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Ellington Credit (EARN) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Ellington Credit
NYSE•Financial Services•Asset Management
$4.36-0.02(<0.01%)Market closed
Market Cap
$148.30M
P/S
6.2x
P/B
0.6x

Ellington Credit Company, a closed-end management investment company, focuses on generating current yields and risk-adjusted total returns by investing primarily in collateralized loan obligations. It invests in mezzanine debt and equity tranches. The company was formerly known as Ellington Residential Mortgage REIT and changed its name to Ellington Credit Company in April 2024. Ellington Credit Company was incorporated in 2012 and is headquartered in Old Greenwich, Connecticut.

D

How this company scores

WeakMetricSide Score: 42/100

Grade capped at D — Interest coverage below 1× (0.9x) — earnings cannot cover interest. Strongest: Growth (13/25); weakest: Balance Sheet & Red Flags (8/25).

Profitability11/25
Growth13/25
Balance Sheet & Red Flags8/25
Cash & Earnings Quality10/25
Strengths
Growing revenueLong cash runwayNet cash positionImproving margins
Grade capped at D
  • Interest coverage below 1× (0.9x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 35.3x5y range 6.2x – 97.4x
P/E 35.3x · near its 13-quarter median

Currently near its 13-quarter median.

P/S · 6.2x5y range 5.1x – 61.4x
P/S 6.2x · below its 17-quarter median

Currently below its 17-quarter median.

P/B · 0.6x5y range 0.6x – 1.5x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

Free cash flow has been negative in 4 of the last 8 quarters — earnings are not translating to cash.

Price & Volume
Market Cap $148.30M

Metrics at a Glance

as of March 2025

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$24.04M
5Q
Q. Revenue
$9.25M
4Q
TTM EBITDA
$11.44M
5Q
TTM Op. Income
$11.44M
5Q
Q. Op. Income
$5.80M
4Q
TTM Net Income
$-5.25M
2Q
Q. Net Income
$-7.87M
2Q
EPS
$-0.23
273%
Shares Out.
$34.81M
2Q
$24.04M in TTM revenue grew 1269.1% YoY, reaching $9.25M last quarter. TTM EBITDA of $11.44M and TTM operating income of $11.44M show growth is flowing through to the bottom line. However, net income is negative at $5.25M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 5 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
62.8%
2Q
Op. Margin
62.8%
2Q
Net Margin
-85.1%
2Q
Op. margin of 62.8% is up 738.8% YoY — cost efficiency is improving. Net margin at -85.1% Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
N/A
18%
P/S Ratio
6.2x
3Q
P/B Ratio
0.6x
3Q
P/S of 6.2x and P/B of 0.6x. Over the past year, P/E is up 18% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$783.56M
19%
Cash
$17.38M
23%
Long-Term Debt
N/A
Book Value
$228.50M
6Q
D/E Ratio
N/A
Debt/EBITDA
0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

TTM Free Cash Flow
$10.32M
5Q
FCF Margin
42.9%
39%
FCF / Net Income
-2.0
38%
TTM FCF of $10.32M. The FCF / Net Income ratio of -2.0x means the business consumes cash — it is not yet self-funding. Across the last 8 quarters, free cash flow has risen for 5 consecutive quarters — an improving trend.

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P/B 0.6x
· below its 20-quarter median

Currently below its 20-quarter median.

Cash Burn

Red Flag

The last 4 consecutive quarters had negative FCF — the company is burning cash and may need external funding.

Share Dilution

Red Flag

Shares outstanding increased 66.5% — significant dilution, likely from stock compensation or capital raises.