📊 CHMI-PA Key Takeaways
Investment Thesis
Cherry Hill Mortgage Investment Corp faces severe operational deterioration with revenue collapsing 51.5% YoY and shifting to net losses of $3.0M despite reported gross profit anomalies. The weak interest coverage of 0.7x combined with elevated debt-to-equity ratio and negative margins indicate structural profitability challenges that threaten dividend sustainability for this REIT. While positive operating cash flow provides near-term liquidity, the fundamental earnings deterioration and negative ROE/ROA suggest the business is in distress.
CHMI-PA Strengths
- Positive operating cash flow of $19.1M provides immediate liquidity
- Free cash flow of $19.1M demonstrates ability to service obligations
- Moderate debt-to-equity ratio of 0.62x compared to severe operational decline
CHMI-PA Risks
- Revenue declined 51.5% YoY indicating severe market headwinds or portfolio contraction
- Interest coverage ratio of 0.7x indicates insufficient earnings to cover debt service obligations
- Net margin of -26.5% and negative ROE/ROA of -1.3%/-0.2% show core business is unprofitable
- Diluted EPS deteriorated 228.6% YoY to -$0.09 suggesting dividend pressure
- Mortgage REIT sector highly sensitive to rate environment; margin compression evident
Key Metrics to Watch
- Quarterly revenue trend and portfolio composition changes
- Net interest margin and refinancing activity
- Interest coverage ratio recovery to >1.5x sustainable threshold
- Operating cash flow sustainability amid earnings deterioration
- Dividend payout and coverage ratios in upcoming quarters
CHMI-PA Financial Metrics
💡 AI Analyst Insight
The 168.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CHMI-PA Profitability Ratios
CHMI-PA vs Default Sector
How Cherry Hill Mortgage Investment Corp compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CHMI-PA Balance Sheet & Liquidity
CHMI-PA 5-Year Financial Trend
5-Year Trend Summary: Cherry Hill Mortgage Investment Corp's revenue has grown significantly by 1,805% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.70 indicates the company is currently unprofitable.
CHMI-PA Growth Metrics (YoY)
CHMI-PA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2018 | $3.3M | $2.9M | $2.64 |
| Q3 2017 | $1.7M | -$1.3M | $-0.18 |
| Q2 2017 | $1.1M | $283.0K | $0.04 |
| Q1 2017 | $1.1M | $168.0K | $-0.94 |
| Q3 2016 | $97.0K | -$1.3M | $-0.18 |
| Q2 2016 | $62.0K | $283.0K | $0.04 |
| Q1 2016 | N/A | $50.0K | $-0.32 |
| Q3 2015 | -$119.0K | $836.0K | $0.37 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CHMI-PA Capital Allocation
CHMI-PA SEC Filings
Access official SEC EDGAR filings for Cherry Hill Mortgage Investment Corp (CIK: 0001571776)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CHMI-PA
What is the AI rating for CHMI-PA?
Cherry Hill Mortgage Investment Corp (CHMI-PA) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CHMI-PA's key strengths?
Positive operating cash flow of $19.1M provides immediate liquidity. Free cash flow of $19.1M demonstrates ability to service obligations.
What are the risks of investing in CHMI-PA?
Revenue declined 51.5% YoY indicating severe market headwinds or portfolio contraction. Interest coverage ratio of 0.7x indicates insufficient earnings to cover debt service obligations.
What is CHMI-PA's revenue and growth?
Cherry Hill Mortgage Investment Corp reported revenue of $11.3M.
Does CHMI-PA pay dividends?
Cherry Hill Mortgage Investment Corp pays dividends, with $28.7M distributed to shareholders in the trailing twelve months.
Where can I find CHMI-PA SEC filings?
Official SEC filings for Cherry Hill Mortgage Investment Corp (CIK: 0001571776) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CHMI-PA's EPS?
Cherry Hill Mortgage Investment Corp has a diluted EPS of $-0.09.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.