred dividend coverage and call terms before feeling comfortable. At $16.03, this looks like a fair-to-speculative income security, not a margin-of-safety bargain.

In plain English: Adamas Trust invests in mortgage-related residential assets. The business has swung from losses to solid profits in recent quarters, but it uses a lot of borrowed money, so results can change quickly. At the recent price, the preferred stock offers a high income yield; that looks fair for the risk rather than clearly cheap.

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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