GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Cherry Hill Mortgage Investment Corp (NYSE:CHMI) » Definitions » ROE %

CHMI (Cherry Hill Mortgage Investment) ROE % : -20.71% (As of Sep. 2024)


View and export this data going back to 2013. Start your Free Trial

What is Cherry Hill Mortgage Investment ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cherry Hill Mortgage Investment's annualized net income for the quarter that ended in Sep. 2024 was $-48.79 Mil. Cherry Hill Mortgage Investment's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $235.60 Mil. Therefore, Cherry Hill Mortgage Investment's annualized ROE % for the quarter that ended in Sep. 2024 was -20.71%.

The historical rank and industry rank for Cherry Hill Mortgage Investment's ROE % or its related term are showing as below:

CHMI' s ROE % Range Over the Past 10 Years
Min: -14.78   Med: 6.14   Max: 19.97
Current: -13.29

During the past 12 years, Cherry Hill Mortgage Investment's highest ROE % was 19.97%. The lowest was -14.78%. And the median was 6.14%.

CHMI's ROE % is ranked worse than
93.06% of 922 companies
in the REITs industry
Industry Median: 5 vs CHMI: -13.29

Cherry Hill Mortgage Investment ROE % Historical Data

The historical data trend for Cherry Hill Mortgage Investment's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cherry Hill Mortgage Investment ROE % Chart

Cherry Hill Mortgage Investment Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -13.17 -14.78 4.19 8.08 -13.45

Cherry Hill Mortgage Investment Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.27 -51.84 18.82 1.27 -20.71

Competitive Comparison of Cherry Hill Mortgage Investment's ROE %

For the REIT - Mortgage subindustry, Cherry Hill Mortgage Investment's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cherry Hill Mortgage Investment's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Cherry Hill Mortgage Investment's ROE % distribution charts can be found below:

* The bar in red indicates where Cherry Hill Mortgage Investment's ROE % falls into.



Cherry Hill Mortgage Investment ROE % Calculation

Cherry Hill Mortgage Investment's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-34.794/( (262.035+255.476)/ 2 )
=-34.794/258.7555
=-13.45 %

Cherry Hill Mortgage Investment's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=-48.792/( (234.526+236.681)/ 2 )
=-48.792/235.6035
=-20.71 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Cherry Hill Mortgage Investment  (NYSE:CHMI) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=-48.792/235.6035
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-48.792 / -28.308)*(-28.308 / 1483.967)*(1483.967 / 235.6035)
=Net Margin %*Asset Turnover*Equity Multiplier
=172.36 %*-0.0191*6.2986
=ROA %*Equity Multiplier
=-3.29 %*6.2986
=-20.71 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=-48.792/235.6035
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-48.792 / -48.636) * (-48.636 / -28.308) * (-28.308 / 1483.967) * (1483.967 / 235.6035)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1.0032 * 171.81 % * -0.0191 * 6.2986
=-20.71 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Cherry Hill Mortgage Investment ROE % Related Terms

Thank you for viewing the detailed overview of Cherry Hill Mortgage Investment's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Cherry Hill Mortgage Investment Business Description

Traded in Other Exchanges
Address
1451 Route 34, Suite 303, Farmingdale, NJ, USA, 07727
Cherry Hill Mortgage Investment Corp operates as a real estate investment trust in the United States. It invests in residential mortgage assets to generate current yields and risk-adjusted total returns for its stockholders over the long term, primarily through dividend distributions and secondarily through capital appreciation. The company's reportable segments include investments in Residential mortgage-backed securities (RMBS), Investments in Servicing Related Assets, and All Others. It generates maximum revenue from the RMBS segment in the form of Interest income earned for servicing mortgage loans.
Executives
Jay Lown director, officer: President and CEO 301 HARPER DRIVE, SUITE 110, MOORESTOWN NJ 08057
Sharon L Cook director CHERRY HILL MORTGAGE INVESTMENT CORP, 1451 ROUTE 34, SUITE 303, FARMINGDALE NJ 07727
Regina Lowrie director 155 INVERNESS DRIVE, BLUE BELL PA 19422
Julian Evans officer: Chief Investment Officer 301 HARPER DRIVE, SUITE 110, MOORESTOWN NJ 08057
Michael Andrew Hutchby officer: Chief Financial Officer CHERRY HILL MORTGAGE MANAGEMENT, 1451 HIGHWAY 34, SUITE 303, FARMINGDALE NJ 07727
Martin Levine officer: Chief Financial Officer 301 HARPER DRIVE, SUITE 110, MOORESTOWN NJ 08057
Mercer Robert C Jr director 1256 OVERTON CIRCLE, GALLATIN TN 37066
Joseph J Murin director 6528 KAISER DRIVE, FREMONT CA 94555
Jonathan Kislak director 800 BRICKELL AVENUE, SUITE 400, MIAMI FL 33131
Stanley C. Middleman director, 10 percent owner 301 HARPER DRIVE, SUITE 110, MOORESTOWN NJ 08057
Robert A Salcetti director 1661 WORTHINGTON ROAD, SUITE 100, WEST PALM BEACH FL 33409
Citadel Gp Llc 10 percent owner 131 DEARBORN ST., 32ND FLOOR, CHICAGO IL 60603
Calc Iii Lp 10 percent owner 131 S. DEARBORN STREET, 32ND FLOOR, CHICAGO IL 60603
Kenneth C Griffin 10 percent owner CITADEL INVESTMENT GROUP LLC, 131 S DEARBORN STREET 32ND FL, CHICAGO IL 60603
Citadel Securities Llc 10 percent owner 131 SOUTH DEARBORN STREET, CHICAGO IL 60603