ELLINGTON CREDIT CO (EARN) Stock Price, Forecast & Analysis
USA - New York Stock Exchange - NYSE:EARN - US2885781078
5.64 USD
+0.19 (+3.49%)
5.65 USD
+0.01 (+0.18%)
Taking everything into account, EARN scores 4 out of 10 in our fundamental rating. EARN was compared to 235 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 correct valuation and a medium growth rate.
1. Profitability
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.
1.2 Ratios
- EARN has a Return On Assets (3.39%) which is comparable to the rest of the industry.
- EARN has a Return On Equity (6.28%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 7.18%, EARN is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
| 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 has a Profit Margin of 21.40%. This is in the better half of the industry: EARN outperforms 62.13% of its industry peers.
- In the last couple of years the Profit Margin of EARN has declined.
- EARN has a Operating Margin of 48.59%. This is amongst the best in the industry. EARN outperforms 86.38% of its industry peers.
- EARN's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 57.52%, EARN is in the better half of the industry, outperforming 68.94% of the companies in the same industry.
- In the last couple of years the Gross Margin of EARN has grown nicely.
| 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
- 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.
- Compared to 1 year ago, EARN has an improved debt to assets ratio.
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's Altman-Z score of 0.03 is on the low side compared to the rest of the industry. EARN is outperformed by 72.34% 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.
- Looking at the Debt to FCF ratio, with a value of 0.47, EARN belongs to the top of the industry, outperforming 91.91% 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.
- EARN has a Debt to Equity ratio of 0.78. This is comparable to the rest of the industry: EARN outperforms 57.45% 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 | 0.03 |
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.
- With a Current ratio value of 0.18, EARN is not doing good in the industry: 88.51% 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.
- EARN has a Quick ratio of 0.18. This is amonst the worse of the industry: EARN underperforms 88.51% 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%.
- 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.
- The Revenue has grown by 34.92% in the past year. This is a very strong growth!
- 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
- Based on estimates for the next years, EARN will show a small growth in Earnings Per Share. The EPS will grow by 7.24% on average per year.
- Based on estimates for the next years, EARN will show a quite strong growth in Revenue. The Revenue will grow by 12.98% on average per year.
EPS Next Y11.85%
EPS Next 2Y7.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.27%
Revenue Next 2Y12.98%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.09, which indicates a rather expensive current valuation of EARN.
- EARN's Price/Earnings ratio is in line with the industry average.
- EARN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 5.34, the valuation of EARN can be described as very cheap.
- Based on the Price/Forward Earnings ratio, EARN is valued cheaper than 95.32% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. EARN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 5.34 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, EARN is valued cheaply inside the industry as 98.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.58 | ||
| 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)1.44
PEG (5Y)N/A
EPS Next 2Y7.24%
EPS Next 3YN/A
5. Dividend
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 6.15, EARN pays a better dividend. On top of this EARN pays more dividend than 93.62% 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 1.89.
| Industry Rank | Sector 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
5.3 Sustainability
- 78.47% of the earnings are spent on dividend by EARN. This is not a sustainable payout ratio.
DP78.47%
EPS Next 2Y7.24%
EPS Next 3YN/A
5.64
+0.19 (+3.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)08-19 2025-08-19/amc
Earnings (Next)03-10 2026-03-10/amc
Inst Owners11.15%
Inst Owner Change0.02%
Ins Owners0.97%
Ins Owner Change-0.18%
Market Cap211.89M
Revenue(TTM)65.98M
Net Income(TTM)14.12M
Analysts76
Price Target5.99 (6.21%)
Short Float %1.34%
Short Ratio1.53
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-DateN/A
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)-7.51%
EPS NQ rev (3m)-7.51%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)3.51%
Revenue NQ rev (3m)3.51%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)11.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 5.34 | ||
| P/S | 3.21 | ||
| P/FCF | 0.58 | ||
| P/OCF | 0.58 | ||
| P/B | 0.94 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY5.85%
EPS(NY)1.06
Fwd EY18.72%
FCF(TTM)9.81
FCFY173.91%
OCF(TTM)9.81
OCFY173.91%
SpS1.76
BVpS5.99
TBVpS5.99
PEG (NY)1.44
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 | 0.03 |
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 Y11.85%
EPS Next 2Y7.24%
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 Year17.27%
Revenue Next 2Y12.98%
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.
What is the stock price of ELLINGTON CREDIT CO today?
The current stock price of EARN is 5.64 USD. The price increased by 3.49% in the last trading session.
What is the ChartMill technical and fundamental rating of EARN stock?
EARN has a ChartMill Technical rating of 5 out of 10 and a ChartMill Fundamental rating of 4 out of 10.