ELLINGTON CREDIT CO (EARN) Stock Price, Forecast & Analysis
USA - New York Stock Exchange - NYSE:EARN - US2885781078
5.42 USD
-0.09 (-1.63%)
5.4 USD
-0.02 (-0.37%)
EARN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. EARN has a bad profitability rating. Also its financial health evaluation is rather negative. EARN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EARN was profitable.
EARN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: EARN reported negative net income in multiple years.
EARN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of EARN (-0.67%) is worse than 75.95% of its industry peers.
The Return On Equity of EARN (-2.30%) is worse than 74.68% of its industry peers.
EARN has a Return On Invested Capital of 1.74%. This is in the lower half of the industry: EARN underperforms 63.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.67% | ||
| ROE | -2.3% | ||
| ROIC | 1.74% |
ROA(3y)-0.53%
ROA(5y)-0.06%
ROE(3y)-6.71%
ROE(5y)-2.43%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of EARN has declined.
EARN has a Operating Margin (26.02%) which is in line with its industry peers.
In the last couple of years the Operating Margin of EARN has grown nicely.
EARN has a worse Gross Margin (31.11%) than 65.40% of its industry peers.
EARN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.02% | ||
| PM (TTM) | N/A | ||
| GM | 31.11% |
OM growth 3Y-43.57%
OM growth 5Y11%
PM growth 3YN/A
PM growth 5Y-23.61%
GM growth 3Y-38.4%
GM growth 5Y9.83%
2. Health
2.1 Basic Checks
The number of shares outstanding for EARN has been increased compared to 1 year ago.
EARN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EARN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.76, we must say that EARN is in the distress zone and has some risk of bankruptcy.
EARN has a worse Altman-Z score (-0.76) than 81.43% of its industry peers.
EARN has a debt to FCF ratio of 56.80. This is a negative value and a sign of low solvency as EARN would need 56.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 56.80, EARN is in line with its industry, outperforming 45.99% of the companies in the same industry.
A Debt/Equity ratio of 2.26 is on the high side and indicates that EARN has dependencies on debt financing.
EARN has a Debt to Equity ratio of 2.26. This is amonst the worse of the industry: EARN underperforms 81.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 56.8 | ||
| Altman-Z | -0.76 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
EARN has a Current Ratio of 0.05. This is a bad value and indicates that EARN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.05, EARN is doing worse than 94.94% of the companies in the same industry.
A Quick Ratio of 0.05 indicates that EARN may have some problems paying its short term obligations.
The Quick ratio of EARN (0.05) is worse than 94.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
EARN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.20%, which is quite good.
The earnings per share for EARN have been decreasing by -31.03% on average. This is quite bad
EARN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.15%.
EARN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.60% yearly.
EPS 1Y (TTM)19.2%
EPS 3YN/A
EPS 5Y-31.03%
EPS Q2Q%779.25%
Revenue 1Y (TTM)10.15%
Revenue growth 3Y20.7%
Revenue growth 5Y2.6%
Sales Q2Q%26.2%
3.2 Future
EARN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.18% yearly.
EARN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.39% yearly.
EPS Next Y14.45%
EPS Next 2Y10.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.93%
Revenue Next 2Y16.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.53 indicates a quite expensive valuation of EARN.
EARN's Price/Earnings ratio is a bit more expensive when compared to the industry. EARN is more expensive than 71.73% of the companies in the same industry.
EARN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
EARN is valuated cheaply with a Price/Forward Earnings ratio of 5.06.
EARN's Price/Forward Earnings ratio is rather cheap when compared to the industry. EARN is cheaper than 95.78% of the companies in the same industry.
EARN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 5.06 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as EARN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.34 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.97
PEG (5Y)N/A
EPS Next 2Y10.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EARN has a Yearly Dividend Yield of 17.91%, which is a nice return.
EARN's Dividend Yield is rather good when compared to the industry average which is at 8.60. EARN pays more dividend than 92.41% of the companies in the same industry.
EARN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.91% |
5.2 History
The dividend of EARN decreases each year by -5.74%.
EARN has been paying a dividend for at least 10 years, so it has a reliable track record.
EARN has decreased its dividend recently.
Dividend Growth(5Y)-5.74%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of EARN are negative and hence is the payout ratio. EARN will probably not be able to sustain this dividend level.
DP-423.55%
EPS Next 2Y10.18%
EPS Next 3YN/A
5.42
-0.09 (-1.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners13.11%
Inst Owner Change-16.64%
Ins Owners0.94%
Ins Owner Change1.75%
Market Cap203.58M
Revenue(TTM)52.48M
Net Income(TTM)-5.25M
Analysts76
Price Target5.99 (10.52%)
Short Float %0.96%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.91% |
Yearly Dividend0.92
Dividend Growth(5Y)-5.74%
DP-423.55%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)35.2%
Min Revenue beat(2)25.47%
Max Revenue beat(2)44.92%
Revenue beat(4)2
Avg Revenue beat(4)14.86%
Min Revenue beat(4)-7.86%
Max Revenue beat(4)44.92%
Revenue beat(8)2
Avg Revenue beat(8)-8.47%
Revenue beat(12)2
Avg Revenue beat(12)-58.93%
Revenue beat(16)6
Avg Revenue beat(16)-32.55%
PT rev (1m)-4.08%
PT rev (3m)-4.08%
EPS NQ rev (1m)-6.53%
EPS NQ rev (3m)-6.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.16%
Revenue NQ rev (1m)-10.4%
Revenue NQ rev (3m)-10.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 5.06 | ||
| P/S | 3.7 | ||
| P/FCF | 22.34 | ||
| P/OCF | 22.34 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.19
EY3.51%
EPS(NY)1.07
Fwd EY19.76%
FCF(TTM)0.24
FCFY4.48%
OCF(TTM)0.24
OCFY4.48%
SpS1.46
BVpS6.08
TBVpS6.08
PEG (NY)1.97
PEG (5Y)N/A
Graham Number5.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.67% | ||
| ROE | -2.3% | ||
| ROCE | 6.23% | ||
| ROIC | 1.74% | ||
| ROICexc | 1.78% | ||
| ROICexgc | 1.78% | ||
| OM | 26.02% | ||
| PM (TTM) | N/A | ||
| GM | 31.11% | ||
| FCFM | 16.58% |
ROA(3y)-0.53%
ROA(5y)-0.06%
ROE(3y)-6.71%
ROE(5y)-2.43%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-20.19%
ROICexgc growth 5Y30.77%
ROICexc growth 3Y-18.96%
ROICexc growth 5Y29.4%
OM growth 3Y-43.57%
OM growth 5Y11%
PM growth 3YN/A
PM growth 5Y-23.61%
GM growth 3Y-38.4%
GM growth 5Y9.83%
F-Score5
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 56.8 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.4 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.76 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.2%
EPS 3YN/A
EPS 5Y-31.03%
EPS Q2Q%779.25%
EPS Next Y14.45%
EPS Next 2Y10.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.15%
Revenue growth 3Y20.7%
Revenue growth 5Y2.6%
Sales Q2Q%26.2%
Revenue Next Year15.93%
Revenue Next 2Y16.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y280.64%
EBIT growth 3Y-31.89%
EBIT growth 5Y13.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y190.92%
FCF growth 3Y-31.12%
FCF growth 5Y-12.27%
OCF growth 1Y190.92%
OCF growth 3Y-31.12%
OCF growth 5Y-12.27%
ELLINGTON CREDIT CO / EARN FAQ
What does ELLINGTON CREDIT CO do?
Ellington Credit Co. is a real estate investment trust, which engages in the acquisition, investment, and management of residential mortgage and real estate-related assets. The company is headquartered in Old Greenwich, Connecticut and currently employs 160 full-time employees. The company went IPO on 2013-01-05. The firm is focused on acquiring, investing in, and managing secondary collateralized loan obligations (CLO) mezzanine debt and equity tranches. The company specializes in acquiring, investing in, and managing residential mortgage- and real estate-related assets. The firm's primary objective is to generate attractive risk-adjusted total returns for its shareholders by making investments in multiple parts of the CLO capital structure, including mezzanine debt and equity tranches. Additionally, it may also invest in CLO loan accumulation facilities, which are entities that acquire corporate loans and other similar corporate credit-related assets in anticipation of ultimately collateralizing a CLO transaction, as well as other related assets. The company is externally managed and advised by Ellington Credit Company Management LLC.
Can you provide the latest stock price for ELLINGTON CREDIT CO?
The current stock price of EARN is 5.42 USD. The price decreased by -1.63% in the last trading session.
What is the ChartMill technical and fundamental rating of EARN stock?
EARN has a ChartMill Technical rating of 2 out of 10 and a ChartMill Fundamental rating of 3 out of 10.