📊 CIMO Key Takeaways
Is Chimera Investment Corp. (CIMO) a Good Investment?
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.
Chimera Investment shows strong reported profitability, with net income and EPS growing sharply year over year and very high operating and net margins. However, earnings quality looks mixed because operating cash flow is deeply negative, interest coverage is thin, and the balance sheet remains heavily liability-funded despite modest stated long-term debt. The fundamentals support stability more than conviction until cash generation and coverage improve.
Why Buy Chimera Investment Corp. Stock? CIMO 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
- Strong revenue base of $266.4M with positive 0.7% YoY growth momentum
- Net income rose 59.6% year over year, indicating strong recent earnings momentum
- Operating margin of 87.4% and net margin of 86.5% reflect very strong reported profitability
- Equity base of $2.57B and low reported long-term debt-to-equity of 0.10x provide some balance sheet support
CIMO Stock Risks: Chimera Investment Corp. Investment 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
- Operating cash flow of negative $248.88M suggests weak cash conversion and lower earnings quality
- Interest coverage of 1.9x leaves limited cushion if funding costs rise or earnings weaken
- Total liabilities of $13.24B versus $2.57B of equity indicate meaningful leverage at the overall balance sheet level
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
- Operating cash flow versus net income
- Interest coverage ratio
Chimera Investment Corp. (CIMO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CIMO Profit Margin, ROE & Profitability Analysis
CIMO vs Real Estate Sector: How Chimera Investment Corp. Compares
How Chimera Investment Corp. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Chimera Investment Corp. Stock Overvalued? CIMO Valuation Analysis 2026
Based on fundamental analysis, Chimera Investment Corp. appears fundamentally strong relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Chimera Investment Corp. Balance Sheet: CIMO Debt, Cash & Liquidity
CIMO Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
Chimera Investment Corp. Dividends, Buybacks & Capital Allocation
CIMO SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CIMO's key strengths?
Claude: 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. ChatGPT: Net income rose 59.6% year over year, indicating strong recent earnings momentum. Operating margin of 87.4% and net margin of 86.5% reflect very strong reported profitability.
What are the risks of investing in CIMO?
Claude: 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. ChatGPT: Operating cash flow of negative $248.88M suggests weak cash conversion and lower earnings quality. Interest coverage of 1.9x leaves limited cushion if funding costs rise or earnings weaken.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CIMO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Chimera Investment Corp. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CIMO stock overvalued or undervalued?
Valuation metrics for CIMO: ROE of 9.0% (sector avg: 8%), net margin of 86.5% (sector avg: 20%). Higher ROE suggests strong returns relative to peers.
Should I buy CIMO stock in 2026?
Our dual AI analysis gives Chimera Investment Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CIMO's free cash flow?
Chimera Investment Corp.'s operating cash flow is $-248.9M, with capital expenditures of N/A. FCF margin is -93.4%.
How does CIMO compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 86.5% (avg: 20%), ROE 9.0% (avg: 8%), current ratio N/A (avg: 1.5).