ELLINGTON CREDIT CO (EARN)
US2885781078 - REIT
Taking everything into account, EARN scores 3 out of 10 in our fundamental rating. EARN was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. EARN may be in some trouble as it scores bad on both profitability and health. EARN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
EARN had positive earnings in the past year.
In the past year EARN has reported a negative 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 (0.48%) which is comparable to the rest of the industry.
EARN has a Return On Equity of 3.35%. This is comparable to the rest of the industry: EARN outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 3.35% | ||
| ROIC | N/A |
ROA(3y)-0.93%
ROA(5y)0.08%
ROE(3y)-9.2%
ROE(5y)-0.34%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
EARN's Profit Margin of 10.71% is in line compared to the rest of the industry. EARN outperforms 56.25% of its industry peers.
EARN's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for EARN so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 10.71% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-47.4%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, EARN has more shares outstanding
The number of shares outstanding for EARN has been increased compared to 5 years ago.
Compared to 1 year ago, EARN has an improved debt to assets ratio.
2.2 Solvency
EARN has an Altman-Z score of -0.99. This is a bad value and indicates that EARN is not financially healthy and even has some risk of bankruptcy.
EARN has a Altman-Z score of -0.99. This is amonst the worse of the industry: EARN underperforms 89.06% of its industry peers.
A Debt/Equity ratio of 5.35 is on the high side and indicates that EARN has dependencies on debt financing.
EARN has a worse Debt to Equity ratio (5.35) than 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.99 |
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.
EARN has a Current ratio (0.12) which is in line with its industry peers.
A Quick Ratio of 0.12 indicates that EARN may have some problems paying its short term obligations.
With a Quick ratio value of 0.12, EARN perfoms like the industry average, outperforming 42.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
The earnings per share for EARN have decreased strongly by -18.87% in the last year.
EARN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.49% yearly.
Looking at the last year, EARN shows a very strong growth in Revenue. The Revenue has grown by 21.50%.
EARN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.85% yearly.
EPS 1Y (TTM)-18.87%
EPS 3Y-11.95%
EPS 5Y-8.49%
EPS growth Q2Q8%
Revenue 1Y (TTM)21.5%
Revenue growth 3Y15.91%
Revenue growth 5Y-4.85%
Revenue growth Q2Q19.72%
3.2 Future
The Earnings Per Share is expected to grow by 13.11% on average over the next years. This is quite good.
Based on estimates for the next years, EARN will show a very strong growth in Revenue. The Revenue will grow by 315.44% on average per year.
EPS Next Y27.8%
EPS Next 2Y13%
EPS Next 3Y13.11%
EPS Next 5YN/A
Revenue Next Year2723.71%
Revenue Next 2Y466.96%
Revenue Next 3Y315.45%
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 7.79 indicates a rather cheap valuation of EARN.
Based on the Price/Earnings ratio, EARN is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.67. EARN is valued rather cheaply when compared to this.
EARN is valuated cheaply with a Price/Forward Earnings ratio of 6.10.
89.06% of the companies in the same industry are more expensive than EARN, based on the Price/Forward Earnings ratio.
EARN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.1 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
EARN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EARN's earnings are expected to grow with 13.11% in the coming years.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y13%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.37%, EARN is a good candidate for dividend investing.
EARN's Dividend Yield is a higher than the industry average which is at 13.12.
Compared to an average S&P500 Dividend Yield of 2.40, EARN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.37% |
5.2 History
The dividend of EARN decreases each year by -9.82%.
EARN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-9.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
309.76% of the earnings are spent on dividend by EARN. This is not a sustainable payout ratio.
DP309.76%
EPS Next 2Y13%
EPS Next 3Y13.11%
ELLINGTON CREDIT CO
NYSE:EARN (5/1/2024, 9:59:18 AM)
6.7
+0.09 (+1.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap132.79M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 3.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 10.71% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.87%
EPS 3Y-11.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y27.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.5%
Revenue growth 3Y15.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y