NYSE:EFC

Stock Analysis Report

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Executive Summary

Ellington Financial Inc., through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. More Details


Snowflake Analysis

High growth potential second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EFC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.4%

EFC

-4.0%

US Mortgage REITs

-0.8%

US Market


1 Year Return

-30.1%

EFC

-37.5%

US Mortgage REITs

13.8%

US Market

Return vs Industry: EFC exceeded the US Mortgage REITs industry which returned -37.5% over the past year.

Return vs Market: EFC underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

EFCIndustryMarket
7 Day-4.4%-4.0%-0.8%
30 Day-0.9%-3.1%-5.0%
90 Day7.0%5.4%10.1%
1 Year-22.8%-30.1%-31.3%-37.5%16.4%13.8%
3 Year8.9%-20.1%-23.0%-43.8%36.9%27.8%
5 Year21.4%-28.8%14.3%-33.3%85.0%64.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ellington Financial undervalued compared to its fair value and its price relative to the market?

0.8x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: EFC ($12.61) is trading above our estimate of fair value ($7.67)

Significantly Below Fair Value: EFC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EFC is unprofitable, so we can't compare its PE Ratio to the US Mortgage REITs industry average.

PE vs Market: EFC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EFC's PB Ratio (0.8x) is in line with the US Mortgage REITs industry average.


Next Steps

Future Growth

How is Ellington Financial forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

120.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: EFC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EFC's is expected to become profitable in the next 3 years.

Revenue vs Market: EFC's revenue (46.8% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: EFC's revenue (46.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EFC's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Ellington Financial performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EFC is currently unprofitable.

Growing Profit Margin: EFC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EFC is unprofitable, and losses have increased over the past 5 years at a rate of 10.9% per year.

Accelerating Growth: Unable to compare EFC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EFC is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (-36.7%).


Return on Equity

High ROE: EFC has a negative Return on Equity (-6.55%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ellington Financial's financial position?


Financial Position Analysis

Short Term Liabilities: EFC's short term assets ($1.7B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: EFC's short term assets ($1.7B) exceed its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: EFC's debt to equity ratio (276.2%) is considered high.

Reducing Debt: EFC's debt to equity ratio has increased from 181.2% to 276.2% over the past 5 years.

Debt Coverage: EFC's debt is not well covered by operating cash flow (4.4%).

Interest Coverage: Insufficient data to determine if EFC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Ellington Financial current dividend yield, its reliability and sustainability?

8.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EFC's dividend (8.56%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: EFC's dividend (8.56%) is in the top 25% of dividend payers in the US market (4.94%)


Stability and Growth of Payments

Stable Dividend: EFC's dividend payments have been volatile in the past 10 years.

Growing Dividend: EFC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: EFC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: EFC's dividends in 3 years are forecast to be covered by earnings (77.7% payout ratio).


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Larry Penn (58 yo)

13.08yrs

Tenure

Mr. Laurence Eric Penn, also known as Larry, serves as the Executive Vice President at Ellington Financial Management LLC and also serves as the Vice Chairman at Ellington Global Asset Management, LLC. Mr. ...


Leadership Team

NamePositionTenureCompensationOwnership
JR Herlihy
Chief Financial Officer2.5yrsUS$653.82kno data
Christopher Smernoff
Chief Accounting Officer2.5yrsUS$476.11kno data
Laurence Penn
CEO, President & Director13.08yrsno data0.24%
$ 1.3m
Mark Tecotzky
Co-Chief Investment Officer12.5yrsno datano data
Michael Vranos
Co-Chief Investment Officer11.25yrsno data4.4%
$ 24.6m
Daniel Margolis
General Counsel7.08yrsno datano data
Jason Frank
Deputy General Counsel & Secretary6.75yrsno datano data
Vincent Ambrico
Controller2.42yrsno datano data

6.9yrs

Average Tenure

52.5yo

Average Age

Experienced Management: EFC's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Laurence Penn
CEO, President & Director13.08yrsno data0.24%
$ 1.3m
Ronald Simon
Independent Director13.08yrsUS$143.04k0.076%
$ 425.1k
Thomas Robards
Independent Chairman of the Board10.92yrsUS$175.54k0.0029%
$ 16.0k
Lisa Mumford
Director2.08yrsUS$145.37kno data
Edward Resendez
Independent Director13.08yrsUS$143.04k0.0057%
$ 32.0k

13.1yrs

Average Tenure

64yo

Average Age

Experienced Board: EFC's board of directors are seasoned and experienced ( 13.1 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 been diluted in the past year, with total shares outstanding growing by 28.6%.


Top Shareholders

Company Information

Ellington Financial Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ellington Financial Inc.
  • Ticker: EFC
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Implied Market Cap: US$559.720m
  • Market Cap: US$552.041m
  • Shares outstanding: 44.39m
  • Website: https://www.ellingtonfinancial.com

Location

  • Ellington Financial Inc.
  • 53 Forest Avenue
  • Old Greenwich
  • Connecticut
  • 6870
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EFCNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2010
1ELDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2010
0A26LSE (London Stock Exchange)YesCommon StockGBUSDOct 2010
EFC.PRANYSE (New York Stock Exchange)6.75% SER A PFDUSUSDOct 2019

Biography

Ellington Financial Inc., through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 06:17
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.