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ELLINGTON FINANCIAL INC (EFC) Stock Fundamental Analysis

NYSE:EFC - New York Stock Exchange, Inc. - US28852N1090 - REIT - Currency: USD

13.1  -0.02 (-0.15%)

After market: 13.11 +0.01 (+0.08%)

Fundamental Rating

3

EFC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of EFC have multiple concerns. EFC is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

EFC had positive earnings in the past year.
In the past year EFC has reported a negative cash flow from operations.
EFC had positive earnings in 4 of the past 5 years.
Of the past 5 years EFC 4 years had a positive operating cash flow.
EFC Yearly Net Income VS EBIT VS OCF VS FCFEFC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M 600M

1.2 Ratios

With a Return On Assets value of 0.68%, EFC perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
EFC has a better Return On Equity (6.72%) than 60.94% of its industry peers.
Industry RankSector Rank
ROA 0.68%
ROE 6.72%
ROIC N/A
ROA(3y)0.74%
ROA(5y)0.8%
ROE(3y)2.2%
ROE(5y)3.07%
ROIC(3y)N/A
ROIC(5y)N/A
EFC Yearly ROA, ROE, ROICEFC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5

1.3 Margins

Looking at the Profit Margin, with a value of 26.46%, EFC belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
EFC's Profit Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.99%, EFC is doing worse than 64.06% of the companies in the same industry.
In the last couple of years the Gross Margin of EFC has declined.
Industry RankSector Rank
OM N/A
PM (TTM) 26.46%
GM 23.99%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y18.39%
PM growth 5Y-13.81%
GM growth 3Y-24.87%
GM growth 5Y-14.18%
EFC Yearly Profit, Operating, Gross MarginsEFC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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1

2. Health

2.1 Basic Checks

EFC does not have a ROIC to compare to the WACC, probably because it is not profitable.
EFC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EFC has more shares outstanding
The debt/assets ratio for EFC has been reduced compared to a year ago.
EFC Yearly Shares OutstandingEFC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
EFC Yearly Total Debt VS Total AssetsEFC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.2 Solvency

Based on the Altman-Z score of -0.13, we must say that EFC is in the distress zone and has some risk of bankruptcy.
EFC has a Altman-Z score (-0.13) which is comparable to the rest of the industry.
EFC has a Debt/Equity ratio of 8.59. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 8.59, EFC is doing worse than 87.50% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 8.59
Debt/FCF N/A
Altman-Z -0.13
ROIC/WACCN/A
WACC2.84%
EFC Yearly LT Debt VS Equity VS FCFEFC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B 10B

2.3 Liquidity

EFC has a Current Ratio of 0.17. This is a bad value and indicates that EFC is not financially healthy enough and could expect problems in meeting its short term obligations.
EFC has a Current ratio of 0.17. This is comparable to the rest of the industry: EFC outperforms 50.00% of its industry peers.
EFC has a Quick Ratio of 0.17. This is a bad value and indicates that EFC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.17, EFC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.17
Quick Ratio 0.17
EFC Yearly Current Assets VS Current LiabilitesEFC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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6

3. Growth

3.1 Past

The earnings per share for EFC have decreased strongly by -18.99% in the last year.
EFC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.73% yearly.
The Revenue has grown by 12.91% in the past year. This is quite good.
EFC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.35% yearly.
EPS 1Y (TTM)-18.99%
EPS 3Y-4.27%
EPS 5Y-1.73%
EPS Q2Q%21.21%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y28.74%
Revenue growth 5Y22.35%
Sales Q2Q%22.22%

3.2 Future

Based on estimates for the next years, EFC will show a small growth in Earnings Per Share. The EPS will grow by 6.60% on average per year.
Based on estimates for the next years, EFC will show a quite strong growth in Revenue. The Revenue will grow by 19.60% on average per year.
EPS Next Y-1.52%
EPS Next 2Y6.97%
EPS Next 3Y6.6%
EPS Next 5YN/A
Revenue Next Year14.07%
Revenue Next 2Y20.08%
Revenue Next 3Y19.6%
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 stable: in the next years the growth will be about the same than in the last years.
EFC Yearly Revenue VS EstimatesEFC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
EFC Yearly EPS VS EstimatesEFC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 2

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.23 indicates a reasonable valuation of EFC.
EFC's Price/Earnings ratio is a bit cheaper when compared to the industry. EFC is cheaper than 70.31% of the companies in the same industry.
EFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 8.01, the valuation of EFC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EFC is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
EFC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
Industry RankSector Rank
PE 10.23
Fwd PE 8.01
EFC Price Earnings VS Forward Price EarningsEFC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
EFC Per share dataEFC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.97%
EPS Next 3Y6.6%

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5

5. Dividend

5.1 Amount

EFC has a Yearly Dividend Yield of 11.89%, which is a nice return.
EFC's Dividend Yield is comparable with the industry average which is at 12.96.
Compared to an average S&P500 Dividend Yield of 2.27, EFC pays a better dividend.
Industry RankSector Rank
Dividend Yield 11.89%

5.2 History

The dividend of EFC has a limited annual growth rate of 4.09%.
EFC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.09%
Div Incr Years0
Div Non Decr Years0
EFC Yearly Dividends per shareEFC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

151.24% of the earnings are spent on dividend by EFC. This is not a sustainable payout ratio.
The dividend of EFC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP151.24%
EPS Next 2Y6.97%
EPS Next 3Y6.6%
EFC Yearly Income VS Free CF VS DividendEFC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M 600M
EFC Dividend Payout.EFC Dividend Payout, showing the Payout Ratio.EFC Dividend Payout.PayoutRetained Earnings

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ELLINGTON FINANCIAL INC

NYSE:EFC (2/21/2025, 8:15:17 PM)

After market: 13.11 +0.01 (+0.08%)

13.1

-0.02 (-0.15%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-27 2025-02-27/amc
Inst Owners58.14%
Inst Owner Change-98.06%
Ins Owners2.36%
Ins Owner Change1.18%
Market Cap1.19B
Analysts78.33
Price Target14.03 (7.1%)
Short Float %6.32%
Short Ratio6.08
Dividend
Industry RankSector Rank
Dividend Yield 11.89%
Yearly Dividend2.03
Dividend Growth(5Y)4.09%
DP151.24%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-28 2025-02-28 (0.13)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.7%
Min EPS beat(2)-7.4%
Max EPS beat(2)8.8%
EPS beat(4)1
Avg EPS beat(4)-13.69%
Min EPS beat(4)-33.17%
Max EPS beat(4)8.8%
EPS beat(8)2
Avg EPS beat(8)-11.91%
EPS beat(12)3
Avg EPS beat(12)-9.66%
EPS beat(16)5
Avg EPS beat(16)-7.97%
Revenue beat(2)0
Avg Revenue beat(2)-22.79%
Min Revenue beat(2)-32.94%
Max Revenue beat(2)-12.65%
Revenue beat(4)0
Avg Revenue beat(4)-21.38%
Min Revenue beat(4)-35.05%
Max Revenue beat(4)-4.88%
Revenue beat(8)2
Avg Revenue beat(8)14.1%
Revenue beat(12)6
Avg Revenue beat(12)32.17%
Revenue beat(16)10
Avg Revenue beat(16)31.64%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)1.63%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)0.74%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.45%
Valuation
Industry RankSector Rank
PE 10.23
Fwd PE 8.01
P/S 2.91
P/FCF N/A
P/OCF N/A
P/B 0.74
P/tB 0.74
EV/EBITDA N/A
EPS(TTM)1.28
EY9.77%
EPS(NY)1.64
Fwd EY12.49%
FCF(TTM)-4.07
FCFYN/A
OCF(TTM)-4.07
OCFYN/A
SpS4.5
BVpS17.73
TBVpS17.7
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.68%
ROE 6.72%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 26.46%
GM 23.99%
FCFM N/A
ROA(3y)0.74%
ROA(5y)0.8%
ROE(3y)2.2%
ROE(5y)3.07%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y18.39%
PM growth 5Y-13.81%
GM growth 3Y-24.87%
GM growth 5Y-14.18%
F-Score4
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 8.59
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 0.01%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.17
Quick Ratio 0.17
Altman-Z -0.13
F-Score4
WACC2.84%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.44%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.99%
EPS 3Y-4.27%
EPS 5Y-1.73%
EPS Q2Q%21.21%
EPS Next Y-1.52%
EPS Next 2Y6.97%
EPS Next 3Y6.6%
EPS Next 5YN/A
Revenue 1Y (TTM)12.91%
Revenue growth 3Y28.74%
Revenue growth 5Y22.35%
Sales Q2Q%22.22%
Revenue Next Year14.07%
Revenue Next 2Y20.08%
Revenue Next 3Y19.6%
Revenue Next 5YN/A
EBIT growth 1Y-65.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-689.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-688.04%
OCF growth 3YN/A
OCF growth 5YN/A