ELLINGTON CREDIT CO (EARN) Fundamental Analysis & Valuation

NYSE:EARN • US2885781078

Current stock price

4.58 USD
+0.02 (+0.44%)
At close:
4.56 USD
-0.02 (-0.44%)
After Hours:

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

5

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.
  • 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

  • EARN's Return On Assets of 3.56% is in line compared to the rest of the industry. EARN outperforms 60.00% of its industry peers.
  • EARN has a Return On Equity of 6.58%. This is comparable to the rest of the industry: EARN outperforms 46.25% of its industry peers.
  • The Return On Invested Capital of EARN (7.19%) is better than 77.92% of its industry peers.
Industry RankSector 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
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 22.51% is in line compared to the rest of the industry. EARN outperforms 60.00% of its industry peers.
  • In the last couple of years the Profit Margin of EARN has declined.
  • The Operating Margin of EARN (48.72%) is better than 86.25% of its industry peers.
  • In the last couple of years the Operating Margin of EARN has grown nicely.
  • Looking at the Gross Margin, with a value of 57.37%, EARN is in the better half of the industry, outperforming 65.42% of the companies in the same industry.
  • In the last couple of years the Gross Margin of EARN has grown nicely.
Industry RankSector 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%
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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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 -0.08. This is a bad value and indicates that EARN is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of EARN (-0.08) is worse than 75.42% 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.
  • The Debt to FCF ratio of EARN (0.48) is better than 91.67% of its industry peers.
  • 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 60.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF 0.48
Altman-Z -0.08
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

  • EARN has a Current 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 Current ratio value of 0.18, EARN is not doing good in the industry: 89.58% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.18 indicates that EARN may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.18, EARN is doing worse than 89.58% of the companies in the same industry.
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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5

3. EARN Growth Analysis

3.1 Past

  • The earnings per share for EARN have decreased strongly by -67.70% in the last year.
  • Measured over the past years, EARN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -31.03% on average per year.
  • Looking at the last year, EARN shows a very strong growth in Revenue. 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

  • Based on estimates for the next years, EARN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.31% on average per year.
  • EARN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.40% yearly.
EPS Next Y16.76%
EPS Next 2Y8.31%
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

  • 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 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

  • A Price/Earnings ratio of 12.72 indicates a correct valuation of EARN.
  • EARN's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.17. EARN is valued rather cheaply when compared to this.
  • EARN is valuated cheaply with a Price/Forward Earnings ratio of 4.28.
  • Based on the Price/Forward Earnings ratio, EARN is valued cheaply inside the industry as 92.92% of the companies are valued more expensively.
  • EARN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.05.
Industry RankSector Rank
PE 12.72
Fwd PE 4.28
EARN Price Earnings VS Forward Price EarningsEARN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 0.47
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

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y8.31%
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.
  • EARN's Dividend Yield is rather good when compared to the industry average which is at 6.90. EARN pays more dividend than 89.58% of the companies in the same industry.
  • EARN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector 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
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

  • 74.71% of the earnings are spent on dividend by EARN. This is not a sustainable payout ratio.
DP74.71%
EPS Next 2Y8.31%
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 (4/2/2026, 8:20:29 PM)

After market: 4.56 -0.02 (-0.44%)

4.58

+0.02 (+0.44%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)03-10
Earnings (Next)05-18
Inst Owners10.34%
Inst Owner Change0%
Ins Owners0.95%
Ins Owner Change-1.97%
Market Cap172.07M
Revenue(TTM)65.80M
Net Income(TTM)14.81M
Analysts76
Price Target5.61 (22.49%)
Short Float %3.37%
Short Ratio2.33
Dividend
Industry RankSector Rank
Dividend Yield 17.91%
Yearly Dividend0.92
Dividend Growth(5Y)-5.74%
DP74.71%
Div Incr Years0
Div Non Decr Years2
Ex-Date03-31
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)-6.38%
EPS NQ rev (1m)-14.29%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)0%
EPS NY rev (3m)3.81%
Revenue NQ rev (1m)-1.97%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-4.6%
Revenue NY rev (3m)1.26%
Valuation
Industry RankSector Rank
PE 12.72
Fwd PE 4.28
P/S 2.61
P/FCF 0.47
P/OCF 0.47
P/B 0.76
P/tB 0.76
EV/EBITDA N/A
EPS(TTM)0.36
EY7.86%
EPS(NY)1.07
Fwd EY23.38%
FCF(TTM)9.81
FCFY214.22%
OCF(TTM)9.81
OCFY214.22%
SpS1.75
BVpS5.99
TBVpS5.99
PEG (NY)0.76
PEG (5Y)N/A
Graham Number6.97
Profitability
Industry RankSector 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 RankSector 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 -0.08
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 Y16.76%
EPS Next 2Y8.31%
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 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.


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 grow by 16.76% in the next year.