ELLINGTON CREDIT CO (EARN) Stock Price, Quote, News and Overview
NYSE:EARN - New York Stock Exchange, Inc. - US2885781078 - Currency: USD
EARN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. EARN may be in some trouble as it scores bad on both profitability and health. 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
With a Return On Assets value of 0.80%, EARN is not doing good in the industry: 68.24% of the companies in the same industry are doing better.
EARN's Return On Equity of 3.40% is on the low side compared to the rest of the industry. EARN is outperformed by 64.81% of its industry peers.
The Return On Invested Capital of EARN (0.63%) is worse than 72.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 3.4% | ||
| ROIC | 0.63% |
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
EARN has a Profit Margin (13.21%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of EARN has declined.
With a Operating Margin value of 12.60%, EARN is not doing good in the industry: 69.96% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of EARN has grown nicely.
EARN has a Gross Margin of 17.78%. This is in the lower half of the industry: EARN underperforms 71.24% of its industry peers.
In the last couple of years the Gross Margin of EARN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.6% | ||
| PM (TTM) | 13.21% | ||
| GM | 17.78% |
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
Compared to 1 year ago, EARN has more shares outstanding
Compared to 5 years ago, EARN has more shares outstanding
The debt/assets ratio for EARN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.77, we must say that EARN is in the distress zone and has some risk of bankruptcy.
EARN has a worse Altman-Z score (-0.77) than 84.55% of its industry peers.
The Debt to FCF ratio of EARN is 64.26, which is on the high side as it means it would take EARN, 64.26 years of fcf income to pay off all of its debts.
EARN's Debt to FCF ratio of 64.26 is in line compared to the rest of the industry. EARN outperforms 41.63% of its industry peers.
A Debt/Equity ratio of 3.02 is on the high side and indicates that EARN has dependencies on debt financing.
EARN's Debt to Equity ratio of 3.02 is on the low side compared to the rest of the industry. EARN is outperformed by 82.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.02 | ||
| Debt/FCF | 64.26 | ||
| Altman-Z | -0.77 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.12 indicates that EARN may have some problems paying its short term obligations.
With a Current ratio value of 0.12, EARN is not doing good in the industry: 92.27% of the companies in the same industry are doing better.
EARN has a Quick Ratio of 0.12. This is a bad value and indicates that EARN is not financially healthy enough and could expect problems in meeting its short term obligations.
EARN's Quick ratio of 0.12 is on the low side compared to the rest of the industry. EARN is outperformed by 91.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.17% over the past year.
Measured over the past 5 years, EARN shows a small growth in Earnings Per Share. The EPS has been growing by 5.33% on average per year.
Looking at the last year, EARN shows a very strong growth in Revenue. The Revenue has grown by 26.06%.
Measured over the past years, EARN shows a small growth in Revenue. The Revenue has been growing by 2.60% on average per year.
EPS 1Y (TTM)27.17%
EPS 3Y-2.42%
EPS 5Y5.33%
EPS Q2Q%-3.7%
Revenue 1Y (TTM)26.06%
Revenue growth 3Y20.7%
Revenue growth 5Y2.6%
Sales Q2Q%3214.34%
3.2 Future
Based on estimates for the next years, EARN will show a small growth in Earnings Per Share. The EPS will grow by 1.79% on average per year.
The Revenue is expected to grow by 53.62% on average over the next years. This is a very strong growth
EPS Next Y-18.46%
EPS Next 2Y-4.5%
EPS Next 3Y1.79%
EPS Next 5YN/A
Revenue Next Year155.08%
Revenue Next 2Y73.95%
Revenue Next 3Y53.62%
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 decreasing.
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
The Price/Earnings ratio is 5.09, which indicates a rather cheap valuation of EARN.
Based on the Price/Earnings ratio, EARN is valued cheaply inside the industry as 94.85% of the companies are valued more expensively.
EARN is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.53 indicates a rather cheap valuation of EARN.
Based on the Price/Forward Earnings ratio, EARN is valued cheaply inside the industry as 96.57% of the companies are valued more expensively.
EARN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.09 | ||
| Fwd PE | 5.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EARN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.53 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y-4.5%
EPS Next 3Y1.79%
5. Dividend
5.1 Amount
EARN has a Yearly Dividend Yield of 16.22%, which is a nice return.
EARN's Dividend Yield is rather good when compared to the industry average which is at 8.12. EARN pays more dividend than 94.42% of the companies in the same industry.
EARN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.22% |
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.
The dividend of EARN decreased recently.
Dividend Growth(5Y)-5.74%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
EARN pays out 337.31% of its income as dividend. This is not a sustainable payout ratio.
DP337.31%
EPS Next 2Y-4.5%
EPS Next 3Y1.79%
5.95
+0.03 (+0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners22.77%
Inst Owner Change0%
Ins Owners0.93%
Ins Owner Change2.02%
Market Cap223.48M
Analysts76
Price Target6.12 (2.86%)
Short Float %0.56%
Short Ratio0.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.22% |
Yearly Dividend0.92
Dividend Growth(5Y)-5.74%
DP337.31%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.86%
Min EPS beat(2)-11.76%
Max EPS beat(2)-1.96%
EPS beat(4)2
Avg EPS beat(4)4.21%
Min EPS beat(4)-11.76%
Max EPS beat(4)23.84%
EPS beat(8)3
Avg EPS beat(8)-2.71%
EPS beat(12)5
Avg EPS beat(12)-0.49%
EPS beat(16)6
Avg EPS beat(16)-1.38%
Revenue beat(2)0
Avg Revenue beat(2)-13.65%
Min Revenue beat(2)-16.2%
Max Revenue beat(2)-11.11%
Revenue beat(4)0
Avg Revenue beat(4)-31.81%
Min Revenue beat(4)-92.48%
Max Revenue beat(4)-7.46%
Revenue beat(8)0
Avg Revenue beat(8)-95.82%
Revenue beat(12)4
Avg Revenue beat(12)-34.78%
Revenue beat(16)7
Avg Revenue beat(16)-20.01%
PT rev (1m)2.13%
PT rev (3m)-17.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.88%
EPS NY rev (1m)-9.94%
EPS NY rev (3m)-9.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)11.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.09 | ||
| Fwd PE | 5.53 | ||
| P/S | 4.48 | ||
| P/FCF | 24.53 | ||
| P/OCF | 24.53 | ||
| P/B | 1.15 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.17
EY19.66%
EPS(NY)1.08
Fwd EY18.09%
FCF(TTM)0.24
FCFY4.08%
OCF(TTM)0.24
OCFY4.08%
SpS1.33
BVpS5.16
TBVpS5.16
PEG (NY)N/A
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 3.4% | ||
| ROCE | 3.15% | ||
| ROIC | 0.63% | ||
| ROICexc | 0.66% | ||
| ROICexgc | 0.7% | ||
| OM | 12.6% | ||
| PM (TTM) | 13.21% | ||
| GM | 17.78% | ||
| FCFM | 18.27% |
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-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.02 | ||
| Debt/FCF | 64.26 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.18 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 138.35% | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | -0.77 |
F-Score7
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)27.17%
EPS 3Y-2.42%
EPS 5Y5.33%
EPS Q2Q%-3.7%
EPS Next Y-18.46%
EPS Next 2Y-4.5%
EPS Next 3Y1.79%
EPS Next 5YN/A
Revenue 1Y (TTM)26.06%
Revenue growth 3Y20.7%
Revenue growth 5Y2.6%
Sales Q2Q%3214.34%
Revenue Next Year155.08%
Revenue Next 2Y73.95%
Revenue Next 3Y53.62%
Revenue Next 5YN/A
EBIT growth 1Y176.21%
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%