ELLINGTON CREDIT CO (EARN) Fundamental Analysis & Valuation
NYSE:EARN • US2885781078
Current stock price
4.68 USD
-0.08 (-1.68%)
At close:
4.71 USD
+0.03 (+0.64%)
After Hours:
This EARN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. EARN Profitability Analysis
1.1 Basic Checks
- In the past year EARN was profitable.
- In the past year EARN had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: EARN reported negative net income in multiple years.
- EARN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- EARN has a Return On Assets (3.56%) which is in line with its industry peers.
- The Return On Equity of EARN (6.58%) is comparable to the rest of the industry.
- EARN has a Return On Invested Capital of 7.19%. This is in the better half of the industry: EARN outperforms 74.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 6.58% | ||
| ROIC | 7.19% |
ROA(3y)-0.53%
ROA(5y)-0.06%
ROE(3y)-6.71%
ROE(5y)-2.43%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- EARN has a Profit Margin (22.51%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of EARN has declined.
- The Operating Margin of EARN (48.72%) is better than 86.19% of its industry peers.
- In the last couple of years the Operating Margin of EARN has grown nicely.
- With a decent Gross Margin value of 57.37%, EARN is doing good in the industry, outperforming 65.27% of the companies in the same industry.
- EARN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.72% | ||
| PM (TTM) | 22.51% | ||
| GM | 57.37% |
OM growth 3Y-43.57%
OM growth 5Y11%
PM growth 3YN/A
PM growth 5Y-23.61%
GM growth 3Y-38.4%
GM growth 5Y9.83%
2. EARN Health Analysis
2.1 Basic Checks
- The number of shares outstanding for EARN has been increased compared to 1 year ago.
- Compared to 5 years ago, EARN has more shares outstanding
- The debt/assets ratio for EARN has been reduced compared to a year ago.
2.2 Solvency
- EARN has an Altman-Z score of -0.05. This is a bad value and indicates that EARN is not financially healthy and even has some risk of bankruptcy.
- EARN's Altman-Z score of -0.05 is on the low side compared to the rest of the industry. EARN is outperformed by 78.66% of its industry peers.
- EARN has a debt to FCF ratio of 0.48. This is a very positive value and a sign of high solvency as it would only need 0.48 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.48, EARN belongs to the best of the industry, outperforming 91.63% of the companies in the same industry.
- EARN has a Debt/Equity ratio of 0.78. This is a neutral value indicating EARN is somewhat dependend on debt financing.
- EARN has a better Debt to Equity ratio (0.78) than 60.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | -0.05 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.18 indicates that EARN may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.18, EARN is doing worse than 89.54% of the companies in the same industry.
- A Quick Ratio of 0.18 indicates that EARN may have some problems paying its short term obligations.
- EARN's Quick ratio of 0.18 is on the low side compared to the rest of the industry. EARN is outperformed by 89.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. EARN Growth Analysis
3.1 Past
- EARN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.70%.
- The earnings per share for EARN have been decreasing by -31.03% on average. This is quite bad
- EARN shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.56%.
- The Revenue has been growing slightly by 2.60% on average over the past years.
EPS 1Y (TTM)-67.7%
EPS 3YN/A
EPS 5Y-31.03%
EPS Q2Q%83.62%
Revenue 1Y (TTM)34.56%
Revenue growth 3Y20.7%
Revenue growth 5Y2.6%
Sales Q2Q%161.58%
3.2 Future
- EARN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.57% yearly.
- Based on estimates for the next years, EARN will show a quite strong growth in Revenue. The Revenue will grow by 14.40% on average per year.
EPS Next Y0%
EPS Next 2Y8.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year19.57%
Revenue Next 2Y14.4%
Revenue Next 3YN/A
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 accelerating: in the next years the growth will be better than in the last years.
4. EARN Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.00, which indicates a correct valuation of EARN.
- EARN's Price/Earnings ratio is in line with the industry average.
- EARN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.54.
- Based on the Price/Forward Earnings ratio of 4.35, the valuation of EARN can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EARN indicates a rather cheap valuation: EARN is cheaper than 95.40% of the companies listed in the same industry.
- EARN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 4.35 |
4.2 Price Multiples
- EARN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EARN is cheaper than 98.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.48 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.57%
EPS Next 3YN/A
5. EARN Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 17.91%, EARN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.53, EARN pays a better dividend. On top of this EARN pays more dividend than 91.21% of the companies listed in the same industry.
- EARN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.91% |
5.2 History
- The dividend of EARN decreases each year by -5.74%.
- EARN has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of EARN decreased in the last 3 years.
Dividend Growth(5Y)-5.74%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- EARN pays out 74.71% of its income as dividend. This is not a sustainable payout ratio.
DP74.71%
EPS Next 2Y8.57%
EPS Next 3YN/A
EARN Fundamentals: All Metrics, Ratios and Statistics
4.68
-0.08 (-1.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Industry Strength29.19
Industry Growth54.66
Earnings (Last)03-10 2026-03-10/amc
Earnings (Next)05-18 2026-05-18/amc
Inst Owners10.28%
Inst Owner Change0.06%
Ins Owners0.95%
Ins Owner Change-1.97%
Market Cap175.83M
Revenue(TTM)65.80M
Net Income(TTM)14.81M
Analysts76
Price Target5.61 (19.87%)
Short Float %2.5%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.91% |
Yearly Dividend0.92
Dividend Growth(5Y)-5.74%
DP74.71%
Div Incr Years0
Div Non Decr Years2
Ex-Date04-30 2026-04-30 (0.08)
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)43.96%
Min Revenue beat(2)-8.61%
Max Revenue beat(2)96.54%
Revenue beat(4)3
Avg Revenue beat(4)29.15%
Min Revenue beat(4)-8.61%
Max Revenue beat(4)96.54%
Revenue beat(8)3
Avg Revenue beat(8)9.79%
Revenue beat(12)3
Avg Revenue beat(12)-31.25%
Revenue beat(16)5
Avg Revenue beat(16)-34.74%
PT rev (1m)-4.35%
PT rev (3m)-4.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)-14.35%
EPS NY rev (3m)-10.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 4.35 | ||
| P/S | 2.67 | ||
| P/FCF | 0.48 | ||
| P/OCF | 0.48 | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.36
EY7.69%
EPS(NY)1.08
Fwd EY22.99%
FCF(TTM)9.81
FCFY209.64%
OCF(TTM)9.81
OCFY209.64%
SpS1.75
BVpS5.99
TBVpS5.99
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.96622 (48.85%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 6.58% | ||
| ROCE | 13.96% | ||
| ROIC | 7.19% | ||
| ROICexc | 7.19% | ||
| ROICexgc | 7.22% | ||
| OM | 48.72% | ||
| PM (TTM) | 22.51% | ||
| GM | 57.37% | ||
| FCFM | 560.17% |
ROA(3y)-0.53%
ROA(5y)-0.06%
ROE(3y)-6.71%
ROE(5y)-2.43%
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 3Y-20.19%
ROICexgc growth 5Y30.77%
ROICexc growth 3Y-18.96%
ROICexc growth 5Y29.4%
OM growth 3Y-43.57%
OM growth 5Y11%
PM growth 3YN/A
PM growth 5Y-23.61%
GM growth 3Y-38.4%
GM growth 5Y9.83%
F-Score8
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 0.48 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | -1.58 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 2488.89% | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | -0.05 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-67.7%
EPS 3YN/A
EPS 5Y-31.03%
EPS Q2Q%83.62%
EPS Next Y0%
EPS Next 2Y8.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)34.56%
Revenue growth 3Y20.7%
Revenue growth 5Y2.6%
Sales Q2Q%161.58%
Revenue Next Year19.57%
Revenue Next 2Y14.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2161.07%
EBIT growth 3Y-31.89%
EBIT growth 5Y13.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1400.65%
FCF growth 3Y-31.12%
FCF growth 5Y-12.27%
OCF growth 1Y1400.65%
OCF growth 3Y-31.12%
OCF growth 5Y-12.27%
ELLINGTON CREDIT CO / EARN Fundamental Analysis FAQ
What is the ChartMill fundamental rating of ELLINGTON CREDIT CO (EARN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to EARN.
What is the valuation status of ELLINGTON CREDIT CO (EARN) stock?
ChartMill assigns a valuation rating of 5 / 10 to ELLINGTON CREDIT CO (EARN). This can be considered as Fairly Valued.
How profitable is ELLINGTON CREDIT CO (EARN) stock?
ELLINGTON CREDIT CO (EARN) has a profitability rating of 5 / 10.
What is the financial health of ELLINGTON CREDIT CO (EARN) stock?
The financial health rating of ELLINGTON CREDIT CO (EARN) is 3 / 10.
What is the expected EPS growth for ELLINGTON CREDIT CO (EARN) stock?
The Earnings per Share (EPS) of ELLINGTON CREDIT CO (EARN) is expected to decline by 0% in the next year.