ELLINGTON FINANCIAL INC (EFC) Stock Fundamental Analysis
USA - NYSE:EFC - US28852N1090 - REIT
13.69 USD
+0.21 (+1.56%)
13.65 USD
-0.04 (-0.29%)
Overall EFC gets a fundamental rating of 4 out of 10. We evaluated EFC against 68 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
EFC had positive earnings in the past year.
EFC had a negative operating cash flow in the past year.
EFC had positive earnings in 4 of the past 5 years.
In multiple years EFC reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.66%, EFC is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
The Return On Equity of EFC (6.79%) is better than 92.65% 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
Looking at the Profit Margin, with a value of 25.40%, EFC belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
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 52.94% of the companies in the same 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.
Compared to 5 years ago, EFC has more shares outstanding
Compared to 1 year ago, EFC has about the same debt to assets ratio.
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.
EFC has a Altman-Z score of -0.09. This is comparable to the rest of the industry: EFC outperforms 52.94% of its industry peers.
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 89.71% 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
A Current Ratio of 0.19 indicates that EFC may have some problems paying its short term obligations.
EFC's Current ratio of 0.19 is in line compared to the rest of the industry. EFC outperforms 54.41% 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.
EFC has a Quick ratio (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.32% over the past year.
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 12.22% 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)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 6.78% on average per year.
EFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.65% yearly.
EPS Next Y20.25%
EPS Next 2Y11.33%
EPS Next 3Y6.78%
EPS Next 5YN/A
Revenue Next Year31.62%
Revenue Next 2Y21.14%
Revenue Next 3Y9.65%
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.
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
With a Price/Earnings ratio of 8.01, the valuation of EFC can be described as very reasonable.
EFC's Price/Earnings ratio is a bit cheaper when compared to the industry. EFC is cheaper than 79.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of EFC to the average of the S&P500 Index (26.03), we can say EFC is valued rather cheaply.
EFC is valuated cheaply with a Price/Forward Earnings ratio of 7.57.
Based on the Price/Forward Earnings ratio, EFC is valued a bit cheaper than the industry average as 72.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, EFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.01 | ||
| 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)0.4
PEG (5Y)N/A
EPS Next 2Y11.33%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.65%, EFC is a good candidate for dividend investing.
EFC's Dividend Yield is slightly below the industry average, which is at 13.23.
Compared to an average S&P500 Dividend Yield of 2.38, EFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.65% |
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.
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%
13.69
+0.21 (+1.56%)
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-5.14%
Ins Owners2.15%
Ins Owner Change0%
Market Cap1.37B
Revenue(TTM)445.41M
Net Income(TTM)113.14M
Analysts80
Price Target14.85 (8.47%)
Short Float %5.09%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.65% |
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)0.22%
PT rev (3m)1.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.66%
EPS NY rev (1m)1.46%
EPS NY rev (3m)6.1%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)5.62%
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)5.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.01 | ||
| Fwd PE | 7.57 | ||
| P/S | 3.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.71
EY12.49%
EPS(NY)1.81
Fwd EY13.22%
FCF(TTM)-6.2
FCFYN/A
OCF(TTM)-6.2
OCFYN/A
SpS4.46
BVpS16.67
TBVpS16.65
PEG (NY)0.4
PEG (5Y)N/A
Graham Number25.33
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
WACC2.91%
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 Y20.25%
EPS Next 2Y11.33%
EPS Next 3Y6.78%
EPS Next 5YN/A
Revenue 1Y (TTM)12.22%
Revenue growth 3Y33.33%
Revenue growth 5Y21.07%
Sales Q2Q%29.01%
Revenue Next Year31.62%
Revenue Next 2Y21.14%
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 5 / 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%.