ELLINGTON CREDIT CO (EARN) Fundamental Analysis & Valuation
NYSE:EARN • US2885781078
4.65 USD
+0.01 (+0.22%)
At close: Mar 11, 2026
4.65 USD
0 (0%)
After Hours: 3/11/2026, 8:04:00 PM
This EARN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
EARN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 242 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 decent growth rate and is not valued too expensively.
1. EARN Profitability Analysis
1.1 Basic Checks
- In the past year EARN was profitable.
- EARN had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 3.56%, EARN is in line with its industry, outperforming 57.44% of the companies in the same industry.
- EARN has a Return On Equity (6.58%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 7.19%, EARN is in the better half of the industry, outperforming 78.93% 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
- Looking at the Profit Margin, with a value of 22.51%, EARN is in line with its industry, outperforming 57.44% of the companies in the same industry.
- In the last couple of years the Profit Margin of EARN has declined.
- EARN has a better Operating Margin (48.72%) than 86.36% of its industry peers.
- EARN's Operating Margin has improved in the last couple of years.
- EARN has a better Gross Margin (57.37%) than 66.12% of its industry peers.
- In the last couple of years the Gross Margin of EARN has grown nicely.
| 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
- EARN has more shares outstanding than it did 1 year ago.
- EARN has more shares outstanding than it did 5 years ago.
- EARN has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -0.07, 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 -0.07, 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.
- The Debt to FCF ratio of EARN (0.48) is better than 92.15% 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 Debt to Equity ratio (0.78) which is comparable to the rest of the industry.
- Although EARN's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | -0.07 |
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 87.60% of its industry peers.
- A Quick Ratio of 0.18 indicates that EARN may have some problems paying its short term obligations.
- With a Quick ratio value of 0.18, EARN is not doing good in the industry: 87.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. EARN Growth Analysis
3.1 Past
- The earnings per share for EARN have decreased strongly by -67.70% in the last year.
- 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.
- 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 16.81% yearly.
EPS Next Y16.76%
EPS Next 2Y8.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year24.47%
Revenue Next 2Y16.81%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. EARN Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 12.92, which indicates a correct valuation of EARN.
- The rest of the industry has a similar Price/Earnings ratio as EARN.
- The average S&P500 Price/Earnings ratio is at 26.15. EARN is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 4.34, the valuation of EARN can be described as very cheap.
- EARN's Price/Forward Earnings ratio is rather cheap when compared to the industry. EARN is cheaper than 94.21% 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 24.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 4.34 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, EARN is valued cheaper than 98.35% of the companies in the same industry.
| 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.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y8.31%
EPS Next 3YN/A
5. EARN Dividend Analysis
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 6.63. EARN pays more dividend than 92.98% of the companies in the same industry.
- EARN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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
- 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
4.65
+0.01 (+0.22%)
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 Change-9.15%
Ins Owners0.95%
Ins Owner Change-1.2%
Market Cap174.70M
Revenue(TTM)65.80M
Net Income(TTM)14.81M
Analysts76
Price Target5.87 (26.24%)
Short Float %1.47%
Short Ratio1.21
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 Years1
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)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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 4.34 | ||
| P/S | 2.65 | ||
| P/FCF | 0.47 | ||
| P/OCF | 0.47 | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.36
EY7.74%
EPS(NY)1.07
Fwd EY23.03%
FCF(TTM)9.81
FCFY210.99%
OCF(TTM)9.81
OCFY210.99%
SpS1.75
BVpS5.99
TBVpS5.99
PEG (NY)0.77
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 | -0.07 |
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 Year24.47%
Revenue Next 2Y16.81%
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 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 12.92 and the Price/Book (PB) ratio is 0.78.
How financially healthy is ELLINGTON CREDIT CO?
The financial health rating of ELLINGTON CREDIT CO (EARN) is 3 / 10.