ELLINGTON CREDIT CO (EARN) Fundamental Analysis & Valuation
NYSE:EARN • US2885781078
Current stock price
4.61 USD
+0.03 (+0.66%)
Last:
This EARN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- The reported net income has been mixed in the past 5 years: EARN reported negative net income in multiple years.
- EARN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.56%, EARN is in the better half of the industry, outperforming 60.25% of the companies in the same industry.
- EARN has a Return On Equity (6.58%) which is in line with its industry peers.
- With a decent Return On Invested Capital value of 7.19%, EARN is doing good in the industry, outperforming 77.82% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
- The Profit Margin of EARN (22.51%) is better than 60.25% of its industry peers.
- In the last couple of years the Profit Margin of EARN has declined.
- EARN's Operating Margin of 48.72% is amongst the best of the industry. EARN outperforms 86.19% 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 57.37%, EARN is in the better half of the industry, outperforming 65.69% of the companies in the same industry.
- EARN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. EARN Health Analysis
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.
- Compared to 1 year ago, EARN has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -0.08, we must say that EARN is in the distress zone and has some risk of bankruptcy.
- EARN has a Altman-Z score of -0.08. This is in the lower half of the industry: EARN underperforms 75.73% 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.
- EARN has a better Debt to FCF ratio (0.48) than 91.63% 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 60.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | -0.08 |
ROIC/WACCN/A
WACCN/A
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.
- EARN has a worse Current ratio (0.18) than 89.54% 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 89.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. EARN Growth Analysis
3.1 Past
- EARN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.70%.
- The earnings per share for EARN have been decreasing by -31.03% on average. This is quite bad
- The Revenue has grown by 34.56% 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)-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
- EARN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.31% yearly.
- The Revenue is expected to grow by 14.40% on average over the next years. This is quite good.
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.
- 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. EARN Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 12.81, which indicates a correct valuation of EARN.
- EARN's Price/Earnings ratio is in line with the industry average.
- EARN is valuated cheaply when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
- EARN is valuated cheaply with a Price/Forward Earnings ratio of 4.30.
- EARN's Price/Forward Earnings ratio is rather cheap when compared to the industry. EARN is cheaper than 92.89% of the companies in the same industry.
- EARN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 4.3 |
4.2 Price Multiples
- 98.33% 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 | 0.47 | ||
| EV/EBITDA | N/A |
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.
- The decent profitability rating of EARN may justify a higher PE ratio.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y8.31%
EPS Next 3YN/A
5. EARN Dividend Analysis
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 6.90, EARN pays a better dividend. On top of this EARN pays more dividend than 89.96% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, 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 paid a dividend for at least 10 years, which is 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
5.3 Sustainability
- EARN pays out 74.71% of its income as dividend. This is not a sustainable payout ratio.
DP74.71%
EPS Next 2Y8.31%
EPS Next 3YN/A
EARN Fundamentals: All Metrics, Ratios and Statistics
NYSE:EARN (4/6/2026, 12:31:19 PM)
4.61
+0.03 (+0.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)03-10 2026-03-10/amc
Earnings (Next)05-18 2026-05-18/amc
Inst Owners10.34%
Inst Owner Change0%
Ins Owners0.95%
Ins Owner Change-1.97%
Market Cap173.20M
Revenue(TTM)65.80M
Net Income(TTM)14.81M
Analysts76
Price Target5.61 (21.69%)
Short Float %3.37%
Short Ratio2.33
Dividend
| Industry Rank | Sector 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 2026-03-31 (0.08)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 4.3 | ||
| P/S | 2.63 | ||
| P/FCF | 0.47 | ||
| P/OCF | 0.47 | ||
| P/B | 0.77 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.36
EY7.81%
EPS(NY)1.07
Fwd EY23.23%
FCF(TTM)9.81
FCFY212.82%
OCF(TTM)9.81
OCFY212.82%
SpS1.75
BVpS5.99
TBVpS5.99
PEG (NY)0.76
PEG (5Y)N/A
Graham Number6.97
Profitability
| Industry Rank | Sector 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 Rank | Sector 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.