| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 64 | — | 17.3x | Around median | |
Growth | 14 | 11.6% | 7.1% | Bottom tier | |
Quality | 74 | 11.0% | 4.5% | Top tier | |
Safety | 33 | — | 2.6x | Bottom tier | |
Capital Return | 81 | 6.64% | 0.06% | Top tier | |
Momentum | 56 | -0.6% | -1.6% | Around median | |
Sentiment | — | — | 3 | N/A |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Chimera Investment Corporation operates as an integrated residential mortgage credit platform, combining an investment portfolio of loans and mortgage-backed securities with loan origination through HomeXpress Mortgage. Earnings come from net interest income on funded assets, returns from residential credit and Agency RMBS, fees and services from Palisades Advisory Services, as well as loan sales or securitizations and the retention of certain credit tranches based on relative returns and capital requirements.
In Q2 fiscal year 2026, EDGAR data showed revenue of $221.6 million and net income of $17.4 million, compared with revenue of $219.3 million and a net loss of $43.9 million in Q1 fiscal year 2026. Earnings per share according to EDGAR data were negative $0.05, while the earnings call reported a GAAP net loss of approximately $4 million, split between a $13 million loss in the investment portfolio segment and a $9 million profit in the residential mortgage origination segment; the provided data did not include a gross profit margin.
Earnings available for distribution were $39 million, or $0.46 per share, covering the quarterly distribution of $0.45 per share by a narrow margin. The investment portfolio generated economic net interest income of $66.3 million, with an asset yield of 5.9%, a funding cost of 4.3%, and a net interest spread of 1.6%, while HomeXpress funded a record $1.1 billion of loans, generated EBITDA of $11.8 million, and delivered an annualized EBITDA return on equity of 17.3%.
Automated analysis for informational purposes only — not investment advice.
The 52-week range is between $24.25 and $25.64, a narrow range that is entirely approximately 37% to 44% above book value of $17.75 per share at the end of Q2 fiscal year 2026. This premium reflects the value of the distributions and the HomeXpress platform, but it must be weighed against the 3.2% decline in book value, its interest-rate sensitivity, and the narrow distribution coverage of $0.46 in earnings available for distribution versus $0.45 distributed per share.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Chimera relies on two primary sources: the investment portfolio and residential mortgage origination through HomeXpress. In Q2 fiscal year 2026, the portfolio generated economic net interest income of $66.3 million, but recorded a segment net loss of $13 million. In contrast, the mortgage origination segment recorded net income of $9 million, while HomeXpress funded $1.1 billion of loans and generated EBITDA of $11.8 million.
Earnings available for distribution in Q2 fiscal year 2026 were approximately $39 million, or $0.46 per share. This covered the quarterly distribution of $0.45 per share, but the coverage margin was limited to one cent. The company generated $1.00 of earnings available for distribution during the first half, while management maintained its expectation of at least $1.80 per share for fiscal year 2026.
HomeXpress production increased in Q2 fiscal year 2026 by 30% year over year and 24% quarter over quarter to $1.1 billion, and June 2026 recorded a monthly record of $420 million. This growth is supported by a network of more than 6,350 brokers, in addition to the non-delegated correspondent channel, which now represents 13% of production. The average loan size also increased to more than $455 thousand from $410 thousand, while warehouse funding capacity rose to $1.65 billion in July 2026.
The company aims to complete two securitizations of HomeXpress loans and one securitization of loans purchased from third parties by the end of fiscal year 2026. It identified and retained $301 million of HomeXpress loans to fund the first transaction, which was targeted for the latter part of Q3 fiscal year 2026. At distribution, the company will decide whether to retain the credit tranche to generate long-term income or sell the entire structure and record a gain on sale within earnings available for distribution.
Book value per share declined 3.2% to $17.75, and the GAAP economic return on book value was negative 0.8% after accounting for the $0.45 distribution. Management attributed the decline primarily to higher interest rates and the reduced value of approximately $8 billion of loans financed by roughly $5.5 billion of fixed, non-mark-to-market securitization debt. The company does not hedge book value fluctuations in this portion because it believes the movements do not change its ability to generate earnings or pay distributions, while it hedges floating-rate financing obligations to protect earnings power.
Q2 fiscal year 2026 indicators showed improvement in two main categories. Delinquencies in the legacy reperforming loan portfolio declined to 8.8% from 9.1% in Q1 fiscal year 2026, while delinquencies in the investor DSCR portfolio fell to 4.7% from 6.1%. In addition, 16 cases in the legacy RTL portfolio were resolved, including 13 repayments and three resolutions, while HomeXpress kept its underwriting standards and weighted FICO and LTV metrics consistent with historical levels.