ELLINGTON FINANCIAL INC (EFC) Stock Fundamental Analysis
NYSE:EFC - US28852N1090 - REIT
13.64 USD
-0.11 (-0.8%)
13.64 USD
0 (0%)
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. Both the profitability and financial health of EFC have multiple concerns. EFC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EFC was profitable.
EFC had a negative operating cash flow in the past year.
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's Return On Assets of 0.66% is fine compared to the rest of the industry. EFC outperforms 74.63% of its industry peers.
Looking at the Return On Equity, with a value of 6.79%, EFC belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 25.40%, EFC belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
EFC's Profit Margin has declined in the last couple of years.
The Gross Margin of EFC (27.60%) 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.
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.
The debt/assets ratio for EFC has remained at the same level compared to a year ago.
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.
EFC has a Altman-Z score of -0.09. This is comparable to the rest of the industry: EFC outperforms 50.75% of its industry peers.
A Debt/Equity ratio of 8.93 is on the high side and indicates that EFC has dependencies on debt financing.
EFC has a Debt to Equity ratio of 8.93. This is amonst the worse of the industry: EFC underperforms 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
WACC2.91%
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.
With a Current ratio value of 0.19, EFC perfoms like the industry average, outperforming 52.24% of the companies in the same industry.
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.
EFC's Quick ratio of 0.19 is in line compared to the rest of the industry. EFC outperforms 52.24% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -4.31% on average over the past years.
Looking at the last year, EFC shows a quite strong growth in Revenue. The Revenue has grown by 12.22% in the last year.
EFC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.07% yearly.
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
EFC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.27% yearly.
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 Year28.79%
Revenue Next 2Y22.13%
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
Based on the Price/Earnings ratio of 7.98, the valuation of EFC can be described as very cheap.
Based on the Price/Earnings ratio, EFC is valued cheaply inside the industry as 82.09% of the companies are valued more expensively.
EFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
Based on the Price/Forward Earnings ratio of 7.57, 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 79.10% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EFC to the average of the S&P500 Index (22.72), we can say EFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 7.57 |
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)0.44
PEG (5Y)N/A
EPS Next 2Y11.09%
EPS Next 3Y6.27%
5. Dividend
5.1 Amount
EFC has a Yearly Dividend Yield of 11.35%, which is a nice return.
Compared to an average industry Dividend Yield of 11.85, EFC has a dividend in line with its industry peers.
EFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.35% |
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
150.94% of the earnings are spent on dividend by EFC. 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%
13.64
-0.11 (-0.8%)
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 Cap1.36B
Analysts78.33
Price Target14.69 (7.7%)
Short Float %6.23%
Short Ratio5.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.35% |
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)0.84%
PT rev (3m)1.69%
EPS NQ rev (1m)7.66%
EPS NQ rev (3m)7.35%
EPS NY rev (1m)4.27%
EPS NY rev (3m)4.27%
Revenue NQ rev (1m)5.23%
Revenue NQ rev (3m)6.23%
Revenue NY rev (1m)2.98%
Revenue NY rev (3m)4.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 7.57 | ||
| P/S | 3.06 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.71
EY12.54%
EPS(NY)1.8
Fwd EY13.21%
FCF(TTM)-6.2
FCFYN/A
OCF(TTM)-6.2
OCFYN/A
SpS4.46
BVpS16.67
TBVpS16.65
PEG (NY)0.44
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
WACC2.91%
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 Year28.79%
Revenue Next 2Y22.13%
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