Chimera Investment Corporation Common Stock (CIM)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

As a value investor, I start with the business: Chimera is a mortgage REIT that invests in and originates residential mortgage assets. It has no durable competitive moat; its profit comes from spread income and leverage, and those are controlled by rates, credit, and funding markets. The balance sheet is highly levered: debt-to-equity of 5.57, so a small asset shock can wipe out equity. Returns on capital are dismal: FairStock's figures show ROE of 0.05% and ROCE of 0.01%. Earnings are inconsistent. Filed figures show FY2023 net income of $126.1M, FY2024 of $176.1M, and FY2025 of $230.5M, but quarterly results swing hard: a net loss of $43.9M in fiscal Q1 2026 (quarter ended 2026-03-31), then net income of $17.4M in fiscal Q2 2026 (quarter ended 2026-06-30), though diluted EPS was -$0.05. FairStock's P/B of 0.30 at the 2026-10-13 close is optically cheap, and the 16.56% dividend yield is eye-catching. But the negative P/E of -8.42, trailing EPS of -$1.04, profit growth of -51%, and Piotroski F-Score of 3/9 suggest the market is discounting real credit or book-value risk. The 16.56% yield may not be safely covered. I would want CET1, net interest margin, and credit-loss data; those are not provided. At $8.76, the price may be fair-to-cheap only if management can stabilize earnings and protect book value. Otherwise it is a value trap.

In plain English: Chimera is a mortgage real estate investment trust that invests in home loans and mortgage-backed securities. It makes money from the difference between what those assets earn and what it pays to borrow, so results swing with interest rates and credit conditions. The business looks weak right now: recent quarterly results have been uneven, and it carries a lot of debt. The stock price is low compared with the company's accounting value, but that low price may reflect real risks rather than a simple bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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 Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · 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