Ellington Credit Company (EARN) Financial Ratios
13 years of historical data (2012–2024) · Financial Services · Asset Management
EV/EBITDA
↑
100.52
-8% vs avg
5yr avg: 109.12
30Y Low55.6·High88.2
P/FCF
↑
19.99
↑+128% vs avg
5yr avg: 8.77
30Y Low2.3·High19.7
P/B Ratio
↓
0.68
↓-19% vs avg
5yr avg: 0.84
30Y Low0.6·High1.0
ROE
↓
4.0%
↓+401% vs avg
5yr avg: -1.3%
30Y Low-23%·High14%
Debt/EBITDA
↑
79.34
↓-18% vs avg
5yr avg: 96.61
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
EARN Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Ellington Credit Company trades at 20.2x earnings, 10% above its 5-year average of 18.5x, sitting at the 86th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.4x, the stock trades at a premium of 51%. On a free-cash-flow basis, the stock trades at 20.0x P/FCF, 128% above the 5-year average of 8.8x.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $182M | $180M | $91M | $90M | $132M | $161M | $135M | $131M | $140M | $119M | $113M |
| Enterprise Value | $713M | $711M | $782M | $898M | $1.1B | $1.1B | $1.4B | $1.6B | $1.7B | $1.3B | $1.3B |
| P/E Ratio → | 20.21 | 27.58 | 19.77 | — | — | 8.00 | 6.06 | — | 12.95 | 9.93 | 3742.42 |
| P/S Ratio | 3.59 | 3.55 | 1.65 | — | 60.84 | 4.49 | 2.15 | 4.90 | 3.93 | 4.53 | 9.90 |
| P/B Ratio | 0.68 | 0.93 | 0.67 | 0.80 | 0.85 | 0.97 | 0.84 | 0.85 | 0.72 | 0.84 | 0.78 |
| P/FCF | 19.99 | 19.73 | — | 4.03 | 4.73 | 6.61 | 7.71 | 4.54 | 2.32 | 5.95 | 4.55 |
| P/OCF | 19.99 | 19.73 | — | 4.03 | 4.73 | 6.61 | 7.71 | 4.54 | 2.32 | 5.95 | 4.55 |
P/E links to full P/E history page with 30-year chart
EARN EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Ellington Credit Company's enterprise value stands at 100.5x EBITDA, 8% below its 5-year average of 109.1x. The Financial Services sector median is 11.4x, placing the stock at a 781% premium on an enterprise-value basis.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 14.03 | 14.13 | — | 520.59 | 31.14 | 22.22 | 59.63 | 47.30 | 49.00 | 113.53 |
| EV / EBITDA | 100.52 | 100.19 | 171.57 | — | — | 55.60 | 62.73 | — | 155.80 | 107.77 | 43182.51 |
| EV / EBIT | 100.52 | 100.19 | 171.57 | — | — | 55.60 | 62.73 | — | 155.80 | 107.77 | 43182.51 |
| EV / FCF | — | 78.02 | — | 40.06 | 40.44 | 45.88 | 79.63 | 55.25 | 27.90 | 64.39 | 52.23 |
EARN Profitability
Margins and return-on-capital ratios measuring operating efficiency
Ellington Credit Company earns an operating margin of 14.0%, below the Financial Services sector average of 21.2%. Operating margins have compressed from 294.6% to 14.0% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 4.0% is modest, trailing the sector median of 9.4%. ROIC of 0.7% represents below-average returns on invested capital versus a sector median of 5.7%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 31.3% | 31.3% | 18.2% | 244.6% | -25.7% | 72.2% | 43.8% | -21.6% | 46.4% | 64.6% | 45.4% |
| Operating Margin | 14.0% | 14.0% | 8.2% | 294.6% | -291.3% | 56.0% | 35.4% | -42.3% | 30.4% | 45.5% | 0.3% |
| Net Profit Margin | 13.0% | 13.0% | 8.2% | 294.6% | -291.3% | 56.0% | 35.4% | -42.3% | 30.4% | 45.5% | 0.3% |
Return on Capital
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.0% | 4.0% | 3.7% | -22.7% | -3.9% | 12.3% | 14.1% | -6.5% | 6.5% | 8.3% | 0.0% |
| ROA | 0.7% | 0.7% | 0.5% | -2.3% | -0.5% | 1.5% | 1.4% | -0.6% | 0.7% | 0.8% | 0.0% |
| ROIC | 0.7% | 0.7% | 0.4% | -2.1% | -0.4% | 1.1% | 1.1% | -0.5% | 0.5% | 0.7% | 0.0% |
| ROCE | 3.7% | 3.7% | 2.9% | -8.8% | -1.8% | 11.0% | 11.9% | -4.8% | 4.2% | 4.3% | 0.0% |
EARN Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Ellington Credit Company carries a Debt/EBITDA ratio of 79.3x, which is highly leveraged (1820% above the sector average of 4.1x). Net debt stands at $531M ($563M total debt minus $32M cash). Interest coverage of just 0.2x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.91 | 2.91 | 5.35 | 7.49 | 6.90 | 6.10 | 8.06 | 9.63 | 8.29 | 8.46 | 8.44 |
| Debt / EBITDA | 79.34 | 79.34 | 160.02 | — | — | 50.48 | 58.24 | — | 148.05 | 100.62 | 40757.30 |
| Net Debt / Equity | — | 2.74 | 5.07 | 7.18 | 6.46 | 5.75 | 7.84 | 9.51 | 8.00 | 8.22 | 8.16 |
| Net Debt / EBITDA | 74.85 | 74.85 | 151.57 | — | — | 47.59 | 56.66 | — | 142.85 | 97.81 | 39418.43 |
| Debt / FCF | — | 58.29 | — | 36.03 | 35.72 | 39.27 | 71.92 | 50.71 | 25.58 | 58.43 | 47.68 |
| Interest Coverage | 0.20 | 0.20 | 0.10 | -2.04 | -2.32 | 2.02 | 0.63 | -0.35 | 0.57 | 1.28 | 0.00 |
EARN Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.13x is below 1.0, meaning current liabilities exceed current assets.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.13 | 0.13 | 0.12 | 0.10 | 0.15 | 0.11 | 0.06 | 0.08 | 0.07 | 0.10 | 0.19 |
| Quick Ratio | 0.13 | 0.13 | 0.12 | 0.10 | 0.15 | 0.11 | 0.06 | 0.08 | 0.07 | 0.10 | 0.19 |
| Cash Ratio | 0.05 | 0.05 | 0.05 | 0.04 | 0.06 | 0.06 | 0.03 | 0.01 | 0.04 | 0.03 | 0.03 |
| Asset Turnover | — | 0.06 | 0.06 | -0.01 | 0.00 | 0.03 | 0.04 | 0.02 | 0.02 | 0.02 | 0.01 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
EARN Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Ellington Credit Company returns 16.9% to shareholders annually primarily through dividends. The payout ratio exceeds 100% at 337.3%, meaning the company is paying out more than it earns — this level is unsustainable long-term without earnings recovery. The earnings yield of 4.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 16.9% | 12.4% | 15.5% | 15.4% | 13.1% | 8.6% | 11.4% | 14.6% | 12.6% | 13.1% | 17.0% |
| Payout Ratio | 337.3% | 337.3% | 309.8% | — | — | 68.8% | 69.5% | — | 163.0% | 130.3% | 64023.3% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.9% | 3.6% | 5.1% | — | — | 12.5% | 16.5% | — | 7.7% | 10.1% | 0.0% |
| FCF Yield | 5.0% | 5.1% | — | 24.8% | 21.2% | 15.1% | 13.0% | 22.0% | 43.1% | 16.8% | 22.0% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.3% | 0.0% | 0.6% | 0.6% | 7.2% | 0.0% | 0.2% | 0.3% |
| Total Shareholder Yield | 16.9% | 12.4% | 15.5% | 15.7% | 13.1% | 9.2% | 12.0% | 21.7% | 12.6% | 13.2% | 17.3% |
| Shares Outstanding | — | $27M | $15M | $13M | $13M | $12M | $12M | $13M | $12M | $9M | $9M |
Peer Comparison
Compare EARN with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 EARNYou | $182M | 20.2 | 100.5 | 20.0 | 31.3% | 14.0% | 4.0% | 0.7% | 79.3 |
 EFC | $1B | 11.4 | 39.5 | 2.7 | 84.3% | 61.6% | 8.5% | 3.1% | 37.0 |
 AGNC | $10B | 11.6 | 2.4 | 112.6 | 100.0% | 79.6% | 9.6% | 34.0% | 0.0 |
 NLY | $16B | 7.7 | 18.3 | — | 99.9% | 102.6% | 14.1% | 6.4% | 16.3 |
 MFA | $997M | 5.8 | 17.1 | 13.1 | 96.2% | 78.8% | 9.6% | 4.4% | 15.9 |
 MITT | $250M | 8.8 | 18.3 | 4.2 | 94.7% | 96.9% | 8.8% | 4.5% | 17.9 |
 TWO | $1B | -2.8 | 197.8 | 14.5 | 97.9% | 68.7% | -23.2% | 3.1% | 188.0 |
 IVR | $576M | 5.2 | 19.1 | 3.7 | 96.7% | 94.5% | 13.3% | 4.0% | 17.5 |
 DX | $3B | 5.4 | 21.2 | — | 100.0% | 175.6% | 17.5% | 4.8% | 18.8 |
 ORC | $1B | 5.6 | 22.8 | 8.8 | 97.8% | 88.6% | 15.6% | 2.1% | 22.0 |
 CHMI | $95M | -25.8 | 22.5 | — | 91.2% | 55.9% | 2.9% | 4.9% | 21.8 |
| Financial Services Median | — | 13.4 | 11.4 | 10.6 | 63.4% | 21.2% | 9.4% | 5.7% | 4.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 13 years · Updated daily
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Start ComparisonEARN — Frequently Asked Questions
Quick answers to the most common questions about buying EARN stock.
What is Ellington Credit Company's P/E ratio?
Ellington Credit Company's current P/E ratio is 20.2x. The historical average is 13.4x. This places it at the 86th percentile of its historical range.
What is Ellington Credit Company's EV/EBITDA?
Ellington Credit Company's current EV/EBITDA is 100.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 68.9x.
What is Ellington Credit Company's ROE?
Ellington Credit Company's return on equity (ROE) is 4.0%. The historical average is 1.3%.
Is EARN stock overvalued?
Based on historical data, Ellington Credit Company is trading at a P/E of 20.2x. This is at the 86th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Ellington Credit Company's dividend yield?
Ellington Credit Company's current dividend yield is 16.86% with a payout ratio of 337.3%.
What are Ellington Credit Company's profit margins?
Ellington Credit Company has 31.3% gross margin and 14.0% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Ellington Credit Company have?
Ellington Credit Company's Debt/EBITDA ratio is 79.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.