ELLINGTON CREDIT CO (EARN) Stock Price, Forecast & Analysis
USA - New York Stock Exchange - NYSE:EARN - US2885781078
5.28 USD
+0.04 (+0.76%)
5.31 USD
+0.03 (+0.57%)
Overall EARN gets a fundamental rating of 5 out of 10. We evaluated EARN against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
EARN had positive earnings in the past year.
EARN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: EARN reported negative net income in multiple years.
Of the past 5 years EARN 4 years had a positive operating cash flow.
1.2 Ratios
EARN's Return On Assets of 3.39% is in line compared to the rest of the industry. EARN outperforms 58.40% of its industry peers.
EARN's Return On Equity of 6.28% is in line compared to the rest of the industry. EARN outperforms 44.12% of its industry peers.
The Return On Invested Capital of EARN (7.18%) is better than 79.41% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
EARN's Profit Margin of 21.40% is fine compared to the rest of the industry. EARN outperforms 60.08% of its industry peers.
EARN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 48.59%, EARN belongs to the best of the industry, outperforming 86.55% of the companies in the same industry.
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 68.07% of its industry peers.
EARN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
Compared to 1 year ago, EARN has more shares outstanding
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.
2.2 Solvency
Based on the Altman-Z score of 0.01, 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 0.01, EARN is doing worse than 75.63% 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.
Looking at the Debt to FCF ratio, with a value of 0.47, EARN belongs to the top 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 55.88% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 0.01 |
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.
EARN has a Current ratio of 0.18. This is amonst the worse of the industry: EARN underperforms 89.92% 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.
EARN has a Quick ratio of 0.18. This is amonst the worse of the industry: EARN underperforms 89.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
EARN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.49%.
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
EARN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.04% yearly.
The Revenue is expected to grow by 13.76% on average over the next years. This is quite good.
EPS Next Y12.59%
EPS Next 2Y9.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.28%
Revenue Next 2Y13.76%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.00, EARN is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as EARN.
EARN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.84, the valuation of EARN can be described as very cheap.
Based on the Price/Forward Earnings ratio, EARN is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
EARN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 4.84 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.54 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.27
PEG (5Y)N/A
EPS Next 2Y9.04%
EPS Next 3YN/A
5. Dividend
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 6.43, EARN pays a better dividend. On top of this EARN pays more dividend than 92.02% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, EARN pays a better dividend.
| 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 recently.
Dividend Growth(5Y)-5.74%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
EARN pays out 78.47% of its income as dividend. This is not a sustainable payout ratio.
DP78.47%
EPS Next 2Y9.04%
EPS Next 3YN/A
5.28
+0.04 (+0.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners11.27%
Inst Owner Change-16.64%
Ins Owners0.97%
Ins Owner Change1.75%
Market Cap198.37M
Revenue(TTM)65.98M
Net Income(TTM)14.12M
Analysts76
Price Target5.99 (13.45%)
Short Float %0.97%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.91% |
Yearly Dividend0.92
Dividend Growth(5Y)-5.74%
DP78.47%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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)-4.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)2.36%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)11.99%
Revenue NY rev (3m)11.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 4.84 | ||
| P/S | 3.01 | ||
| P/FCF | 0.54 | ||
| P/OCF | 0.54 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY6.25%
EPS(NY)1.09
Fwd EY20.67%
FCF(TTM)9.81
FCFY185.76%
OCF(TTM)9.81
OCFY185.76%
SpS1.76
BVpS5.99
TBVpS5.99
PEG (NY)1.27
PEG (5Y)N/A
Graham Number6.67
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.01 |
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 Y12.59%
EPS Next 2Y9.04%
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 2Y13.76%
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 does ELLINGTON CREDIT CO do?
Ellington Credit Co. is a real estate investment trust, which engages in the acquisition, investment, and management of residential mortgage and real estate-related assets. The company is headquartered in Old Greenwich, Connecticut and currently employs 160 full-time employees. The company went IPO on 2013-01-05. The firm is focused on acquiring, investing in, and managing secondary collateralized loan obligations (CLO) mezzanine debt and equity tranches. The company specializes in acquiring, investing in, and managing residential mortgage- and real estate-related assets. The firm's primary objective is to generate attractive risk-adjusted total returns for its shareholders by making investments in multiple parts of the CLO capital structure, including mezzanine debt and equity tranches. Additionally, it may also invest in CLO loan accumulation facilities, which are entities that acquire corporate loans and other similar corporate credit-related assets in anticipation of ultimately collateralizing a CLO transaction, as well as other related assets. The company is externally managed and advised by Ellington Credit Company Management LLC.
Can you provide the latest stock price for ELLINGTON CREDIT CO?
The current stock price of EARN is 5.28 USD. The price increased by 0.76% in the last trading session.
What is the ChartMill technical and fundamental rating of EARN stock?
EARN has a ChartMill Technical rating of 2 out of 10 and a ChartMill Fundamental rating of 5 out of 10.