Ellington Credit Company
Ellington Credit Company Fundamental Analysis
Ellington Credit Company (EARN) shows moderate financial fundamentals with a PE ratio of -12.80, profit margin of -33.95%, and ROE of -6.59%. The company generates $0.0B in annual revenue with strong year-over-year growth of 1082.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EARN's fundamental strength across five key dimensions:
Efficiency Score
WeakEARN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEARN trades at attractive valuation levels.
Growth Score
ModerateEARN shows steady but slowing expansion.
Financial Health Score
ExcellentEARN maintains a strong and stable balance sheet.
Profitability Score
WeakEARN struggles to sustain strong margins.
Key Financial Metrics
Is EARN Expensive or Cheap?
P/E Ratio
EARN trades at -12.80 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EARN's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Ellington Credit Company at 0.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.53 times EBITDA. This is generally considered low.
How Well Does EARN Make Money?
Net Profit Margin
For every $100 in sales, Ellington Credit Company keeps $-33.95 as profit after all expenses.
Operating Margin
Core operations generate -19.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.59 in profit for every $100 of shareholder equity.
ROA
Ellington Credit Company generates $-3.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ellington Credit Company generates strong operating cash flow of $13.62M, reflecting robust business health.
Free Cash Flow
Ellington Credit Company generates strong free cash flow of $13.62M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.36 in free cash annually.
FCF Yield
EARN converts 7.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-12.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.07
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.02
vs 25 benchmark
How EARN Stacks Against Its Sector Peers
| Metric | EARN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -12.80 | 19.08 | Better (Cheaper) |
| ROE | -6.59% | 831.00% | Weak |
| Net Margin | -33.95% | 2291.00% | Weak |
| Debt/Equity | 0.78 | 0.97 | Neutral |
| Current Ratio | 2.39 | 641.28 | Strong Liquidity |
| ROA | -3.48% | -21540.00% (disorted) | Weak |
EARN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ellington Credit Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
17.06%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-86.42%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-76.16%
Industry Style: Value, Dividend, Cyclical
Declining