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%)
EARN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 decent growth rate and is not valued too expensively.
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's Return On Assets of 3.39% is in line compared to the rest of the industry. EARN outperforms 55.88% of its industry peers.
- EARN has a Return On Equity (6.28%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.18%, EARN is in the better half of the industry, outperforming 78.57% 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's Profit Margin of 21.40% is in line compared to the rest of the industry. EARN outperforms 58.40% of its industry peers.
- EARN's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 48.59%, EARN belongs to the top 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.
- With a decent Gross Margin value of 57.52%, EARN is doing good in the industry, outperforming 65.13% 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
- Based on the Altman-Z score of 0.05, 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 0.05, EARN is doing worse than 73.11% 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.
- The Debt to FCF ratio of EARN (0.47) is better than 92.02% 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.
- Looking at the Debt to Equity ratio, with a value of 0.78, EARN is in line with its industry, outperforming 56.30% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 0.05 |
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 88.66% 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.
- Looking at the Quick ratio, with a value of 0.18, EARN is doing worse than 88.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
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.
- Looking at the last year, EARN shows a very strong growth in Revenue. The Revenue has grown by 34.92%.
- The Revenue has been growing slightly by 2.60% on average over the past years.
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
- The Earnings Per Share is expected to grow by 7.24% on average over the next years.
- EARN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.03% yearly.
EPS Next Y11.85%
EPS Next 2Y7.24%
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.
- 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 17.09, EARN is valued on the expensive side.
- EARN's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of EARN to the average of the S&P500 Index (27.38), we can say EARN is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 5.34, the valuation of EARN can be described as very cheap.
- 94.96% of the companies in the same industry are more expensive than EARN, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of EARN to the average of the S&P500 Index (24.29), we can say EARN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 5.34 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EARN indicates a rather cheap valuation: EARN is cheaper than 98.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.58 | ||
| EV/EBITDA | N/A |
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)1.44
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.
- EARN's Dividend Yield is rather good when compared to the industry average which is at 6.10. EARN pays more dividend than 94.12% of the companies in the same industry.
- EARN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.84.
| 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.
- EARN has decreased its dividend 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 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 Target5.87 (4.08%)
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-Date01-30 2026-01-30 (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)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)-2.13%
PT rev (3m)-6.12%
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%
Revenue NY rev (3m)11.97%
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 | 0.05 |
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 Year17.28%
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 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.