Cherry Hill Cash Per Share vs. Operating Margin

CHMI-PA Preferred Stock  USD 22.45  0.32  1.45%   
Taking into consideration Cherry Hill's profitability measurements, Cherry Hill Mortgage may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Cherry Hill's ability to earn profits and add value for shareholders.
For Cherry Hill profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cherry Hill to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cherry Hill Mortgage utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cherry Hill's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cherry Hill Mortgage over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Cherry Hill's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cherry Hill is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cherry Hill's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Cherry Hill Mortgage Operating Margin vs. Cash Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cherry Hill's current stock value. Our valuation model uses many indicators to compare Cherry Hill value to that of its competitors to determine the firm's financial worth.
Cherry Hill Mortgage is number one stock in cash per share category among its peers. It also is number one stock in operating margin category among its peers reporting about  0.19  of Operating Margin per Cash Per Share. The ratio of Cash Per Share to Operating Margin for Cherry Hill Mortgage is roughly  5.19 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Cherry Hill by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cherry Hill's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Cherry Operating Margin vs. Cash Per Share

Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.

Cherry Hill

Cash Per Share

 = 

Total Cash

Average Shares

 = 
3.78 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Cherry Hill

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.73 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Cherry Operating Margin Comparison

Cherry Hill is currently under evaluation in operating margin category among its peers.

Cherry Hill Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cherry Hill, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cherry Hill will eventually generate negative long term returns. The profitability progress is the general direction of Cherry Hill's change in net profit over the period of time. It can combine multiple indicators of Cherry Hill, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. Cherry Hill Mortgage Investment Corporation was founded in 2012 and is based in Farmingdale, New Jersey. Cherry Hill operates under REIT - Residential classification in USA and is traded on New York Stock Exchange.

Cherry Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Cherry Hill. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cherry Hill position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cherry Hill's important profitability drivers and their relationship over time.

Use Cherry Hill in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cherry Hill position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cherry Hill will appreciate offsetting losses from the drop in the long position's value.

Cherry Hill Pair Trading

Cherry Hill Mortgage Pair Trading Analysis

The ability to find closely correlated positions to Cherry Hill could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cherry Hill when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cherry Hill - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cherry Hill Mortgage to buy it.
The correlation of Cherry Hill is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cherry Hill moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cherry Hill Mortgage moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cherry Hill can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Cherry Hill position

In addition to having Cherry Hill in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Money Market Funds Thematic Idea Now

Money Market Funds
Money Market Funds Theme
Funds or Etfs investing in various types of short-term (less than one year) fixed income instruments of high-quality and liquidity. The Money Market Funds theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Money Market Funds Theme or any other thematic opportunities.
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Other Information on Investing in Cherry Preferred Stock

To fully project Cherry Hill's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cherry Hill Mortgage at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cherry Hill's income statement, its balance sheet, and the statement of cash flows.
Potential Cherry Hill investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Cherry Hill investors may work on each financial statement separately, they are all related. The changes in Cherry Hill's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cherry Hill's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.