ELLINGTON CREDIT CO (EARN) Fundamental Analysis & Valuation

NYSE:EARN • US2885781078

4.97 USD
+0.02 (+0.4%)
Last: Mar 3, 2026, 08:06 PM
Overview Stock Chart Technical Analysis News

This EARN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Taking everything into account, EARN scores 5 out of 10 in our fundamental rating. EARN was compared to 238 industry peers in the Capital Markets industry. While EARN is still in line with the averages on profitability rating, there are concerns on its financial health. EARN has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

5

1. EARN Profitability Analysis

1.1 Basic Checks

  • In the past year EARN was profitable.
  • EARN had a positive operating cash flow in the past year.
  • In multiple years EARN reported negative net income over the last 5 years.
  • EARN had a positive operating cash flow in 4 of the past 5 years.
EARN Yearly Net Income VS EBIT VS OCF VS FCFEARN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M -20M

1.2 Ratios

  • The Return On Assets of EARN (3.39%) is comparable to the rest of the industry.
  • EARN has a Return On Equity of 6.28%. This is comparable to the rest of the industry: EARN outperforms 44.54% of its industry peers.
  • With a decent Return On Invested Capital value of 7.18%, EARN is doing good in the industry, outperforming 78.99% of the companies in the same industry.
Industry RankSector Rank
ROA 3.39%
ROE 6.28%
ROIC 7.18%
ROA(3y)-0.53%
ROA(5y)-0.06%
ROE(3y)-6.71%
ROE(5y)-2.43%
ROIC(3y)N/A
ROIC(5y)N/A
EARN Yearly ROA, ROE, ROICEARN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20

1.3 Margins

  • EARN's Profit Margin of 21.40% is in line compared to the rest of the industry. EARN outperforms 56.72% of its industry peers.
  • EARN's Profit Margin has declined in the last couple of years.
  • EARN has a better Operating Margin (48.59%) than 85.71% of its industry peers.
  • EARN's Operating Margin has improved in the last couple of years.
  • EARN's Gross Margin of 57.52% is fine compared to the rest of the industry. EARN outperforms 64.71% of its industry peers.
  • In the last couple of years the Gross Margin of EARN has grown nicely.
Industry RankSector Rank
OM 48.59%
PM (TTM) 21.4%
GM 57.52%
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%
EARN Yearly Profit, Operating, Gross MarginsEARN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. EARN Health Analysis

2.1 Basic Checks

  • EARN has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, EARN has more shares outstanding
  • EARN has a better debt/assets ratio than last year.
EARN Yearly Shares OutstandingEARN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
EARN Yearly Total Debt VS Total AssetsEARN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • EARN has an Altman-Z score of -0.03. This is a bad value and indicates that EARN is not financially healthy and even has some risk of bankruptcy.
  • EARN has a Altman-Z score of -0.03. This is in the lower half of the industry: EARN underperforms 74.37% of its industry peers.
  • The Debt to FCF ratio of EARN is 0.47, which is an excellent value as it means it would take EARN, only 0.47 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 0.47, EARN belongs to the best of the industry, outperforming 92.02% of the companies in the same industry.
  • A Debt/Equity ratio of 0.78 indicates that EARN is somewhat dependend on debt financing.
  • EARN has a Debt to Equity ratio of 0.78. This is comparable to the rest of the industry: EARN outperforms 57.98% of its industry peers.
  • Although EARN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF 0.47
Altman-Z -0.03
ROIC/WACCN/A
WACCN/A
EARN Yearly LT Debt VS Equity VS FCFEARN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M 100M 150M

2.3 Liquidity

  • A Current Ratio of 0.18 indicates that EARN may have some problems paying its short term obligations.
  • EARN has a worse Current ratio (0.18) than 87.39% of its industry peers.
  • EARN has a Quick Ratio of 0.18. This is a bad value and indicates that EARN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.18, EARN is not doing good in the industry: 87.39% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.18
Quick Ratio 0.18
EARN Yearly Current Assets VS Current LiabilitesEARN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. EARN Growth Analysis

3.1 Past

  • The earnings per share for EARN have decreased strongly by -70.49% in the last year.
  • EARN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.03% yearly.
  • EARN shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.92%.
  • EARN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.60% yearly.
EPS 1Y (TTM)-70.49%
EPS 3YN/A
EPS 5Y-31.03%
EPS Q2Q%71.43%
Revenue 1Y (TTM)34.92%
Revenue growth 3Y20.7%
Revenue growth 5Y2.6%
Sales Q2Q%163.4%

3.2 Future

  • The Earnings Per Share is expected to grow by 6.49% on average over the next years.
  • EARN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.03% yearly.
EPS Next Y11.36%
EPS Next 2Y6.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.28%
Revenue Next 2Y13.03%
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.
EARN Yearly Revenue VS EstimatesEARN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 10M 20M 30M 40M 50M
EARN Yearly EPS VS EstimatesEARN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2

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6

4. EARN Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 15.06, EARN is valued correctly.
  • The rest of the industry has a similar Price/Earnings ratio as EARN.
  • The average S&P500 Price/Earnings ratio is at 26.83. EARN is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 4.80 indicates a rather cheap valuation of EARN.
  • Based on the Price/Forward Earnings ratio, EARN is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 24.95. EARN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 15.06
Fwd PE 4.8
EARN Price Earnings VS Forward Price EarningsEARN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, EARN is valued cheaper than 98.32% of the companies in the same industry.
Industry RankSector Rank
P/FCF 0.51
EV/EBITDA N/A
EARN Per share dataEARN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • EARN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.33
PEG (5Y)N/A
EPS Next 2Y6.49%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. EARN Dividend Analysis

5.1 Amount

  • EARN has a Yearly Dividend Yield of 17.91%, which is a nice return.
  • Compared to an average industry Dividend Yield of 6.44, EARN pays a better dividend. On top of this EARN pays more dividend than 92.44% 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 RankSector Rank
Dividend Yield 17.91%

5.2 History

  • The dividend of EARN decreases each year by -5.74%.
  • EARN has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of EARN decreased recently.
Dividend Growth(5Y)-5.74%
Div Incr Years0
Div Non Decr Years1
EARN Yearly Dividends per shareEARN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • EARN pays out 78.47% of its income as dividend. This is not a sustainable payout ratio.
DP78.47%
EPS Next 2Y6.49%
EPS Next 3YN/A
EARN Yearly Income VS Free CF VS DividendEARN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M -20M
EARN Dividend Payout.EARN Dividend Payout, showing the Payout Ratio.EARN Dividend Payout.PayoutRetained Earnings

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EARN Fundamentals: All Metrics, Ratios and Statistics

ELLINGTON CREDIT CO

NYSE:EARN (3/3/2026, 8:06:44 PM)

4.97

+0.02 (+0.4%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)N/A
Earnings (Next)03-10
Inst Owners11.15%
Inst Owner Change-9.15%
Ins Owners0.97%
Ins Owner Change-0.18%
Market Cap186.72M
Revenue(TTM)65.98M
Net Income(TTM)14.12M
Analysts76
Price Target5.87 (18.11%)
Short Float %1.47%
Short Ratio1.21
Dividend
Industry RankSector Rank
Dividend Yield 17.91%
Yearly Dividend0.92
Dividend Growth(5Y)-5.74%
DP78.47%
Div Incr Years0
Div Non Decr Years1
Ex-Date02-27
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)48.89%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)98.67%
Revenue beat(4)3
Avg Revenue beat(4)30.91%
Min Revenue beat(4)-0.9%
Max Revenue beat(4)98.67%
Revenue beat(8)3
Avg Revenue beat(8)10.67%
Revenue beat(12)3
Avg Revenue beat(12)-30.66%
Revenue beat(16)5
Avg Revenue beat(16)-34.3%
PT rev (1m)0%
PT rev (3m)-2.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.51%
EPS NY rev (1m)0%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)11.99%
Valuation
Industry RankSector Rank
PE 15.06
Fwd PE 4.8
P/S 2.83
P/FCF 0.51
P/OCF 0.51
P/B 0.83
P/tB 0.83
EV/EBITDA N/A
EPS(TTM)0.33
EY6.64%
EPS(NY)1.04
Fwd EY20.83%
FCF(TTM)9.81
FCFY197.35%
OCF(TTM)9.81
OCFY197.35%
SpS1.76
BVpS5.99
TBVpS5.99
PEG (NY)1.33
PEG (5Y)N/A
Graham Number6.67
Profitability
Industry RankSector Rank
ROA 3.39%
ROE 6.28%
ROCE 13.92%
ROIC 7.18%
ROICexc 7.18%
ROICexgc 7.18%
OM 48.59%
PM (TTM) 21.4%
GM 57.52%
FCFM 558.49%
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 RankSector Rank
Debt/Equity 0.78
Debt/FCF 0.47
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage -1.58
Cash Conversion N/A
Profit Quality 2609.77%
Current Ratio 0.18
Quick Ratio 0.18
Altman-Z -0.03
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)-70.49%
EPS 3YN/A
EPS 5Y-31.03%
EPS Q2Q%71.43%
EPS Next Y11.36%
EPS Next 2Y6.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)34.92%
Revenue growth 3Y20.7%
Revenue growth 5Y2.6%
Sales Q2Q%163.4%
Revenue Next Year17.28%
Revenue Next 2Y13.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2160.93%
EBIT growth 3Y-31.89%
EBIT growth 5Y13.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1400.28%
FCF growth 3Y-31.12%
FCF growth 5Y-12.27%
OCF growth 1Y1400.28%
OCF growth 3Y-31.12%
OCF growth 5Y-12.27%

ELLINGTON CREDIT CO / EARN FAQ

What is the ChartMill fundamental rating of ELLINGTON CREDIT CO (EARN) stock?

ChartMill assigns a fundamental rating of 5 / 10 to EARN.


What is the valuation status of ELLINGTON CREDIT CO (EARN) stock?

ChartMill assigns a valuation rating of 6 / 10 to ELLINGTON CREDIT CO (EARN). This can be considered as Fairly Valued.


What is the profitability of EARN stock?

ELLINGTON CREDIT CO (EARN) has a profitability rating of 5 / 10.


Can you provide the PE and PB ratios for EARN stock?

The Price/Earnings (PE) ratio for ELLINGTON CREDIT CO (EARN) is 15.06 and the Price/Book (PB) ratio is 0.83.


How financially healthy is ELLINGTON CREDIT CO?

The financial health rating of ELLINGTON CREDIT CO (EARN) is 3 / 10.