Cherry Hill Mortgage Investment Corporation Common Stock (CHMI)

FairStock Score: 34/100 — RISKY

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Healthy net profit margin of 13.2% showing consistent profitability
• Attractive 17.4% dividend yield providing steady income returns

Concerns

• High leverage at 5.50x debt-to-equity increases financial risk and interest expense burden
• Revenue declining at 37.2% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of -0.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Cherry Hill Mortgage Investment Corporation Common Stock is a micro-cap real estate company valued at $95 million. The business generates $40 million in annual revenue with a 13.2% net margin. From a quality standpoint, Cherry shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of -0.2 warrants caution. On valuation, the stock is reasonably priced at 17.3x earnings, with offers a 45% margin of safety vs Graham Number of $5. Growth dynamics show revenue growing at -37.2% and profit growth of -33.3%. The 17.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 34/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 5.5x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer