Ellington Financial Inc.
Ellington Financial Inc. Fundamental Analysis
Ellington Financial Inc. (EFC-PE) shows weak financial fundamentals with a PE ratio of 37.13, profit margin of 48.75%, and ROE of 8.57%. The company generates $0.2B in annual revenue with weak year-over-year growth of -1.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -61.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EFC-PE's fundamental strength across five key dimensions:
Efficiency Score
WeakEFC-PE struggles to generate sufficient returns from assets.
Valuation Score
WeakEFC-PE trades at a premium to fair value.
Growth Score
ModerateEFC-PE shows steady but slowing expansion.
Financial Health Score
ModerateEFC-PE shows balanced financial health with some risks.
Profitability Score
WeakEFC-PE struggles to sustain strong margins.
Key Financial Metrics
Is EFC-PE Expensive or Cheap?
P/E Ratio
EFC-PE trades at 37.13 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EFC-PE's PEG of 3.77 indicates potential overvaluation.
Price to Book
The market values Ellington Financial Inc. at 2.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -101.50 times EBITDA. This is generally considered low.
How Well Does EFC-PE Make Money?
Net Profit Margin
For every $100 in sales, Ellington Financial Inc. keeps $48.75 as profit after all expenses.
Operating Margin
Core operations generate 50.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.57 in profit for every $100 of shareholder equity.
ROA
Ellington Financial Inc. generates $0.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ellington Financial Inc. generates limited operating cash flow of $-292.12M, signaling weaker underlying cash strength.
Free Cash Flow
Ellington Financial Inc. generates weak or negative free cash flow of $-292.12M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.38 in free cash annually.
FCF Yield
EFC-PE converts -7.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How EFC-PE Stacks Against Its Sector Peers
| Metric | EFC-PE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.13 | 24.23 | Worse (Expensive) |
| ROE | 8.57% | 659.00% | Weak |
| Net Margin | 48.75% | 4497.00% | Weak |
| Debt/Equity | 0.00 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.00 | 13.87 | Weak Liquidity |
| ROA | 0.79% | -1390.00% (disorted) | Weak |
EFC-PE outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ellington Financial Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-24.18%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-100.00%
Industry Style: Income, Inflation Hedge, REIT
Declining