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.
Moderate quality score of 48/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
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Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
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) however, earnings have severely contracted over the same period. 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 | $10.2M | +204.8% | +37.9% | — | +18.8% | |
| EBITDA | $13.9M | — | +9.7% | — | — | |
| Net Income | $3.7M | -43.0% | -32.0% | — | -6.4% | |
| EPS (Diluted) | $0.04 | +178.2% | -31.8% | — | -20.0% | |
| Free Cash Flow | $4.6M | +0.0% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 76.2% | 97.1% | 98.2% | 88.1% |
| Operating Margin | 52.1% | 55.9% | 55.9% | 7.7% |
| Net Margin | 20.0% | 68.4% | 60.6% | 73.8% |
| FCF Margin | 28.4% | -69.9% | -36.3% | -36.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $0.13 | $0.15 | +15.4% | ||
| Q2'26 | $0.12 | $0.14 | +16.7% | ||
| Q1'26 | $0.11 | $0.11 | +0.0% | ||
| Q4'25 | $0.11 | $0.09 | -18.2% | ||
| Q3'25 | $0.12 | $0.10 | -16.7% | ||
| Q2'25 | $0.11 | $0.17 | +54.5% | ||
| Q1'25 | $0.10 | $0.10 | +0.0% | ||
| Q4'24 | $0.14 | $0.08 | -42.9% |
Total return is +26.6% (1Y), outperforming the benchmark by +10.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +16.7% | +4.4% | — |
| 1Y | +26.6% | +10.6% | +16.1% |
| 3YCAGR | +2.5% | -18.4% | +39.7% |
| 5YCAGR | -7.5% | -18.9% | +38.6% |
| 10YCAGR | -1.6% | -15.3% | — |
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 Expensive versus peers compared to industry peers.
Cherry Hill Mortgage Investment Corporation has multiple valuation anchors: Peer Relative Fair Value: $2.01 | Wall Street Analyst Target: $3.10 (implying +13.1% upside). A convergence of these signals offers higher conviction.
Cherry Hill Mortgage Investment Corporation displays fair financial health with a composite quality score of 48/100, supported by a Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of 4.9%.
Cherry Hill Mortgage Investment Corporation pays a 28.8% dividend yield, covered by a 420% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Cherry Hill Mortgage Investment Corporation's current growth trajectory is Accelerating. The company achieved +204.8% 1Y revenue growth and +178.2% 1Y EPS growth, compared to its 3Y revenue CAGR of +37.9%.
Wall Street consensus is Hold based on 11 analysts, beating EPS expectations in 25% of recent quarters with a 2-quarter streak. The consensus price target represents a +13.1% change from current levels.
Investment risks for Cherry Hill Mortgage Investment Corporation include: -19.8% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.49x.
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.