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%)
EFC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 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 correct valuation and a medium 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 has a Return On Assets of 0.66%. This is in the better half of the industry: EFC outperforms 71.01% of its industry peers.
The Return On Equity of EFC (6.79%) is better than 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
With an excellent Profit Margin value of 25.40%, EFC belongs to the best of the industry, outperforming 88.41% 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 27.60%, EFC is in line with its industry, outperforming 49.28% 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.
The number of shares outstanding for EFC has been increased compared to 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
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 (-0.09) which is comparable to the rest of the industry.
EFC has a Debt/Equity ratio of 8.93. This is a high value indicating a heavy dependency on external 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 has a Current ratio (0.19) which is in line with 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.
The Quick ratio of EFC (0.19) 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
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.
EFC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.31% yearly.
EFC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.38%.
EFC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.07% yearly.
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
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.
The Revenue is expected to grow by 9.65% on average over the next years. This is quite good.
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
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.
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 7.43, the valuation of EFC can be described as very cheap.
82.61% of the companies in the same industry are more expensive than EFC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.37, EFC is valued rather cheaply.
Based on the 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.
When comparing the Price/Forward Earnings ratio of EFC to the average of the S&P500 Index (36.20), we can say EFC is valued rather cheaply.
| 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
EFC has a Yearly Dividend Yield of 6.68%, which is a nice return.
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 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
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%
13.68
+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%.