EJF Investments (LSE:EJFI) - Share price, News & Analysis

EJFI fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	3/6

EJFI Stock Overview

EJF Investments Limited is a principal investment firm.

Rewards

Trading at 60.8% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings have declined by 41.1% per year over past 5 years

Dividend of 8.63% is not well covered by earnings

Does not have a meaningful market cap (£76M)

EJF Investments Competitors

Price History & Performance

Summary of all time highs, changes and price drops for EJF Investments
Historical stock prices
Current Share Price	UK£1.24
52 Week High	UK£1.35
52 Week Low	UK£1.20
Beta	-0.076
1 Month Change	1.22%
3 Month Change	-3.13%
1 Year Change	-3.13%
3 Year Change	-32.06%
5 Year Change	-13.29%
Change since IPO	-13.29%

Recent News & Updates

Aug 03

EJF Investments (LON:EJFI) Has Re-Affirmed Its Dividend Of UK£0.027

EJF Investments Limited ( LON:EJFI ) has announced that it will pay a dividend of UK£0.027 per share on the 31st of...

Apr 30

Are Dividend Investors Getting More Than They Bargained For With EJF Investments Limited's (LON:EJFI) Dividend?

Today we'll take a closer look at EJF Investments Limited ( LON:EJFI ) from a dividend investor's perspective. Owning a...

Shareholder Returns

	EJFI	GB Capital Markets	GB Market
7D	0%	2.7%	3.1%
1Y	-3.1%	-10.1%	-3.2%

Return vs Industry: EJFI exceeded the UK Capital Markets industry which returned -10.6% over the past year.

Return vs Market: EJFI matched the UK Market which returned -3.8% over the past year.

Price Volatility

Is EJFI's price volatile compared to industry and market?
EJFI volatility
EJFI Average Weekly Movement	0.9%
Capital Markets Industry Average Movement	4.9%
Market Average Movement	6.2%
10% most volatile stocks in GB Market	11.8%
10% least volatile stocks in GB Market	3.2%

Stable Share Price: EJFI is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: EJFI's weekly volatility (1%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2016	n/a	Neal Wilson	https://www.ejfi.com

EJF Investments Limited is a principal investment firm. The firm seeks to invest in financial services sector with a focus in structured debt and equity, loans, bonds, preference shares, convertible notes and private equity. It considers investments domiciled in the United States, the United Kingdom and Europe.

EJF Investments Fundamentals Summary

How do EJF Investments's earnings and revenue compare to its market cap?
EJFI fundamental statistics
Market Cap	UK£75.82m
Earnings (TTM)	UK£10.77m
Revenue (TTM)	UK£13.57m

7.0x

P/E Ratio

5.6x

P/S Ratio

Is EJFI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EJFI income statement (TTM)
Revenue	UK£13.57m
Cost of Revenue	UK£0
Gross Profit	UK£13.57m
Other Expenses	UK£2.79m
Earnings	UK£10.77m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.18
Gross Margin	100.00%
Net Profit Margin	79.41%
Debt/Equity Ratio	24.1%

How did EJFI perform over the long term?

See historical performance and comparison

Dividends

8.6%

Current Dividend Yield

61%

Payout Ratio

Valuation

Is EJF Investments undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EJFI (£1.24) is trading below our estimate of fair value (£3.16)

Significantly Below Fair Value: EJFI is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: EJFI is good value based on its PE Ratio (7x) compared to the UK Capital Markets industry average (9.5x).

PE vs Market: EJFI is good value based on its PE Ratio (7x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EJFI's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: EJFI is good value based on its PB Ratio (0.7x) compared to the GB Capital Markets industry average (1.1x).

Future Growth

How is EJF Investments forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-3.4%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EJFI's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if EJFI's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EJFI's revenue is expected to decline over the next 3 years (-3.4% per year).

High Growth Revenue: EJFI's revenue is forecast to decline over the next 3 years (-3.4% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if EJFI's Return on Equity is forecast to be high in 3 years time

Past Performance

How has EJF Investments performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-41.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EJFI has high quality earnings.

Growing Profit Margin: EJFI became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: EJFI's earnings have declined by 41.1% per year over the past 5 years.

Accelerating Growth: EJFI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EJFI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (62.1%).

Return on Equity

High ROE: EJFI's Return on Equity (10.3%) is considered low.

Financial Health

How is EJF Investments's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EJFI's short term assets (£940.3K) do not cover its short term liabilities (£19.2M).

Long Term Liabilities: EJFI's short term assets (£940.3K) do not cover its long term liabilities (£6.5M).

Debt to Equity History and Analysis

Debt Level: EJFI's net debt to equity ratio (23.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if EJFI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: EJFI's debt is well covered by operating cash flow (28.3%).

Interest Coverage: EJFI's interest payments on its debt are well covered by EBIT (7.7x coverage).

Balance Sheet

Dividend

What is EJF Investments's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

8.63%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EJFI's dividend (8.63%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: EJFI's dividend (8.63%) is in the top 25% of dividend payers in the UK market (4.85%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, EJFI has been paying a dividend for less than 10 years.

Growing Dividend: EJFI's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.7%), EJFI's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (91.7%), EJFI's dividend payments are not well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Diversified Financials industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average board tenure

CEO

Neal Wilson (55 yo)

no data

Tenure

Mr. Neal James Wilson, J.D., serves as the Co-Chief Executive Officer at EJF Capital LLC which he co-founded in 2005. Mr. Wilson served as Chief Operating Officer at EJF Capital. He serves as Vice Chairman...

Board Members

Experienced Board: EJFI's board of directors are considered experienced (5.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31