ELLINGTON CREDIT CO (EARN) Stock Price, Quote, News and Overview
NYSE:EARN - New York Stock Exchange, Inc. - US2885781078 - Currency: USD
Taking everything into account, EARN scores 4 out of 10 in our fundamental rating. EARN was compared to 232 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.
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
EARN's Return On Assets of 0.80% is on the low side compared to the rest of the industry. EARN is outperformed by 68.53% of its industry peers.
EARN's Return On Equity of 3.40% is on the low side compared to the rest of the industry. EARN is outperformed by 65.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.63%, EARN is doing worse than 72.41% of the companies in the same industry.
| 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.
EARN's Profit Margin has declined in the last couple of years.
The Operating Margin of EARN (12.60%) is worse than 70.26% of its industry peers.
EARN's Operating Margin has improved in the last couple of years.
EARN's Gross Margin of 17.78% is on the low side compared to the rest of the industry. EARN is outperformed by 71.55% of its industry peers.
EARN's Gross Margin has improved in the last couple of years.
| 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
EARN has more shares outstanding than it did 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 -0.78, we must say that EARN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.78, EARN is doing worse than 84.48% of the companies in the same industry.
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 has a Debt to FCF ratio (64.26) which is in line with its industry peers.
EARN has a Debt/Equity ratio of 3.02. This is a high value indicating a heavy dependency on external financing.
EARN has a Debt to Equity ratio of 3.02. This is amonst the worse of the industry: EARN underperforms 83.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.02 | ||
| Debt/FCF | 64.26 | ||
| Altman-Z | -0.78 |
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 of 0.12. This is amonst the worse of the industry: EARN underperforms 92.24% of 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 is not doing good in the industry: 91.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
EARN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.17%, which is quite impressive.
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.
EARN shows a strong growth in Revenue. In the last year, 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
EARN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.51% yearly.
The Revenue is expected to grow by 40.64% on average over the next years. This is a very strong growth
EPS Next Y-9.45%
EPS Next 2Y-1.61%
EPS Next 3Y1.51%
EPS Next 5YN/A
Revenue Next Year155.08%
Revenue Next 2Y68.73%
Revenue Next 3Y40.64%
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.
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 4.85 indicates a rather cheap valuation of EARN.
95.26% of the companies in the same industry are more expensive than EARN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EARN to the average of the S&P500 Index (26.32), we can say EARN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.96, the valuation of EARN can be described as very cheap.
Based on the Price/Forward Earnings ratio, EARN is valued cheaper than 96.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, EARN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.85 | ||
| Fwd PE | 4.96 |
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 | 23.37 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.91
EPS Next 2Y-1.61%
EPS Next 3Y1.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 16.64%, EARN is a good candidate for dividend investing.
EARN's Dividend Yield is rather good when compared to the industry average which is at 7.91. EARN pays more dividend than 95.69% 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 | 16.64% |
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.
The dividend of EARN decreased recently.
Dividend Growth(5Y)-5.74%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
337.31% of the earnings are spent on dividend by EARN. This is not a sustainable payout ratio.
DP337.31%
EPS Next 2Y-1.61%
EPS Next 3Y1.51%
5.67
-0.08 (-1.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners22.77%
Inst Owner Change11.9%
Ins Owners0.93%
Ins Owner Change9.14%
Market Cap212.97M
Analysts76
Price Target5.99 (5.64%)
Short Float %1.24%
Short Ratio0.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.64% |
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)0%
PT rev (3m)-18.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)23.73%
Revenue NY rev (1m)15.65%
Revenue NY rev (3m)34.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.85 | ||
| Fwd PE | 4.96 | ||
| P/S | 4.27 | ||
| P/FCF | 23.37 | ||
| P/OCF | 23.37 | ||
| P/B | 1.1 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.17
EY20.63%
EPS(NY)1.14
Fwd EY20.15%
FCF(TTM)0.24
FCFY4.28%
OCF(TTM)0.24
OCFY4.28%
SpS1.33
BVpS5.16
TBVpS5.16
PEG (NY)N/A
PEG (5Y)0.91
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 | -0.78 |
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-9.45%
EPS Next 2Y-1.61%
EPS Next 3Y1.51%
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 2Y68.73%
Revenue Next 3Y40.64%
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%