ELLINGTON CREDIT CO (EARN) Stock Price, Quote, News and Overview
NYSE:EARN - New York Stock Exchange, Inc. - US2885781078 - Currency: USD
EARN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. EARN has a bad profitability rating. Also its financial health evaluation is rather negative. EARN has a correct valuation and a medium 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.
In multiple years EARN reported negative net income over the last 5 years.
Of the past 5 years EARN 4 years had a positive operating cash flow.
1.2 Ratios
EARN's Return On Assets of 0.80% is on the low side compared to the rest of the industry. EARN is outperformed by 68.24% of its industry peers.
EARN has a worse Return On Equity (3.40%) than 64.81% of its industry peers.
EARN has a worse Return On Invested Capital (0.63%) than 72.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 3.4% | ||
| ROIC | 0.63% |
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
With a Profit Margin value of 13.21%, EARN perfoms like the industry average, outperforming 47.64% of the companies in the same industry.
In the last couple of years the Profit Margin of EARN has declined.
EARN's Operating Margin of 12.60% is on the low side compared to the rest of the industry. EARN is outperformed by 69.96% of its industry peers.
EARN's Operating Margin has improved in the last couple of years.
EARN's Gross Margin of 17.78% is on the low side compared to the rest of the industry. EARN is outperformed by 71.24% of its industry peers.
In the last couple of years the Gross Margin of EARN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.6% | ||
| PM (TTM) | 13.21% | ||
| GM | 17.78% |
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
The number of shares outstanding for EARN has been increased compared to 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 -0.77. This is a bad value and indicates that EARN is not financially healthy and even has some risk of bankruptcy.
EARN has a worse Altman-Z score (-0.77) than 84.55% of its industry peers.
EARN has a debt to FCF ratio of 64.26. This is a negative value and a sign of low solvency as EARN would need 64.26 years to pay back of all of its debts.
EARN has a Debt to FCF ratio of 64.26. This is comparable to the rest of the industry: EARN outperforms 41.63% of its industry peers.
A Debt/Equity ratio of 3.02 is on the high side and indicates that EARN has dependencies on debt financing.
EARN's Debt to Equity ratio of 3.02 is on the low side compared to the rest of the industry. EARN is outperformed by 82.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.02 | ||
| Debt/FCF | 64.26 | ||
| Altman-Z | -0.77 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
EARN has a Current Ratio of 0.12. 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 Current ratio of 0.12. This is amonst the worse of the industry: EARN underperforms 92.27% of its industry peers.
A Quick Ratio of 0.12 indicates that EARN may have some problems paying its short term obligations.
EARN's Quick ratio of 0.12 is on the low side compared to the rest of the industry. EARN is outperformed by 91.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
EARN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.17%, which is quite impressive.
Measured over the past 5 years, EARN shows a small growth in Earnings Per Share. The EPS has been growing by 5.33% on average per year.
The Revenue has grown by 26.06% 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)27.17%
EPS 3Y-2.42%
EPS 5Y5.33%
EPS Q2Q%-3.7%
Revenue 1Y (TTM)26.06%
Revenue growth 3Y20.7%
Revenue growth 5Y2.6%
Sales Q2Q%3214.34%
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 1.79% on average per year.
The Revenue is expected to grow by 53.62% on average over the next years. This is a very strong growth
EPS Next Y-18.46%
EPS Next 2Y-4.5%
EPS Next 3Y1.79%
EPS Next 5YN/A
Revenue Next Year155.08%
Revenue Next 2Y73.95%
Revenue Next 3Y53.62%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 5.09, the valuation of EARN can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of EARN indicates a rather cheap valuation: EARN is cheaper than 94.85% of the companies listed in the same industry.
EARN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
EARN is valuated cheaply with a Price/Forward Earnings ratio of 5.53.
Based on the Price/Forward Earnings ratio, EARN is valued cheaply inside the industry as 96.57% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EARN to the average of the S&P500 Index (21.76), we can say EARN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.09 | ||
| Fwd PE | 5.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EARN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.53 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y-4.5%
EPS Next 3Y1.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 16.67%, EARN is a good candidate for dividend investing.
EARN's Dividend Yield is rather good when compared to the industry average which is at 8.10. EARN pays more dividend than 94.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, EARN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.67% |
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 337.31% of its income as dividend. This is not a sustainable payout ratio.
DP337.31%
EPS Next 2Y-4.5%
EPS Next 3Y1.79%
5.95
+0.03 (+0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners22.77%
Inst Owner Change0%
Ins Owners0.93%
Ins Owner Change2.02%
Market Cap223.48M
Analysts76
Price Target6.12 (2.86%)
Short Float %0.56%
Short Ratio0.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.67% |
Yearly Dividend0.92
Dividend Growth(5Y)-5.74%
DP337.31%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.86%
Min EPS beat(2)-11.76%
Max EPS beat(2)-1.96%
EPS beat(4)2
Avg EPS beat(4)4.21%
Min EPS beat(4)-11.76%
Max EPS beat(4)23.84%
EPS beat(8)3
Avg EPS beat(8)-2.71%
EPS beat(12)5
Avg EPS beat(12)-0.49%
EPS beat(16)6
Avg EPS beat(16)-1.38%
Revenue beat(2)0
Avg Revenue beat(2)-13.65%
Min Revenue beat(2)-16.2%
Max Revenue beat(2)-11.11%
Revenue beat(4)0
Avg Revenue beat(4)-31.81%
Min Revenue beat(4)-92.48%
Max Revenue beat(4)-7.46%
Revenue beat(8)0
Avg Revenue beat(8)-95.82%
Revenue beat(12)4
Avg Revenue beat(12)-34.78%
Revenue beat(16)7
Avg Revenue beat(16)-20.01%
PT rev (1m)2.13%
PT rev (3m)-17.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.88%
EPS NY rev (1m)-9.94%
EPS NY rev (3m)-9.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)11.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.09 | ||
| Fwd PE | 5.53 | ||
| P/S | 4.48 | ||
| P/FCF | 24.53 | ||
| P/OCF | 24.53 | ||
| P/B | 1.15 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.17
EY19.66%
EPS(NY)1.08
Fwd EY18.09%
FCF(TTM)0.24
FCFY4.08%
OCF(TTM)0.24
OCFY4.08%
SpS1.33
BVpS5.16
TBVpS5.16
PEG (NY)N/A
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 3.4% | ||
| ROCE | 3.15% | ||
| ROIC | 0.63% | ||
| ROICexc | 0.66% | ||
| ROICexgc | 0.7% | ||
| OM | 12.6% | ||
| PM (TTM) | 13.21% | ||
| GM | 17.78% | ||
| FCFM | 18.27% |
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
ROICexcg growth 3Y-20.19%
ROICexcg 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-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.02 | ||
| Debt/FCF | 64.26 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.18 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 138.35% | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | -0.77 |
F-Score7
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)27.17%
EPS 3Y-2.42%
EPS 5Y5.33%
EPS Q2Q%-3.7%
EPS Next Y-18.46%
EPS Next 2Y-4.5%
EPS Next 3Y1.79%
EPS Next 5YN/A
Revenue 1Y (TTM)26.06%
Revenue growth 3Y20.7%
Revenue growth 5Y2.6%
Sales Q2Q%3214.34%
Revenue Next Year155.08%
Revenue Next 2Y73.95%
Revenue Next 3Y53.62%
Revenue Next 5YN/A
EBIT growth 1Y176.21%
EBIT growth 3Y-31.89%
EBIT growth 5Y13.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y190.92%
FCF growth 3Y-31.12%
FCF growth 5Y-12.27%
OCF growth 1Y190.92%
OCF growth 3Y-31.12%
OCF growth 5Y-12.27%