ELLINGTON CREDIT CO (EARN) Fundamental Analysis & Valuation

NYSE:EARN • US2885781078

Current stock price

4.34 USD
-0.09 (-2.03%)
At close:
4.35 USD
+0.01 (+0.23%)
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

  • EARN had positive earnings in the past year.
  • 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

  • The Return On Assets of EARN (3.56%) is comparable to the rest of the industry.
  • EARN's Return On Equity of 6.58% is in line compared to the rest of the industry. EARN outperforms 44.21% of its industry peers.
  • With a decent Return On Invested Capital value of 7.19%, EARN is doing good in the industry, outperforming 78.51% of the companies in the same industry.
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

  • With a Profit Margin value of 22.51%, EARN perfoms like the industry average, outperforming 57.85% of the companies in the same industry.
  • In the last couple of years the Profit Margin of EARN has declined.
  • The Operating Margin of EARN (48.72%) is better than 86.36% of its industry peers.
  • In the last couple of years the Operating Margin of EARN has grown nicely.
  • The Gross Margin of EARN (57.37%) is better than 65.70% of its industry peers.
  • 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
  • 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

  • Based on the Altman-Z score of -0.09, we must say that EARN is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of -0.09, EARN is doing worse than 76.86% of the companies in the same industry.
  • The Debt to FCF ratio of EARN is 0.48, which is an excellent value as it means it would take EARN, only 0.48 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 0.48, EARN belongs to the best of the industry, outperforming 91.74% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.78, EARN is in line with its industry, outperforming 59.50% 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 0.48
Altman-Z -0.09
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.
  • The Current ratio of EARN (0.18) is worse than 87.60% of its industry peers.
  • A Quick Ratio of 0.18 indicates that EARN may have some problems paying its short term obligations.
  • EARN has a worse Quick ratio (0.18) than 87.60% of its industry peers.
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 -67.70% 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.
  • Looking at the last year, EARN shows a very strong growth in Revenue. The Revenue has grown by 34.56%.
  • EARN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.60% yearly.
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 12.06 indicates a correct valuation of EARN.
  • Compared to the rest of the industry, the Price/Earnings ratio of EARN is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 25.23. EARN is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 4.05, 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 94.21% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.28. EARN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.06
Fwd PE 4.05
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 cheaply inside the industry as 99.17% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 0.44
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)0.72
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.
  • Compared to an average industry Dividend Yield of 6.94, EARN pays a better dividend. On top of this EARN pays more dividend than 90.50% 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 1.91.
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

  • 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 (3/20/2026, 7:00:00 PM)

After market: 4.35 +0.01 (+0.23%)

4.34

-0.09 (-2.03%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)03-10
Earnings (Next)05-18
Inst Owners10.34%
Inst Owner Change-9.15%
Ins Owners0.95%
Ins Owner Change-1.2%
Market Cap163.05M
Revenue(TTM)65.80M
Net Income(TTM)14.81M
Analysts76
Price Target5.87 (35.25%)
Short Float %3.44%
Short Ratio2.51
Dividend
Industry RankSector Rank
Dividend Yield 17.91%
Yearly Dividend0.92
Dividend Growth(5Y)-5.74%
DP74.71%
Div Incr Years0
Div Non Decr Years1
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)48.2%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)97.3%
Revenue beat(4)3
Avg Revenue beat(4)30.57%
Min Revenue beat(4)-0.9%
Max Revenue beat(4)97.3%
Revenue beat(8)3
Avg Revenue beat(8)10.5%
Revenue beat(12)3
Avg Revenue beat(12)-30.78%
Revenue beat(16)5
Avg Revenue beat(16)-34.38%
PT rev (1m)0%
PT rev (3m)-2.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.51%
EPS NY rev (1m)4.85%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.51%
Revenue NY rev (1m)6.14%
Revenue NY rev (3m)6.14%
Valuation
Industry RankSector Rank
PE 12.06
Fwd PE 4.05
P/S 2.48
P/FCF 0.44
P/OCF 0.44
P/B 0.72
P/tB 0.72
EV/EBITDA N/A
EPS(TTM)0.36
EY8.29%
EPS(NY)1.07
Fwd EY24.68%
FCF(TTM)9.81
FCFY226.06%
OCF(TTM)9.81
OCFY226.06%
SpS1.75
BVpS5.99
TBVpS5.99
PEG (NY)0.72
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 -0.09
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.


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 12.06 and the Price/Book (PB) ratio is 0.72.


How financially healthy is ELLINGTON CREDIT CO?

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