ELLINGTON FINANCIAL INC (EFC)
US28852N1090 - REIT
Overall EFC gets a fundamental rating of 4 out of 10. We evaluated EFC against 64 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 priced too expensively while it is growing strongly. Keep and eye on this one!
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.
Of the past 5 years EFC 4 years had a positive operating cash flow.
1.2 Ratios
EFC's Return On Assets of 0.40% is in line compared to the rest of the industry. EFC outperforms 50.00% of its industry peers.
Looking at the Return On Equity, with a value of 4.01%, EFC is in line with its industry, outperforming 57.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 4.01% | ||
| ROIC | N/A |
ROA(3y)0.74%
ROA(5y)0.8%
ROE(3y)2.2%
ROE(5y)3.07%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 16.45%, EFC is doing good in the industry, outperforming 68.75% of the companies in the same industry.
EFC's Profit Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.58%, EFC is doing worse than 65.63% 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) | 16.45% | ||
| GM | 23.58% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y18.39%
PM growth 5Y-13.81%
GM growth 3Y-24.87%
GM growth 5Y-14.18%
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
EFC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.17, we must say that EFC is in the distress zone and has some risk of bankruptcy.
EFC's Altman-Z score of -0.17 is in line compared to the rest of the industry. EFC outperforms 46.88% of its industry peers.
EFC has a Debt/Equity ratio of 8.79. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EFC (8.79) is worse than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.17 |
ROIC/WACCN/A
WACC2.67%
2.3 Liquidity
A Current Ratio of 0.24 indicates that EFC may have some problems paying its short term obligations.
EFC has a Current ratio (0.24) which is in line with its industry peers.
EFC has a Quick Ratio of 0.24. 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 0.24 is in line compared to the rest of the industry. EFC outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
EFC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.37%.
The Earnings Per Share has been decreasing by -1.73% on average over the past years.
EFC shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.17%.
Measured over the past years, EFC shows a very strong growth in Revenue. The Revenue has been growing by 22.35% on average per year.
EPS 1Y (TTM)-14.37%
EPS 3Y-4.27%
EPS 5Y-1.73%
EPS growth Q2Q-35.71%
Revenue 1Y (TTM)31.17%
Revenue growth 3Y28.74%
Revenue growth 5Y22.35%
Revenue growth Q2Q9.86%
3.2 Future
The Earnings Per Share is expected to grow by 6.29% on average over the next years.
Based on estimates for the next years, EFC will show a very strong growth in Revenue. The Revenue will grow by 38.58% on average per year.
EPS Next Y12.58%
EPS Next 2Y9.9%
EPS Next 3Y6.29%
EPS Next 5YN/A
Revenue Next Year-2.29%
Revenue Next 2Y13.49%
Revenue Next 3Y38.58%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.19, the valuation of EFC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EFC indicates a somewhat cheap valuation: EFC is cheaper than 70.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EFC to the average of the S&P500 Index (24.84), we can say EFC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.27, the valuation of EFC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EFC indicates a somewhat cheap valuation: EFC is cheaper than 78.13% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.35. EFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 7.27 |
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)0.65
PEG (5Y)N/A
EPS Next 2Y9.9%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
EFC has a Yearly Dividend Yield of 13.45%, which is a nice return.
Compared to an average industry Dividend Yield of 13.17, EFC pays a bit more dividend than its industry peers.
EFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.45% |
5.2 History
The dividend of EFC has a limited annual growth rate of 4.09%.
EFC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EFC pays out 245.08% 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.
DP245.08%
EPS Next 2Y9.9%
EPS Next 3Y6.29%
ELLINGTON FINANCIAL INC
NYSE:EFC (4/26/2024, 7:04:00 PM)
After market: 11.7495 +0.04 (+0.34%)11.71
+0.11 (+0.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap996.05M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.45% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 7.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 4.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 16.45% | ||
| GM | 23.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-14.37%
EPS 3Y-4.27%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)31.17%
Revenue growth 3Y28.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y