NYSE:EARN

Stock Analysis Report

Ellington Residential Mortgage REIT

Executive Summary

Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing in, and managing residential mortgage-and real estate-related assets.

Snowflake

Fundamentals

High growth potential unattractive dividend payer.

Risks

  • Ellington Residential Mortgage REIT is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Ellington Residential Mortgage REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

NYSE:EARN

1.1%

US Mortgage REITs

2.9%

US Market


1 Year Return

-12.4%

NYSE:EARN

-9.9%

US Mortgage REITs

0.2%

US Market

EARN underperformed the Mortgage REITs industry which returned -9.8% over the past year.

EARN underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

EARNIndustryMarket
7 Day-0.9%1.1%2.9%
30 Day-8.1%-3.6%-2.3%
90 Day-5.6%-2.8%3.1%
1 Year-1.3%-12.4%0.2%-9.9%2.4%0.2%
3 Year8.9%-23.9%31.9%-4.9%41.7%32.4%
5 Year12.0%-40.6%47.3%-15.5%55.1%37.9%

Price Volatility Vs. Market

How volatile is Ellington Residential Mortgage REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ellington Residential Mortgage REIT undervalued based on future cash flows and its price relative to the stock market?

0.84x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Ellington Residential Mortgage REIT's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ellington Residential Mortgage REIT's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ellington Residential Mortgage REIT is loss making, we can't compare its value to the US Mortgage REITs industry average.

Ellington Residential Mortgage REIT is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Ellington Residential Mortgage REIT, we can't assess if its growth is good value.


Price Based on Value of Assets

Ellington Residential Mortgage REIT is good value based on assets compared to the US Mortgage REITs industry average.


Next Steps

Future Growth

How is Ellington Residential Mortgage REIT expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

38.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ellington Residential Mortgage REIT's revenue is expected to grow significantly at over 20% yearly.

Ellington Residential Mortgage REIT's earnings are expected to grow significantly at over 20% yearly.

Ellington Residential Mortgage REIT's revenue growth is expected to exceed the United States of America market average.

Ellington Residential Mortgage REIT's earnings growth is expected to exceed the United States of America market average.

Ellington Residential Mortgage REIT's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ellington Residential Mortgage REIT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Ellington Residential Mortgage REIT performed over the past 5 years?

-33.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ellington Residential Mortgage REIT does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Ellington Residential Mortgage REIT's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Ellington Residential Mortgage REIT's 1-year growth to the US Mortgage REITs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Ellington Residential Mortgage REIT has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Ellington Residential Mortgage REIT has efficiently used its assets last year compared to the US Mortgage REITs industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Ellington Residential Mortgage REIT improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Ellington Residential Mortgage REIT's financial position?


Financial Position Analysis

Ellington Residential Mortgage REIT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Ellington Residential Mortgage REIT has no long term commitments.


Debt to Equity History and Analysis

Ellington Residential Mortgage REIT's level of debt (943%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (755.5% vs 943% today).

Debt is not well covered by operating cash flow (1.6%, less than 20% of total debt).

Unable to confirm if the interest payments on Ellington Residential Mortgage REIT's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is Ellington Residential Mortgage REIT's current dividend yield, its reliability and sustainability?

11.19%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ellington Residential Mortgage REIT's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Ellington Residential Mortgage REIT's dividend is above the markets top 25% of dividend payers in United States of America (3.85%).

Ellington Residential Mortgage REIT has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Ellington Residential Mortgage REIT only paid a dividend in the past 6 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


Next Steps

Management

What is the CEO of Ellington Residential Mortgage REIT's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Larry Penn (57yo)

6.8yrs

Tenure

0

Mr. Laurence Eric Penn, also known as Larry serves as a Founding Partner, Vice Chairman and the Chief Operating Officer at Ellington Management Group, L.L.C. where he helps oversee many functions of the fi ...


Management Age and Tenure

6.6yrs

Average Tenure

51.5yo

Average Age

The average tenure for the Ellington Residential Mortgage REIT management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.3yrs

Average Tenure

60yo

Average Age

The tenure for the Ellington Residential Mortgage REIT board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$113,03926 Nov 18
The Blackstone Group Inc.
EntityCompany
Shares10,231
Max PriceUS$11.06
BuyUS$667,93921 Nov 18
The Blackstone Group Inc.
EntityCompany
Shares61,285
Max PriceUS$10.92
BuyUS$280,29616 Nov 18
The Blackstone Group Inc.
EntityCompany
Shares25,912
Max PriceUS$10.84

Ownership Breakdown


Management Team

  • Michael Vranos (57yo)

    Co-Chief Investment Officer & Trustee

    • Tenure: 7.6yrs
  • Larry Penn (57yo)

    CEO, President & Trustee

    • Tenure: 6.8yrs
  • Mark Tecotzky (57yo)

    Co-Chief Investment Officer

    • Tenure: 6.8yrs
  • Daniel Margolis (46yo)

    General Counsel

    • Tenure: 6.3yrs
  • Jason Frank

    Corporate Counsel & Secretary

    • Tenure: 0.0yrs
  • JR Herlihy (37yo)

    Chief Operating Officer

    • Tenure: 1.4yrs
    • Compensation: US$128.97k
  • Chris Smernoff (42yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: US$114.22k
  • Vincent Ambrico

    Controller

    • Tenure: 0.0yrs

Board Members

  • Ronald Simon (80yo)

    • Tenure: 6.3yrs
    • Compensation: US$108.49k
  • Thomas Robards (72yo)

    Chairman of the Board

    • Tenure: 6.3yrs
    • Compensation: US$125.99k
  • Michael Vranos (57yo)

    Co-Chief Investment Officer & Trustee

    • Tenure: 7.6yrs
  • Larry Penn (57yo)

    CEO, President & Trustee

    • Tenure: 6.8yrs
  • David Miller (60yo)

    • Tenure: 6.3yrs
    • Compensation: US$108.49k
  • Barry Allardice (71yo)

    • Tenure: 6.3yrs
    • Compensation: US$115.99k
  • Menes Chee (41yo)

    • Tenure: 6.3yrs

Company Information

Ellington Residential Mortgage REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ellington Residential Mortgage REIT
  • Ticker: EARN
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$129.284m
  • Shares outstanding: 12.47m
  • Website: https://www.earnreit.com

Location

  • Ellington Residential Mortgage REIT
  • 53 Forest Avenue
  • Old Greenwich
  • Connecticut
  • 6870
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EARNNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2013

Biography

Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing in, and managing residential mortgage-and real estate-related assets. It acquires and manages reside ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:39
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.