ELLINGTON CREDIT CO (EARN) Fundamental Analysis & Valuation
NYSE:EARN • US2885781078
Current stock price
4.58 USD
+0.02 (+0.44%)
At close:
4.56 USD
-0.02 (-0.44%)
After Hours:
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
- EARN had positive earnings in the past year.
- EARN had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: EARN reported negative net income in multiple years.
- Of the past 5 years EARN 4 years had a positive operating cash flow.
1.2 Ratios
- EARN has a Return On Assets (3.56%) which is in line with its industry peers.
- EARN has a Return On Equity (6.58%) which is in line with its industry peers.
- EARN has a Return On Invested Capital of 7.19%. This is in the better half of the industry: EARN outperforms 77.92% of its industry peers.
| 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 60.00% of the companies in the same industry.
- EARN's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 48.72%, EARN belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
- In the last couple of years the Operating Margin of EARN has grown nicely.
- EARN has a Gross Margin of 57.37%. This is in the better half of the industry: EARN outperforms 65.42% 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
- The number of shares outstanding for EARN has been increased compared to 1 year ago.
- 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
- 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 75.83% 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's Debt to FCF ratio of 0.48 is amongst the best of the industry. EARN outperforms 91.67% of its industry peers.
- A Debt/Equity ratio of 0.78 indicates that EARN is somewhat dependend on debt financing.
- EARN's Debt to Equity ratio of 0.78 is fine compared to the rest of the industry. EARN outperforms 60.83% 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 89.58% of its industry peers.
- A Quick Ratio of 0.18 indicates that EARN may have some problems paying its short term obligations.
- EARN's Quick ratio of 0.18 is on the low side compared to the rest of the industry. EARN is outperformed by 89.58% 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%.
- 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 34.56% in the past year. This is a very strong growth!
- Measured over the past years, EARN shows a small growth in Revenue. The Revenue has been growing by 2.60% on average per year.
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
- The Earnings Per Share is expected to grow by 8.31% on average over the next years. This is quite good.
- EARN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.40% yearly.
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.
- 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
- EARN is valuated correctly with a Price/Earnings ratio of 12.72.
- The rest of the industry has a similar Price/Earnings ratio as EARN.
- EARN is valuated cheaply when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 4.28, the valuation of EARN can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EARN indicates a rather cheap valuation: EARN is cheaper than 92.92% of the companies listed 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 22.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 4.28 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, EARN is valued cheaper than 98.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.47 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- EARN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.76
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 6.85. EARN pays more dividend than 89.58% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.88, 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 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 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
4.58
+0.02 (+0.44%)
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 Cap172.07M
Revenue(TTM)65.80M
Net Income(TTM)14.81M
Analysts76
Price Target5.61 (22.49%)
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 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)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)4.85%
EPS NY rev (3m)3.81%
Revenue NQ rev (1m)-1.97%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 4.28 | ||
| P/S | 2.61 | ||
| P/FCF | 0.47 | ||
| P/OCF | 0.47 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.36
EY7.86%
EPS(NY)1.07
Fwd EY23.38%
FCF(TTM)9.81
FCFY214.22%
OCF(TTM)9.81
OCFY214.22%
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.