ELLINGTON FINANCIAL INC (EFC) Stock Fundamental Analysis
USA - NYSE:EFC - US28852N1090 - REIT
12.98 USD
-0.19 (-1.44%)
13 USD
+0.02 (+0.15%)
Taking everything into account, EFC scores 4 out of 10 in our fundamental rating. EFC was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. EFC has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
Of the past 5 years EFC 4 years were profitable.
In multiple years EFC reported negative operating cash flow during the last 5 years.
1.2 Ratios
EFC has a Return On Assets of 0.66%. This is in the better half of the industry: EFC outperforms 74.63% of its industry peers.
The Return On Equity of EFC (6.79%) is better than 92.54% 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
The Profit Margin of EFC (25.40%) is better than 92.54% of its industry peers.
EFC's Profit Margin has declined in the last couple of years.
With a Gross Margin value of 27.60%, EFC perfoms like the industry average, outperforming 58.21% of the companies in the same industry.
In the last couple of years the Gross Margin of EFC has declined.
| 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.
Compared to 1 year ago, EFC has more shares outstanding
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
EFC has an Altman-Z score of -0.09. This is a bad value and indicates that EFC is not financially healthy and even 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 50.75% of the companies in the same industry.
EFC has a Debt/Equity ratio of 8.93. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EFC (8.93) is worse than 89.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.93 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.09 |
ROIC/WACCN/A
WACC2.85%
2.3 Liquidity
A Current Ratio of 0.19 indicates that EFC may have some problems paying its short term obligations.
EFC has a Current ratio (0.19) which is comparable to the rest of the industry.
A Quick Ratio of 0.19 indicates that EFC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.19, EFC is in line with its industry, outperforming 52.24% 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 41.32%, 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.
EFC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.22%.
Measured over the past years, EFC shows a very strong growth in Revenue. The Revenue has been growing by 21.07% on average per year.
EPS 1Y (TTM)41.32%
EPS 3Y-7.42%
EPS 5Y-4.31%
EPS Q2Q%42.42%
Revenue 1Y (TTM)12.22%
Revenue growth 3Y33.33%
Revenue growth 5Y21.07%
Sales Q2Q%29.01%
3.2 Future
Based on estimates for the next years, EFC will show a small growth in Earnings Per Share. The EPS will grow by 6.27% on average per year.
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 Y18.18%
EPS Next 2Y11.09%
EPS Next 3Y6.27%
EPS Next 5YN/A
Revenue Next Year33.44%
Revenue Next 2Y20%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.59 indicates a rather cheap valuation of EFC.
83.58% of the companies in the same industry are more expensive than EFC, based on the Price/Earnings ratio.
EFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 7.20, the valuation of EFC can be described as very cheap.
79.10% of the companies in the same industry are more expensive than EFC, based on the Price/Forward Earnings ratio.
EFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 7.2 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y11.09%
EPS Next 3Y6.27%
5. Dividend
5.1 Amount
EFC has a Yearly Dividend Yield of 11.79%, which is a nice return.
EFC's Dividend Yield is a higher than the industry average which is at 10.94.
Compared to an average S&P500 Dividend Yield of 2.38, EFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.79% |
5.2 History
The dividend of EFC has a limited annual growth rate of 3.65%.
EFC has paid a dividend for at least 10 years, which is 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.
The dividend of EFC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP150.94%
EPS Next 2Y11.09%
EPS Next 3Y6.27%
12.98
-0.19 (-1.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners53.77%
Inst Owner Change4.24%
Ins Owners2.28%
Ins Owner Change0%
Market Cap1.30B
Analysts80
Price Target14.82 (14.18%)
Short Float %5.25%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.79% |
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)1.72%
PT rev (3m)1.72%
EPS NQ rev (1m)1%
EPS NQ rev (3m)6.05%
EPS NY rev (1m)0%
EPS NY rev (3m)4.27%
Revenue NQ rev (1m)3.61%
Revenue NQ rev (3m)6.76%
Revenue NY rev (1m)3.61%
Revenue NY rev (3m)6.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 7.2 | ||
| P/S | 2.91 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.71
EY13.17%
EPS(NY)1.8
Fwd EY13.88%
FCF(TTM)-6.2
FCFYN/A
OCF(TTM)-6.2
OCFYN/A
SpS4.46
BVpS16.67
TBVpS16.65
PEG (NY)0.42
PEG (5Y)N/A
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
ROICexcg growth 3YN/A
ROICexcg 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
WACC2.85%
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)41.32%
EPS 3Y-7.42%
EPS 5Y-4.31%
EPS Q2Q%42.42%
EPS Next Y18.18%
EPS Next 2Y11.09%
EPS Next 3Y6.27%
EPS Next 5YN/A
Revenue 1Y (TTM)12.22%
Revenue growth 3Y33.33%
Revenue growth 5Y21.07%
Sales Q2Q%29.01%
Revenue Next Year33.44%
Revenue Next 2Y20%
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