(EFC) Ellington Financial - Overview
Sector: Real Estate | Industry: REIT - Mortgage | Exchange: NYSE (USA) | Market Cap: 1.699m USD | Total Return: 18% in 12m
Avg Turnover: 14.0M
EPS Trend: 58.2%
Qual. Beats: 1
Rev. Trend: 78.2%
Qual. Beats: 2
Warnings
Share dilution 32.9% YoY
Tailwinds
No distinct edge detected
Ellington Financial Inc. (EFC) is a mortgage real estate investment trust (REIT) that acquires and manages a diverse portfolio of financial assets, including residential and commercial mortgage-backed securities, consumer loans, and collateralized loan obligations. The company operates through two primary segments: Investment Portfolio and Longbridge, the latter of which focuses on the origination and management of reverse mortgage loans.
As a mortgage REIT, EFC generates income primarily through the spread between interest earned on its credit assets and the cost of its funding. Unlike equity REITs that own physical properties, mortgage REITs function as specialty finance companies that provide liquidity to the housing market by purchasing mortgage-related debt and derivatives.
The company maintains its tax status by distributing at least 90% of its taxable income to shareholders as dividends. Investors can further evaluate EFC’s historical dividend stability and valuation metrics on ValueRay. Founded in 2007 and headquartered in Connecticut, EFC utilizes both Agency-backed and non-Agency securities to balance credit risk and interest rate sensitivity.
- Interest rate volatility impacts net interest margin and book value stability
- Longbridge reverse mortgage origination volume drives fee income and servicing revenue
- Non-QM and residential mortgage credit performance dictates asset valuation and yields
- Federal Reserve monetary policy shifts influence borrowing costs and leverage spreads
- Credit spread fluctuations affect market pricing of residential and commercial asset-backed securities
| Net Income: 213.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA -0.23 > 1.0 |
| NWC/Revenue: -425.7% < 20% (prev -948.4%; Δ 522.7% < -1%) |
| CFO/TA -0.03 > 3% & CFO -652.0m > Net Income 213.5m |
| Net Debt (17.5b) to EBITDA (403.2m): 43.47 < 3 |
| Current Ratio: 0.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (121.7m) vs 12m ago 32.87% < -2% |
| Gross Margin: 83.37% > 18% (prev 53.49%; Δ 29.87% > 0.5%) |
| Asset Turnover: 3.18% > 50% (prev 1.71%; Δ 1.46% > 0%) |
| Interest Coverage Ratio: 1.26 > 6 (EBIT TTM 403.2m / Interest Expense TTM 320.1m) |
| A: -0.12 (Total Current Assets 163.2m - Total Current Liabilities 2.66b) / Total Assets 20.2b |
| B: -0.02 (Retained Earnings -366.1m / Total Assets 20.2b) |
| C: 0.02 (EBIT TTM 403.2m / Avg Total Assets 18.4b) |
| D: 0.11 (Book Value of Equity 1.92b / Total Liabilities 18.3b) |
| Altman-Z'' = -0.61 = B |
As of June 09, 2026, the stock is trading at USD 13.38 with a total of 1,127,061 shares traded.
Over the past week, the price has changed by -0.37%,
over one month by -0.81%,
over three months by +16.82% and
over the past year by +18.02%.
Ellington Financial has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy EFC.
- StrongBuy: 2
- Buy: 4
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 14.8 | 10.2% |
P/E Trailing = 8.3642
P/E Forward = 9.0744
P/S = 4.2491
P/B = 0.9977
P/EG = 0.86
Revenue TTM = 585.5m USD
EBIT TTM = 403.2m USD
EBITDA TTM = 403.2m USD
Long Term Debt = 15.2b USD (from longTermDebt, last fiscal year)
Short Term Debt = 4.90b USD (from shortTermDebt, last quarter)
Debt = 17.7b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 17.5b USD (calculated: Debt 17.7b - CCE 163.2m)
Enterprise Value = 19.2b USD (1.70b + Debt 17.7b - CCE 163.2m)
Interest Coverage Ratio = 1.26 (Ebit TTM 403.2m / Interest Expense TTM 320.1m)
EV/FCF = -29.48x (Enterprise Value 19.2b / FCF TTM -652.1m)
FCF Yield = -3.39% (FCF TTM -652.1m / Enterprise Value 19.2b)
FCF Margin = -111.4% (FCF TTM -652.1m / Revenue TTM 585.5m)
Net Margin = 36.47% (Net Income TTM 213.5m / Revenue TTM 585.5m)
Gross Margin = 83.37% ((Revenue TTM 585.5m - Cost of Revenue TTM 97.4m) / Revenue TTM)
Gross Margin QoQ = 88.23% (prev 82.95%)
Tobins Q-Ratio = 0.95 (Enterprise Value 19.2b / Total Assets 20.2b)
Interest Expense / Debt = 1.81% (Interest Expense 320.1m / Debt 17.7b)
Taxrate = 2.17% (4.85m / 223.8m)
NOPAT = 394.4m (EBIT 403.2m * (1 - 2.17%))
Current Ratio = 0.06 (Total Current Assets 163.2m / Total Current Liabilities 2.66b)
Debt / Equity = 9.21 (Debt 17.7b / totalStockholderEquity, last quarter 1.92b)
Debt / EBITDA = 43.47 (Net Debt 17.5b / EBITDA 403.2m)
Debt / FCF = -26.87 (negative FCF - burning cash) (Net Debt 17.5b / FCF TTM -652.1m)
Total Stockholder Equity = 1.80b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.16% (Net Income 213.5m / Total Assets 20.2b)
RoE = 11.88% (Net Income TTM 213.5m / Total Stockholder Equity 1.80b)
RoCE = 2.38% (EBIT 403.2m / Capital Employed (Equity 1.80b + L.T.Debt 15.2b))
RoIC = 1.76% (NOPAT 394.4m / Invested Capital 22.4b)
WACC = 2.30% (E(1.70b)/V(19.4b) * Re(7.83%) + D(17.7b)/V(19.4b) * Rd(1.81%) * (1-Tc(0.02)))
Discount Rate = 7.83% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.56 | Cagr: 26.17%
[DCF] Fair Price = unknown (Cash Flow -652.1m)
EPS Correlation: 58.17 | EPS CAGR: 11.27% | SUE: 1.04 | # QB: 1
Revenue Correlation: 78.20 | Revenue CAGR: 24.13% | SUE: 0.87 | # QB: 2
EPS current Quarter (2026-06-30): EPS=0.46 | Chg30d=+1.93% | Revisions=+25% | Analysts=7
EPS next Quarter (2026-09-30): EPS=0.47 | Chg30d=+1.16% | Revisions=+0% | Analysts=7
EPS current Year (2026-12-31): EPS=1.94 | Chg30d=+4.26% | Revisions=+60% | GrowthEPS=+4.2% | GrowthRev=+31.4%
EPS next Year (2027-12-31): EPS=1.95 | Chg30d=+2.34% | Revisions=+56% | GrowthEPS=+0.5% | GrowthRev=+7.7%
[Analyst] Revisions Ratio: +60%