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Upturn AI SWOT - About
CHMI 
Cherry Hill Mortgage Investment Corp (CHMI)
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Upturn Advisory Summary
04/01/2025: CHMI (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 31.91% | Avg. Invested days 38 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 105.04M USD | Price to earnings Ratio 46.57 | 1Y Target Price 4 |
Price to earnings Ratio 46.57 | 1Y Target Price 4 | ||
Volume (30-day avg) 319384 | Beta 1.52 | 52 Weeks Range 2.26 - 3.52 | Updated Date 04/2/2025 |
52 Weeks Range 2.26 - 3.52 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 18.40% | Basic EPS (TTM) 0.07 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-03-05 | When After Market | Estimate 0.1233 | Actual 0.1 |
Profitability
Profit Margin 25.47% | Operating Margin (TTM) 65.29% |
Management Effectiveness
Return on Assets (TTM) 0.85% | Return on Equity (TTM) 4.96% |
Valuation
Trailing PE 46.57 | Forward PE - | Enterprise Value 1368232704 | Price to Sales(TTM) 2.24 |
Enterprise Value 1368232704 | Price to Sales(TTM) 2.24 | ||
Enterprise Value to Revenue 10.42 | Enterprise Value to EBITDA 5.72 | Shares Outstanding 31625100 | Shares Floating 31409074 |
Shares Outstanding 31625100 | Shares Floating 31409074 | ||
Percent Insiders 0.71 | Percent Institutions 15.73 |
Analyst Ratings
Rating 4.33 | Target Price 4 | Buy - | Strong Buy 2 |
Buy - | Strong Buy 2 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Cherry Hill Mortgage Investment Corp
Company Overview
History and Background
Cherry Hill Mortgage Investment Corporation was founded in 2012. It is focused on acquiring, investing in, and managing residential mortgage assets in the United States. The company's objective is to generate attractive risk-adjusted returns for its stockholders over the long term, primarily through dividend distributions and secondarily through capital appreciation.
Core Business Areas
- Residential Mortgage-Backed Securities (RMBS): Invests in Agency RMBS (securities issued and guaranteed by U.S. government agencies) and Non-Agency RMBS (not guaranteed by government agencies). Also includes credit risk transfer (CRT) securities which transfer the credit risk on a pool of mortgages guaranteed by Fannie Mae and Freddie Mac.
- Mortgage Servicing Rights (MSRs): Invests in MSRs, which represent the right to service mortgage loans on behalf of investors. This includes collecting mortgage payments, managing escrow accounts, and handling foreclosure proceedings.
Leadership and Structure
Jay Lown is the President and Chief Executive Officer. Michael Hutchby is the Chief Financial Officer. The company is structured as a real estate investment trust (REIT) and managed by Cherry Hill Mortgage Management, LLC.
Top Products and Market Share
Key Offerings
- Agency RMBS: These are mortgage-backed securities guaranteed by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. Market share varies with portfolio allocation and is heavily influenced by macroeconomic conditions and interest rate movements. Competitors include other REITs such as AGNC Investment Corp. and Annaly Capital Management.
- Non-Agency RMBS: These securities are not backed by government agencies and carry more credit risk. Market share depends on individual investment strategies and risk tolerance. Competitors are similar to those in the Agency RMBS market. Cherry Hill's proportion will be very very small as the market cap is much smaller.
- Mortgage Servicing Rights (MSRs): MSRs represent the right to service mortgage loans. The value of MSRs is sensitive to interest rate changes. Competitors include large mortgage servicers such as Ocwen Financial Corporation and PennyMac Financial Services.
Market Dynamics
Industry Overview
The mortgage REIT industry is heavily influenced by interest rates, economic conditions, and government regulations. It is cyclical and sensitive to changes in the housing market. Rising interest rates can negatively impact the value of RMBS and MSRs.
Positioning
Cherry Hill Mortgage Investment Corp. is a smaller player in the mortgage REIT space. Its competitive advantage lies in its ability to identify and capitalize on opportunities in the RMBS and MSR markets through active portfolio management. Their smaller size means they have greater agility.
Total Addressable Market (TAM)
The total addressable market for RMBS and MSRs is in the trillions of dollars. CHMI's position is a very small fraction, meaning there is plenty of room for growth, depending on their investment and strategy
Upturn SWOT Analysis
Strengths
- Experienced management team
- Focus on risk-adjusted returns
- Diversified investment portfolio across RMBS and MSRs
- Agility due to small size
Weaknesses
- Smaller market capitalization compared to larger peers
- External management structure which could cause conflicts of interest
- Sensitivity to interest rate fluctuations
- High volatility due to complex financial instruments.
Opportunities
- Expansion of investment portfolio into new asset classes
- Strategic acquisitions of smaller MSR portfolios
- Leveraging technology to improve servicing efficiency
- Capitalizing on distressed mortgage assets during economic downturns
Threats
- Rising interest rates
- Increased competition in the mortgage REIT space
- Changes in government regulations affecting the mortgage market
- Economic downturn leading to increased mortgage defaults
Competitors and Market Share
Key Competitors
- AGNC
- NLY
- IVR
Competitive Landscape
Cherry Hill is a smaller player compared to AGNC and Annaly. They must focus on niches in the RMBS and MSR markets to compete effectively. Due to being small, CHMI does have a smaller portfolio and may make moves faster.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been dependent on capital raising activities, investment performance, and macroeconomic conditions. Growth has been limited compared to its competitors. The company has been slow to grow
Future Projections: Future growth depends on the company's ability to effectively manage its portfolio, capitalize on market opportunities, and maintain a stable dividend payout. Analyst projections will vary.
Recent Initiatives: Recent initiatives could include portfolio adjustments, capital raising activities, and strategic partnerships to enhance investment returns.
Summary
Cherry Hill Mortgage Investment Corp. is a smaller mortgage REIT with a diversified portfolio of RMBS and MSRs. The company faces risks associated with interest rate fluctuations and competition in the REIT space. They must continue to focus on active portfolio management and identify opportunities to enhance shareholder returns. Their small size does offer agility when moving to a different strategy
Similar Companies
AGNC
AGNC Investment Corp
AGNC
AGNC Investment Corp
ARR
ARMOUR Residential REIT Inc
ARR
ARMOUR Residential REIT Inc
IVR
Invesco Mortgage Capital Inc
IVR
Invesco Mortgage Capital Inc
NLY
Annaly Capital Management Inc
NLY
Annaly Capital Management Inc
TWO
Two Harbors Investments Corp
TWO
Two Harbors Investments Corp
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Financial news sources
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and thorough research. Market share estimates are approximate and may vary.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Cherry Hill Mortgage Investment Corp
Exchange NYSE | Headquaters Tinton Falls, NJ, United States | ||
IPO Launch date 2013-10-04 | President, CEO & Director Mr. Jeffrey B. Lown II | ||
Sector Real Estate | Industry REIT - Mortgage | Full time employees 12 | Website https://www.chmireit.com |
Full time employees 12 | Website https://www.chmireit.com | ||
Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. It operates through Investments in RMBS (residential mortgage-backed securities) and Investments in Servicing Related Assets segments. The company has elected to be taxed as a real estate investment trust. The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Cherry Hill Mortgage Investment Corporation was incorporated in 2012 and is based in Tinton Falls, New Jersey.
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