Cherry Hill Mortgage Investment Corporation (CHMI)
Valuation Overview•Is Cherry Hill Mortgage Investment Corporation Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 45/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
CHMI demonstrates strong business quality with robust profitability and healthy margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is driving exceptional top-line expansion (37.9% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 52.1% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $26.0M | +204.8% | +37.9% | — | +18.8% | |
| EBITDA | $12.8M | — | — | — | — | |
| Net Income | $7.9M | -43.0% | -32.0% | — | -6.4% | |
| EPS (Diluted) | $-0.05 | -246.4% | — | — | — | |
| Free Cash Flow | $12.6M | +0.0% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 76.0% | 97.1% | 98.2% | 88.1% |
| Operating Margin | 52.1% | 55.9% | 55.9% | 7.7% |
| Net Margin | 27.2% | 68.4% | 60.6% | 73.8% |
| FCF Margin | 39.1% | -69.9% | -36.3% | -36.7% |
Total return is -4.8% (1Y), lagging the benchmark by -29.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -3.6% | -12.9% | — |
| 1Y | -4.8% | -29.8% | +15.4% |
| 3YCAGR | -5.9% | -25.2% | +34.5% |
| 5YCAGR | -9.5% | -22.0% | +37.6% |
| 10YCAGR | -0.8% | -14.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Cherry Hill Mortgage Investment Corporation (CHMI) valuation, health, and returns.
Based on peer relative multiples, Cherry Hill Mortgage Investment Corporation appears Limited: Expensive versus peers compared to industry peers.
Cherry Hill Mortgage Investment Corporation has multiple valuation anchors: Peer Relative Fair Value: $1.72. A convergence of these signals offers higher conviction.
Cherry Hill Mortgage Investment Corporation displays fair financial health with a composite quality score of 45/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 4.9%.
Cherry Hill Mortgage Investment Corporation does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Cherry Hill Mortgage Investment Corporation's current growth trajectory is Accelerating. The company achieved +204.8% 1Y revenue growth and -246.4% 1Y EPS growth, compared to its 3Y revenue CAGR of +37.9%.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Cherry Hill Mortgage Investment Corporation include: -28.1% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.72x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.