0.03 | 0.97%
CHIMERA INVESTMENT CORP's gross profit margin for the fourth quarter of its fiscal year 2011 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased.
During the same period, stockholders' equity ("net worth") has decreased by 17.25% from the same quarter last year.
| Income Statement | Q4 FY11 | Q4 FY10 |
|---|---|---|
| Net Sales ($mil) | 167.54 | 151.85 |
| EBITDA ($mil) | 148.75 | 132.98 |
| EBIT ($mil) | 148.75 | 132.98 |
| Net Income ($mil) | 42.75 | 122.18 |
| Balance Sheet | Q4 FY11 | Q4 FY10 |
|---|---|---|
| Cash & Equiv. ($mil) | 257.03 | 242.54 |
| Total Assets ($mil) | 7747.14 | 8073.7 |
| Total Debt ($mil) | 4516.04 | 4054.11 |
| Equity ($mil) | 3047.62 | 3683.01 |
| Profitability | Q4 FY11 | Q4 FY10 |
|---|---|---|
| Gross Profit Margin | 88.78 | 87.57 |
| EBITDA Margin | 88.78 | 87.57 |
| Operating Margin | 88.78 | 87.57 |
| Sales Turnover | 0.09 | 0.07 |
| Return on Assets | 1.77 | 3.07 |
| Return on Equity | 4.5 | 6.74 |
| Debt | Q4 FY11 | Q4 FY10 |
|---|---|---|
| Current Ratio | 0.0 | 0.0 |
| Debt/Capital | 0.6 | 0.52 |
| Interest Expense | 30.7 | 37.05 |
| Interest Coverage | 4.85 | 3.59 |
| Share Data | Q4 FY11 | Q4 FY10 |
|---|---|---|
| Shares outstanding (mil) | 1027.47 | 1027.03 |
| Div / share | 0.11 | 0.17 |
| EPS | 0.04 | 0.13 |
| Book value / share | 2.97 | 3.59 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 8000043.0 | 1.2949253E7 |
BUY. This stock's P/E ratio indicates a significant discount compared to an average of 70.80 for the Real Estate Investment Trusts (REITs) industry and a premium compared to the S&P 500 average of 18.91. To use another comparison, its price-to-book ratio of 1.04 indicates a discount versus the S&P 500 average of 2.42 and a significant discount versus the industry average of 2.90. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, CHIMERA INVESTMENT CORP proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CIM 23.69 | Peers 70.80 | CIM 7.07 | Peers 19.60 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CIM is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CIM is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| CIM 7.70 | Peers 53.02 | CIM 0.12 | Peers 4.67 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. CIM is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CIM trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| CIM 1.04 | Peers 2.90 | CIM -55.18 | Peers 66.44 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CIM is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, CIM is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| CIM 4.49 | Peers 7.78 | CIM 22.37 | Peers 21.89 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CIM is trading at a significant discount to its industry on this measurement. |
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share. CIM is keeping pace with its peers on the basis of sales growth. |
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