ELLINGTON CREDIT CO (EARN) Stock Overview
NYSE:EARN - US2885781078
5.84 USD
-0.04 (-0.68%)
We assign a fundamental rating of 3 out of 10 to EARN. EARN was compared to 238 industry peers in the Capital Markets industry. Both the profitability and financial health of EARN have multiple concerns. EARN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EARN was profitable.
In the past year EARN had a positive cash flow from operations.
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
EARN has a Return On Assets of -0.67%. This is in the lower half of the industry: EARN underperforms 76.89% of its industry peers.
EARN's Return On Equity of -2.30% is on the low side compared to the rest of the industry. EARN is outperformed by 75.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.74%, EARN is doing worse than 65.55% of the companies in the same industry.
| 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.
The Operating Margin of EARN (26.02%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EARN has grown nicely.
EARN has a worse Gross Margin (31.11%) than 69.33% of its industry peers.
In the last couple of years the Gross Margin of EARN has grown nicely.
| 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
EARN has more shares outstanding than it did 1 year ago.
EARN has more shares outstanding than it did 5 years ago.
EARN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.74, we must say that EARN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EARN (-0.74) is worse than 80.25% of its industry peers.
The Debt to FCF ratio of EARN is 56.80, which is on the high side as it means it would take EARN, 56.80 years of fcf income to pay off all of its debts.
EARN's Debt to FCF ratio of 56.80 is in line compared to the rest of the industry. EARN outperforms 43.28% of its industry peers.
EARN has a Debt/Equity ratio of 2.26. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.26, EARN is doing worse than 80.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 56.8 | ||
| Altman-Z | -0.74 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.05 indicates that EARN may have some problems paying its short term obligations.
EARN has a Current ratio of 0.05. This is amonst the worse of the industry: EARN underperforms 94.12% of its industry peers.
A Quick Ratio of 0.05 indicates that EARN may have some problems paying its short term obligations.
With a Quick ratio value of 0.05, EARN is not doing good in the industry: 94.12% of the companies in the same industry are doing better.
| 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
Looking at the last year, EARN shows a quite strong growth in Revenue. The Revenue has grown by 10.15% in the last year.
The Revenue has been growing slightly by 2.60% on average over the past years.
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
The Earnings Per Share is expected to grow by 13.52% on average over the next years. This is quite good.
Based on estimates for the next years, EARN will show a quite strong growth in Revenue. The Revenue will grow by 18.76% on average per year.
EPS Next Y11.44%
EPS Next 2Y13.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year18.59%
Revenue Next 2Y18.76%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
EARN is valuated quite expensively with a Price/Earnings ratio of 30.74.
Based on the Price/Earnings ratio, EARN is valued a bit more expensive than 69.75% of the companies in the same industry.
EARN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.08.
With a Price/Forward Earnings ratio of 4.69, the valuation of EARN can be described as very cheap.
Based on the Price/Forward Earnings ratio, EARN is valued cheaply inside the industry as 95.80% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EARN to the average of the S&P500 Index (22.67), we can say EARN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.74 | ||
| Fwd PE | 4.69 |
4.2 Price Multiples
EARN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.07 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EARN does not grow enough to justify the current Price/Earnings ratio.
EARN's earnings are expected to grow with 13.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.69
PEG (5Y)N/A
EPS Next 2Y13.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EARN has a Yearly Dividend Yield of 16.55%, which is a nice return.
Compared to an average industry Dividend Yield of 7.99, EARN pays a better dividend. On top of this EARN pays more dividend than 93.28% of the companies listed in the same industry.
EARN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.55% |
5.2 History
The dividend of EARN decreases each year by -5.74%.
EARN has paid a dividend for at least 10 years, which is 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 2Y13.52%
EPS Next 3YN/A
NYSE:EARN (8/27/2025, 11:18:43 AM)
5.84
-0.04 (-0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners22.7%
Inst Owner Change-40.08%
Ins Owners0.93%
Ins Owner Change2.02%
Market Cap219.35M
Analysts76
Price Target6.25 (7.02%)
Short Float %0.96%
Short Ratio1.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.55% |
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)27.46%
Min Revenue beat(2)21.21%
Max Revenue beat(2)33.72%
Revenue beat(4)2
Avg Revenue beat(4)10.99%
Min Revenue beat(4)-7.87%
Max Revenue beat(4)33.72%
Revenue beat(8)2
Avg Revenue beat(8)-10.41%
Revenue beat(12)2
Avg Revenue beat(12)-60.22%
Revenue beat(16)6
Avg Revenue beat(16)-33.52%
PT rev (1m)0%
PT rev (3m)4.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.8%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.3%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)18.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.74 | ||
| Fwd PE | 4.69 | ||
| P/S | 3.99 | ||
| P/FCF | 24.07 | ||
| P/OCF | 24.07 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.19
EY3.25%
EPS(NY)1.24
Fwd EY21.31%
FCF(TTM)0.24
FCFY4.15%
OCF(TTM)0.24
OCFY4.15%
SpS1.46
BVpS6.08
TBVpS6.08
PEG (NY)2.69
PEG (5Y)N/A
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
ROICexcg growth 3Y-20.19%
ROICexcg 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 | -0.74 |
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 Y11.44%
EPS Next 2Y13.52%
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 Year18.59%
Revenue Next 2Y18.76%
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%