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CIM-PA

Chimera Investment Corporation

CIM-PA

Chimera Investment Corporation • NYSE
$22.75 ▲ 1.79% (+0.40)
Market Cap $1.14 B
52w High $23.90
52w Low $19.85
Dividend Yield 2.00%
P/E 31.04
Volume 4.17K
Outstanding Shares 50.06M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $38.233M ▼ $20.692M ▲ $-580K ▼ -1.517% ▼ $-0.27 ▼ $0 ▼
Q2-2025 $198.258M ▲ $18.475M ▼ $35.45M ▼ 17.881% ▼ $0.17 ▼ $172.095M ▼
Q1-2025 $196.95M ▲ $196.95M ▲ $167.297M ▲ 84.944% ▼ $1.79 ▲ $291.4M ▲
Q4-2024 $-113.508M ▼ $-113.508M ▼ $-146.512M ▼ 129.076% ▲ $-1.81 ▼ $0
Q3-2024 $151.963M $151.963M $136.459M 89.798% $1.41 $0

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $491.475M ▲ $15.115B ▲ $12.544B ▲ $2.571B ▼
Q2-2025 $250.223M ▼ $14.863B ▲ $12.239B ▲ $2.625B ▼
Q1-2025 $253.349M ▲ $13.205B ▲ $10.561B ▼ $2.644B ▲
Q4-2024 $84.115M ▼ $13.116B ▼ $10.59B ▼ $2.526B ▼
Q3-2024 $97.423M $13.702B $10.965B $2.737B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-580K ▼ $-137.477M ▼ $58.144M ▲ $320.585M ▼ $241.252M ▲ $-137.477M ▼
Q2-2025 $35.45M ▼ $-7.429M ▼ $-1.203B ▼ $1.207B ▲ $-3.126M ▼ $-7.429M ▼
Q1-2025 $167.297M ▲ $48.799M ▲ $-175.325M ▼ $295.876M ▲ $169.35M ▲ $48.799M ▲
Q4-2024 $-146.512M ▼ $37.951M ▼ $689.651M ▲ $-740.93M ▼ $-13.328M ▲ $37.951M ▼
Q3-2024 $136.459M $41.416M $-646.222M $539.828M $-64.978M $41.416M

Revenue by Products

Product Q4-2018Q1-2019Q2-2019Q3-2019
Investment Advisory Services
Investment Advisory Services
 $0 ▲$10.00M ▲$10.00M ▲$10.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Earnings have been quite volatile, which is common for mortgage REITs but still important to note. After a meaningful loss a few years ago, profitability has recovered, with the last two years showing positive net income and improving per‑share results. The pattern suggests the business is very sensitive to swings in funding costs, credit performance of the mortgage portfolio, and market valuations. When conditions are favorable, results can look strong; when spreads or credit conditions move against them, earnings can quickly turn negative. Overall, recent years show a return to profitability, but with a history that underlines how cyclical and interest‑rate‑driven this business is.

Balance Sheet

Balance Sheet The balance sheet is typical for a mortgage REIT: a large pool of financial assets funded mostly with debt and a much smaller layer of equity. Total assets have drifted down from earlier levels, and equity has also trended lower from its peak, indicating some erosion of the capital cushion over time. Debt remains high relative to equity, reflecting significant leverage. Cash on hand is modest, which is normal for this model but leaves the company reliant on continued access to financing markets. Overall, the structure is workable for an mREIT, but depends heavily on stable funding and disciplined risk management.

Cash Flow

Cash Flow Operating cash flow has been consistently positive, even through more difficult earnings periods, which is a constructive sign. The cash generation profile has been steady rather than rapidly growing, but it has not shown prolonged weakness. Because this business is financial in nature, there is essentially no traditional capital spending, so free cash flow closely tracks operating cash flow. That said, for a mortgage REIT, cash flow can still be lumpy around asset sales, securitizations, and financing decisions, so stability here should still be viewed in the context of changing portfolio and funding strategies.

Competitive Edge

Competitive Edge Chimera operates in a crowded mortgage REIT space, competing with other specialty finance companies, banks, and capital‑markets investors. Its edge lies less in brand and more in expertise: understanding mortgage credit, structuring securitizations, and managing interest‑rate and prepayment risks. The company’s hybrid approach—investing in both agency and non‑agency mortgage assets—gives it flexibility to shift focus as conditions change. Its specialization in credit‑sensitive assets demands strong underwriting and risk analytics, which can be a differentiator if executed well. On the other hand, this same focus exposes the firm to more credit risk than peers that stick mostly to government‑backed assets. Leverage is a key competitive tool but also a vulnerability. In calm markets, leverage can enhance returns and support attractive distributions. In stressed markets, it can amplify losses and pressure book value. The company’s long experience and active hedging are advantages, but competition for mortgage assets and funding remains intense.

Innovation and R&D

Innovation and R&D Innovation here is mostly financial rather than technological. Chimera’s core “R&D” is in structuring mortgage securitizations, modeling credit and prepayment behavior, and designing hedging strategies. Its business is built around buying loans, pooling them, selling senior pieces, and retaining higher‑risk portions to capture extra yield. Recent strategic moves add a more distinctive angle. The acquisition of a non‑qualified mortgage originator brings the company closer to the source of loans, which can improve control over credit quality and provide a more reliable pipeline of assets. The purchase of an asset‑management and advisory platform introduces fee‑based income, which tends to be steadier and less capital‑intensive than interest income. These steps suggest a gradual evolution from a pure portfolio investor toward a more integrated mortgage finance platform with origination, securitization, and third‑party asset management capabilities. The main execution risk is successfully integrating these businesses while maintaining strong risk controls through changing rate and credit cycles.

Summary

Chimera Investment Corporation is a leveraged mortgage REIT with earnings that reflect the ups and downs of the mortgage and interest‑rate environment. Profitability has rebounded after a period of loss, but the history clearly shows that results can swing sharply when credit spreads or funding conditions change. The balance sheet is heavily debt‑funded, as is typical in this sector, with a relatively thin equity layer and modest cash, making prudent funding and risk management crucial. Cash flow from operations has been consistently positive, helped by the low‑capital‑intensity nature of the business. Competitively, the firm leans on its expertise in complex mortgage assets and its ability to structure and manage securitizations. Its focus on credit‑sensitive assets offers higher return potential but also elevates risk. Recent acquisitions in mortgage origination and fee‑based asset management point to a more diversified, vertically integrated model that could smooth earnings if executed well. Overall, Chimera’s profile combines meaningful strengths in mortgage finance with notable exposure to interest‑rate, credit, and funding risk. Future performance will hinge on how well management navigates rate cycles, maintains asset quality, and integrates its newer business lines while preserving capital and liquidity.