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1. Company Snapshot

1.a. Company Description

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States.The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency and non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of residential, commercial mortgage loans, and other real estate related securities.It has elected to be taxed as a REIT.


In addition, the company invests in investment, non-investment grade, and non-rated classes.The company was incorporated in 2007 and is based in New York, New York.

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1.b. Last Insights on CIM

Chimera Investment Corporation's recent performance was negatively driven by a GAAP net loss of $2.07 per diluted common share in Q4 2024, a significant decline from the previous quarter. The company's mixed results and worst is over sentiment were reflected in the market price being higher than book value, indicating negative investor sentiment created by a history of dividend cuts. Additionally, the company's acquisition of the Palisades Group provides future catalysts for income and stabilization of the portfolio, but the short-term impact remains uncertain."

1.c. Company Highlights

2. Chimera Investment Corporation's Q3 2025 Earnings: A Closer Look

Chimera Investment Corporation reported a GAAP net loss of $22 million or $0.27 per share for the third quarter of 2025, missing analyst estimates of $0.37 actual EPS relative to estimates at $0.504. The company's GAAP book value at the end of the third quarter was $20.24 per share. Economic net interest income for the quarter was $69 million, and the yield on average interest-earning assets was 5.9%. The company's financial performance was impacted by the tightening of non-Agency RMBS spreads and the rally in short-term rates, which led to a decline in book value of approximately 3.2% during the quarter.

Publication Date: Nov -25

📋 Highlights
  • HomeXpress Acquisition: Closed for $267M, with Q3 2025 originations of $2.4B (36% YoY growth) and 2026 projected originations of $4B–$4.4B.
  • GAAP Net Loss: Recorded $22M ($0.27/share) for Q3 2025, but economic net interest income rose to $69M on a 5.9% asset yield.
  • Book Value Fluctuation: Declined 3.2% QoQ due to tighter non-Agency RMBS spreads, but recovered 2.4% by October 31, ending at $20.24/share.
  • Portfolio Reallocation: Residential credit allocation fell below 70%, while Agency MBS increased to 17%, and MSRs grew to 1.1%.
  • Future Earnings Outlook: Q4 2025: $15M–$18M pretax, $13M–$15M after-tax; 2026: $62M–$80M pretax, $53M–$68M after-tax.

Acquisition of HomeXpress Mortgage

The acquisition of HomeXpress mortgage, closed on October 1 for $267 million, is expected to contribute significantly to the company's future growth. HomeXpress originated $2.4 billion by UPB, up 36% year-over-year. For Q4, the company expects around $1 billion in originations, yielding expected pretax earnings of $15 million to $18 million and after-tax earnings of $13 million to $15 million. For 2026, the company projects $4 billion to $4.4 billion in originations, pretax earnings of $62 million to $80 million, and after-tax earnings of $53 million to $68 million. As Phillip Kardis stated, the acquisition shares their values and vision, and the company identified 7 key reasons why this acquisition made sense.

Valuation Metrics

With a P/B Ratio of 0.39 and a Dividend Yield of 12.15%, Chimera Investment Corporation's valuation metrics suggest that the company is undervalued. The P/E Ratio is 17.84, and the EV/EBITDA is 0.82. Analysts estimate next year's revenue growth at 17.6%, which could potentially drive the stock price higher. The company's ROE is 2.15%, and the ROIC is 24.18%, indicating a strong return on invested capital.

Portfolio and Investment Activity

The company's residential credit allocation is now below 70%, Agency MBS has increased to about 17%, and MSRs are small but growing at just over 1%. The issuance of $120 million in senior unsecured debt during the quarter allowed the company to retain a larger portion of the Agency MBS portfolio in advance of the HomeXpress acquisition. As Jack MacDowell explained, the change in book value was due to the steepening of the yield curve and the increase in value of securitized debt.

Outlook

As of October 31, the company's book value had increased by 2.4%. The deal's premium to book value was $120 million, with some adjustments to be made as the company true-ups its September numbers. The company's approach to retaining and securitizing HomeXpress originations is expected to support existing partnerships and generate returns on retained pieces of those deals in the mid-to-high teens. With a strong acquisition and a growing portfolio, Chimera Investment Corporation is well-positioned for future growth.

3. NewsRoom

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Chimera Investment Corporation $CIM Shares Sold by Advisors Asset Management Inc.

Dec -01

Source: defenseworld.net

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October Readers Identified 10 Ideal "Safer" Dividends In 39 Dogs

Nov -19

Source: seekingalpha.com

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Winners And Losers Of REIT Earnings Season

Nov -14

Source: seekingalpha.com

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Chimera Integrations Expands Into Rochester with New Leadership Team and Regional Headquarters

Nov -10

Source: businesswire.com

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Chimera Investment Corporation (CIM) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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CHIMERA INVESTMENT CORPORATION REPORTS 3RD QUARTER 2025 EARNINGS

Nov -06

Source: businesswire.com

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Chimera Declares Fourth Quarter 2025 Preferred Stock Dividends

Nov -05

Source: businesswire.com

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Cwm LLC Raises Stock Holdings in Chimera Investment Corporation $CIM

Nov -04

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.50%)

6. Segments

Real Estate Investment Trust

Expected Growth: 7.5%

Chimera Investment Corporation's diversified portfolio of residential and commercial mortgage-backed securities is poised for growth, driven by increasing demand for housing and commercial properties, low interest rates, and a strong economy.

7. Detailed Products

Real Estate Investment Trusts (REITs)

Chimera Investment Corporation offers a diversified portfolio of REITs, providing investors with a stable source of income and potential long-term capital appreciation.

Mortgage-Backed Securities (MBS)

Chimera Investment Corporation originates and invests in MBS, providing investors with a stable source of income and potential capital appreciation.

Non-Agency Residential Mortgage-Backed Securities (RMBS)

Chimera Investment Corporation invests in non-agency RMBS, providing investors with a higher yield potential compared to agency MBS.

Commercial Mortgage-Backed Securities (CMBS)

Chimera Investment Corporation originates and invests in CMBS, providing investors with a stable source of income and potential capital appreciation.

Asset Management Services

Chimera Investment Corporation offers asset management services to institutional investors, providing customized investment solutions and portfolio management expertise.

8. Chimera Investment Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Chimera Investment Corporation operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Chimera Investment Corporation's customers have significant bargaining power due to the availability of alternative investment options and the company's dependence on a few large clients.

Bargaining Power Of Suppliers

Chimera Investment Corporation has a diverse supplier base, and the company's scale and bargaining power enable it to negotiate favorable terms with its suppliers.

Threat Of New Entrants

While there are barriers to entry in the investment industry, new entrants can still pose a threat to Chimera Investment Corporation's market share, particularly if they offer innovative products or services.

Intensity Of Rivalry

The investment industry is highly competitive, and Chimera Investment Corporation faces intense rivalry from established players and new entrants, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 79.80%
Debt Cost 5.04%
Equity Weight 20.20%
Equity Cost 12.61%
WACC 6.57%
Leverage 395.05%

11. Quality Control: Chimera Investment Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Chimera Investment

A-Score: 6.9/10

Value: 7.7

Growth: 4.6

Quality: 7.8

Yield: 10.0

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

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TPG RE Finance Trust

A-Score: 6.7/10

Value: 6.0

Growth: 5.2

Quality: 5.8

Yield: 10.0

Momentum: 5.5

Volatility: 7.7

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New York Mortgage Trust

A-Score: 6.6/10

Value: 6.3

Growth: 2.4

Quality: 6.2

Yield: 10.0

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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Great Ajax

A-Score: 4.9/10

Value: 7.4

Growth: 0.2

Quality: 2.7

Yield: 10.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Ares Commercial Real Estate

A-Score: 4.6/10

Value: 5.2

Growth: 1.4

Quality: 3.8

Yield: 10.0

Momentum: 1.5

Volatility: 5.7

1-Year Total Return ->

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Claros Mortgage Trust

A-Score: 3.3/10

Value: 7.5

Growth: 1.2

Quality: 2.8

Yield: 5.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.95$

Current Price

12.95$

Potential

-0.00%

Expected Cash-Flows