ADAM

Adamas Trust

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Real Estate

industry

REIT - Mortgage

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

ADAM operates as a mortgage REIT, generating cash flow by investing in mortgage-related assets and capturing the spread between asset yields and its cost of capital. Profitability hinges on disciplined leverage, interest rate positioning, and asset selection rather than organic growth. The moat, if any, comes from portfolio structuring expertise, funding relationships, and risk management processes that allow it to navigate rate cycles. Cash generation is ultimately a function of spread stability and capital efficiency, making balance-sheet strength and underwriting discipline the real competitive advantages.

VALUATION

P/E

6.9

Market Cap ($M USD)

$686

Forward P/E

6.8

PEG

-

PRICE TO SALES

2

PRICE TO BOOK

0.8

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

11.70%

Annual Payout

$0.89

Payout Ratio

76.80%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

-7.30%

Financial Health & Profitability

Earnings Per Share

$1.12

Next Year EPS Growth Estimate

$1.11

Next Year Revenue Growth Estimate

4.70%

Return on Equity (ROE)

7.10%

Operating Margin

42.30%

Debt-to-Equity

3

Piotroski F-Score

5

Altman Z-Score

0

Return on Invested Capital (ROIC)

9.80%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 6.9x earnings and 6.8x forward earnings, the market is clearly pricing ADAM as a no-growth, elevated-risk mortgage REIT, not a compounder. The 0.8x price-to-book suggests discounted asset expectations, but the Altman Z-Score of 0 is a flashing distress signal that overwhelms the superficially cheap multiple. With Return on Equity at just 4.70% and an operating margin of 7.10%, profitability is thin relative to the leverage inherent in mortgage REIT models. This is not a growth story; it is a balance-sheet risk story trading at a low multiple because the market questions durability, not because it has missed explosive upside.

AI Exposure / Tech Reliance

As a mortgage REIT, ADAM’s exposure to AI is indirect and primarily operational rather than transformative. Technology may improve underwriting analytics, portfolio surveillance, and interest-rate modeling, but it does not fundamentally change spread-driven earnings. In a tech-shifting world, resilience will depend more on capital discipline and risk management than digital disruption.

The Bull Case

A value or GARP investor could argue that 6.8x forward earnings combined with a 9.80% ROIC represents a mispriced income vehicle in a stabilized rate environment. The Piotroski F-Score of 5 signals average financial health rather than deterioration, and the 7.10% operating margin shows the business is at least structurally profitable. Trading at 0.8x book with a 3 TTM yield and a stated dividend per share of 11.70%, the setup could appeal to investors seeking discounted cash-generating assets with moderate leverage at 42.30% debt-to-equity. If earnings next year reach the $1.12 estimate, the forward multiple leaves room for re-rating toward book value, creating asymmetric upside for disciplined capital allocators.

The Bear Case

The bear case is dominated by balance-sheet and structural fragility. An Altman Z-Score of 0 is extreme and implies elevated financial distress risk, which is especially concerning in a rate-sensitive mortgage REIT model. ROE at 4.70% is underwhelming relative to leverage of 42.30%, suggesting mediocre spread capture, and the absence of a PEG Forward figure reinforces the lack of visible growth. The Short % of Float at -7.30% is anomalous and, combined with Institutional Ownership % of $8.90, signals questionable positioning and potentially weak sponsorship; this is a stock priced cheaply because the market doubts sustainability, not because it is overlooked.

Market Sentiment & Smart Money

Short Interest %

3.20%

Analyst Consensus

2.14

Average Analyst Price Target

$8.90

Institutional Ownership %

57.50%

1-Year Beta

0.97

Insider Buying % (6 Mo)

7.40%%

Distance to 52-Week High

86.60%%

Distance to 52-Week Low

147.90%%