📊 CIMO Key Takeaways
Investment Thesis
Chimera Investment Corp demonstrates strong profitability margins (86.5% net margin) typical of REITs, but faces critical operational challenges evidenced by severely negative free cash flow of -$248.9M despite positive net income of $230.5M. The deteriorating cash generation capability, weak interest coverage of 1.9x, and concerning form 4 insider activity suggest underlying operational stress that contradicts the headline profitability metrics.
CIMO Strengths
- Exceptional net profit margin of 86.5% and operating margin of 87.4% reflecting efficient revenue conversion
- Low leverage with debt-to-equity ratio of 0.10x providing financial flexibility
- Strong revenue base of $266.4M with positive 0.7% YoY growth momentum
CIMO Risks
- Severe negative free cash flow of -$248.9M indicating inability to fund operations from core business activities
- Dangerous disconnect between reported net income ($230.5M) and actual cash generation suggesting non-cash gains or accounting quality concerns
- Weak interest coverage ratio of 1.9x limiting debt servicing capacity and financial resilience
- Significant insider trading activity (10 form 4 filings in 90 days) potentially indicating management concerns about fundamentals
Key Metrics to Watch
- Free cash flow trend and sources of cash outflows
- Quality of earnings and breakdown between cash and non-cash income components
- Interest coverage trajectory and debt refinancing needs
- Insider transaction patterns and sentiment indicators
CIMO Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CIMO Profitability Ratios
CIMO vs Default Sector
How CHIMERA INVESTMENT CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CIMO Balance Sheet & Liquidity
CIMO 5-Year Financial Trend
5-Year Trend Summary: CHIMERA INVESTMENT CORP's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.68 reflects profitable operations.
CIMO Growth Metrics (YoY)
CIMO Capital Allocation
CIMO SEC Filings
Access official SEC EDGAR filings for CHIMERA INVESTMENT CORP (CIK: 0001409493)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CIMO
What is the AI rating for CIMO?
CHIMERA INVESTMENT CORP (CIMO) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CIMO's key strengths?
Exceptional net profit margin of 86.5% and operating margin of 87.4% reflecting efficient revenue conversion. Low leverage with debt-to-equity ratio of 0.10x providing financial flexibility.
What are the risks of investing in CIMO?
Severe negative free cash flow of -$248.9M indicating inability to fund operations from core business activities. Dangerous disconnect between reported net income ($230.5M) and actual cash generation suggesting non-cash gains or accounting quality concerns.
What is CIMO's revenue and growth?
CHIMERA INVESTMENT CORP reported revenue of $266.4M.
Does CIMO pay dividends?
CHIMERA INVESTMENT CORP pays dividends, with $122.7M distributed to shareholders in the trailing twelve months.
Where can I find CIMO SEC filings?
Official SEC filings for CHIMERA INVESTMENT CORP (CIK: 0001409493) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CIMO's EPS?
CHIMERA INVESTMENT CORP has a diluted EPS of $1.72.
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.