ELLINGTON FINANCIAL INC (EFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EFC - US28852N1090 - REIT
13.68 USD
+0.07 (+0.51%)
13.705 USD
+0.03 (+0.18%)
Taking everything into account, EFC scores 4 out of 10 in our fundamental rating. EFC was compared to 69 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. EFC may be in some trouble as it scores bad on both profitability and health. EFC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
EFC had positive earnings in the past year.
In the past year EFC has reported a negative cash flow from operations.
EFC had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: EFC reported negative operating cash flow in multiple years.
1.2 Ratios
EFC has a better Return On Assets (0.66%) than 71.01% of its industry peers.
EFC's Return On Equity of 6.79% is amongst the best of the industry. EFC outperforms 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 6.79% | ||
| ROIC | N/A |
ROA(3y)0.17%
ROA(5y)0.69%
ROE(3y)1.46%
ROE(5y)3.21%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
EFC has a Profit Margin of 25.40%. This is amongst the best in the industry. EFC outperforms 88.41% of its industry peers.
EFC's Profit Margin has declined in the last couple of years.
EFC has a Gross Margin (27.60%) which is comparable to the rest of the industry.
EFC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 25.4% | ||
| GM | 27.6% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-26.52%
PM growth 5Y-4.33%
GM growth 3Y-22.86%
GM growth 5Y-10.27%
2. Health
2.1 Basic Checks
EFC does not have a ROIC to compare to the WACC, probably because it is not profitable.
EFC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EFC has been increased compared to 5 years ago.
EFC has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of -0.09, we must say that EFC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.09, EFC is in line with its industry, outperforming 49.28% of the companies in the same industry.
A Debt/Equity ratio of 8.93 is on the high side and indicates that EFC has dependencies on debt financing.
EFC's Debt to Equity ratio of 8.93 is on the low side compared to the rest of the industry. EFC is outperformed by 89.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.93 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.09 |
ROIC/WACCN/A
WACC2.99%
2.3 Liquidity
EFC has a Current Ratio of 0.19. This is a bad value and indicates that EFC is not financially healthy enough and could expect problems in meeting its short term obligations.
EFC's Current ratio of 0.19 is in line compared to the rest of the industry. EFC outperforms 56.52% of its industry peers.
EFC has a Quick Ratio of 0.19. This is a bad value and indicates that EFC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.19, EFC perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
EFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.75%, which is quite impressive.
Measured over the past years, EFC shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.31% on average per year.
Looking at the last year, EFC shows a quite strong growth in Revenue. The Revenue has grown by 12.38% in the last year.
The Revenue has been growing by 21.07% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)43.75%
EPS 3Y-7.42%
EPS 5Y-4.31%
EPS Q2Q%32.5%
Revenue 1Y (TTM)12.38%
Revenue growth 3Y33.33%
Revenue growth 5Y21.07%
Sales Q2Q%47.86%
3.2 Future
The Earnings Per Share is expected to grow by 6.78% on average over the next years.
Based on estimates for the next years, EFC will show a quite strong growth in Revenue. The Revenue will grow by 9.65% on average per year.
EPS Next Y20.25%
EPS Next 2Y11.33%
EPS Next 3Y6.78%
EPS Next 5YN/A
Revenue Next Year29.83%
Revenue Next 2Y18.85%
Revenue Next 3Y9.65%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EFC is valuated cheaply with a Price/Earnings ratio of 7.43.
Based on the Price/Earnings ratio, EFC is valued cheaply inside the industry as 84.06% of the companies are valued more expensively.
EFC is valuated cheaply when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.56, the valuation of EFC can be described as very cheap.
Based on the Price/Forward Earnings ratio, EFC is valued a bit cheaper than the industry average as 72.46% of the companies are valued more expensively.
EFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
EFC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y11.33%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.68%, EFC is a good candidate for dividend investing.
With a Dividend Yield of 6.68, EFC pays less dividend than the industry average, which is at 13.00. 95.65% of the companies listed in the same industry pay a better dividend than EFC!
EFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
5.2 History
The dividend of EFC has a limited annual growth rate of 3.65%.
EFC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)3.65%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EFC pays out 150.94% of its income as dividend. This is not a sustainable payout ratio.
EFC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP150.94%
EPS Next 2Y11.33%
EPS Next 3Y6.78%
13.68
+0.07 (+0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners53.35%
Inst Owner Change-1.25%
Ins Owners2.15%
Ins Owner Change0%
Market Cap1.47B
Revenue(TTM)416.01M
Net Income(TTM)113.14M
Analysts80
Price Target14.92 (9.06%)
Short Float %4.67%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
Yearly Dividend1.88
Dividend Growth(5Y)3.65%
DP150.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.7%
Min EPS beat(2)-1.35%
Max EPS beat(2)16.75%
EPS beat(4)3
Avg EPS beat(4)10.47%
Min EPS beat(4)-1.35%
Max EPS beat(4)17.69%
EPS beat(8)3
Avg EPS beat(8)-5.62%
EPS beat(12)5
Avg EPS beat(12)-4.89%
EPS beat(16)5
Avg EPS beat(16)-5.51%
Revenue beat(2)2
Avg Revenue beat(2)3.63%
Min Revenue beat(2)0.84%
Max Revenue beat(2)6.42%
Revenue beat(4)2
Avg Revenue beat(4)-3.53%
Min Revenue beat(4)-12.65%
Max Revenue beat(4)6.42%
Revenue beat(8)2
Avg Revenue beat(8)-14.22%
Revenue beat(12)5
Avg Revenue beat(12)17.74%
Revenue beat(16)9
Avg Revenue beat(16)24.68%
PT rev (1m)0.65%
PT rev (3m)1.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)-2.08%
Revenue NQ rev (3m)-1.71%
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 7.56 | ||
| P/S | 3.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.84
EY13.45%
EPS(NY)1.81
Fwd EY13.23%
FCF(TTM)-5.77
FCFYN/A
OCF(TTM)-5.77
OCFYN/A
SpS4.15
BVpS15.52
TBVpS15.5
PEG (NY)0.37
PEG (5Y)N/A
Graham Number25.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 6.79% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 25.4% | ||
| GM | 27.6% | ||
| FCFM | N/A |
ROA(3y)0.17%
ROA(5y)0.69%
ROE(3y)1.46%
ROE(5y)3.21%
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 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-26.52%
PM growth 5Y-4.33%
GM growth 3Y-22.86%
GM growth 5Y-10.27%
F-Score4
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.93 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | -0.09 |
F-Score4
WACC2.99%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.03%
Cap/Sales(5y)0.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.75%
EPS 3Y-7.42%
EPS 5Y-4.31%
EPS Q2Q%32.5%
EPS Next Y20.25%
EPS Next 2Y11.33%
EPS Next 3Y6.78%
EPS Next 5YN/A
Revenue 1Y (TTM)12.38%
Revenue growth 3Y33.33%
Revenue growth 5Y21.07%
Sales Q2Q%47.86%
Revenue Next Year29.83%
Revenue Next 2Y18.85%
Revenue Next 3Y9.65%
Revenue Next 5YN/A
EBIT growth 1Y27.29%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-373.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-374.26%
OCF growth 3YN/A
OCF growth 5YN/A
ELLINGTON FINANCIAL INC / EFC FAQ
What is the ChartMill fundamental rating of ELLINGTON FINANCIAL INC (EFC) stock?
ChartMill assigns a fundamental rating of 4 / 10 to EFC.
What is the valuation status for EFC stock?
ChartMill assigns a valuation rating of 6 / 10 to ELLINGTON FINANCIAL INC (EFC). This can be considered as Fairly Valued.
How profitable is ELLINGTON FINANCIAL INC (EFC) stock?
ELLINGTON FINANCIAL INC (EFC) has a profitability rating of 3 / 10.
How financially healthy is ELLINGTON FINANCIAL INC?
The financial health rating of ELLINGTON FINANCIAL INC (EFC) is 1 / 10.
Can you provide the dividend sustainability for EFC stock?
The dividend rating of ELLINGTON FINANCIAL INC (EFC) is 5 / 10 and the dividend payout ratio is 150.94%.