ELLINGTON CREDIT CO (EARN) Stock Fundamental Analysis

NYSE:EARN • US2885781078

5.07 USD
+0.05 (+1%)
At close: Feb 23, 2026
5.07 USD
0 (0%)
After Hours: 2/23/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis News
Fundamental Rating

5

Overall EARN gets a fundamental rating of 5 out of 10. We evaluated EARN against 238 industry peers in the Capital Markets industry. There are concerns on the financial health of EARN while its profitability can be described as average. EARN has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

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.
  • Of the past 5 years EARN 4 years had a positive operating cash flow.
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 3.39% is in line compared to the rest of the industry. EARN outperforms 55.46% of its industry peers.
  • EARN has a Return On Equity (6.28%) which is in line with its industry peers.
  • EARN's Return On Invested Capital of 7.18% is fine compared to the rest of the industry. EARN outperforms 79.41% of its industry peers.
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 has a Profit Margin (21.40%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of EARN has declined.
  • Looking at the Operating Margin, with a value of 48.59%, EARN belongs to the top of the industry, outperforming 86.13% of the companies in the same industry.
  • EARN's Operating Margin has improved in the last couple of years.
  • EARN has a better Gross Margin (57.52%) than 65.13% of its industry peers.
  • EARN's Gross Margin has improved in the last couple of years.
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. Health

2.1 Basic Checks

  • The number of shares outstanding for EARN has been increased compared to 1 year ago.
  • EARN has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for EARN has been reduced compared to a year ago.
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 -0.02. This is a bad value and indicates that EARN is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of -0.02, EARN is doing worse than 73.95% of the companies in the same industry.
  • EARN has a debt to FCF ratio of 0.47. This is a very positive value and a sign of high solvency as it would only need 0.47 years to pay back of all of its debts.
  • EARN has a Debt to FCF ratio of 0.47. This is amongst the best in the industry. EARN outperforms 91.60% 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.
  • With a Debt to Equity ratio value of 0.78, EARN perfoms like the industry average, outperforming 56.72% of the companies in the same industry.
  • Even though the debt/equity ratio score it not favorable for EARN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF 0.47
Altman-Z -0.02
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's Current ratio of 0.18 is on the low side compared to the rest of the industry. EARN is outperformed by 86.97% of its industry peers.
  • 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 86.97% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

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%.
  • Measured over the past years, EARN shows a small growth in Revenue. The Revenue has been growing by 2.60% on average per year.
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

  • Based on estimates for the next years, EARN will show a small growth in Earnings Per Share. The EPS will grow by 6.49% on average per year.
  • The Revenue is expected to grow by 13.03% on average over the next years. This is quite good.
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

  • 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.
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. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 15.36, the valuation of EARN can be described as correct.
  • The rest of the industry has a similar Price/Earnings ratio as EARN.
  • EARN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.64.
  • EARN is valuated cheaply with a Price/Forward Earnings ratio of 4.90.
  • Based on the Price/Forward Earnings ratio, EARN is valued cheaper than 94.54% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.75, EARN is valued rather cheaply.
Industry RankSector Rank
PE 15.36
Fwd PE 4.9
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

  • 98.74% of the companies in the same industry are more expensive than EARN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 0.52
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)1.35
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. Dividend

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 6.17. EARN pays more dividend than 93.28% of the companies in the same industry.
  • EARN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
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.
  • EARN has decreased its dividend 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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ELLINGTON CREDIT CO

NYSE:EARN (2/23/2026, 8:04:00 PM)

After market: 5.07 0 (0%)

5.07

+0.05 (+1%)

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-9.41%
Ins Owners0.97%
Ins Owner Change-0.18%
Market Cap190.48M
Revenue(TTM)65.98M
Net Income(TTM)14.12M
Analysts76
Price Target5.87 (15.78%)
Short Float %0.98%
Short Ratio0.97
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 15.36
Fwd PE 4.9
P/S 2.89
P/FCF 0.52
P/OCF 0.52
P/B 0.85
P/tB 0.85
EV/EBITDA N/A
EPS(TTM)0.33
EY6.51%
EPS(NY)1.04
Fwd EY20.42%
FCF(TTM)9.81
FCFY193.46%
OCF(TTM)9.81
OCFY193.46%
SpS1.76
BVpS5.99
TBVpS5.99
PEG (NY)1.35
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 -0.02
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 15.36 and the Price/Book (PB) ratio is 0.85.


How financially healthy is ELLINGTON CREDIT CO?

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