Chimera Investment Corporation (CIMN): fair value, margin of safety and Wheel Score

Is CIMN undervalued?

Chimera Investment Corporation (CIMN) closed at 24.92 on 16 Oct 2026, 371% above the GLS average fair value of 5.30. 5 of the 6 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.

There is a wide gap between Lynch (0.0037) and DDM (25.31). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files CIMN under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for CIMN

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Chimera Investment Corporation scores only 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 2.5/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

Returns on capital are thin or negative - ROIC 1.5%, ROE 9.0%, ROA 1.5% - with debt at 5.08 times equity and negative free cash flow. Debt of 5.08 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.

The dividend yield is high at 20.12% (payout ratio 22387%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.

Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 20: No options

No options are listed on Chimera Investment Corporation in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 20) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 21k shares a day on a market cap of $732M, with a beta of 0.06 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 7 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for CIMN in the nightly calendar. The shares go ex-dividend on 30 Oct 2026 (0.5625 per share), so a covered call sold before then carries a small early-assignment risk around that date.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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