Ellington Credit Co (EARN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Ellington Credit Co Do?
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 residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS comprising non-agency CMOs, such as investment grade and non-investment grade. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. Ellington Residential Mortgage REIT was incorporated in 2012 and is based in Old Greenwich, Connecticut. Ellington Credit Co (EARN) is classified as a micro-cap stock in the Financials sector, specifically within the Trading industry. The company is led by CEO Laurence E. Penn and employs approximately 170 people, headquartered in Old Greenwich, Connecticut. With a market capitalization of $171M, EARN is one of the notable companies in the Financials sector.
Ellington Credit Co (EARN) Stock Rating — Reduce (April 2026)
As of April 2026, Ellington Credit Co receives a Reduce rating with a composite score of 42.5/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.EARN ranks #2,789 out of 4,446 stocks in our coverage universe. Within the Financials sector, Ellington Credit Co ranks #697 of 891 stocks, placing it in the lower half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
EARN Stock Price and 52-Week Range
Ellington Credit Co (EARN) currently trades at $4.61. The stock lost $0.04 (0.9%) in the most recent trading session. The 52-week high for EARN is $6.08, which means the stock is currently trading -24.2% from its annual peak. The 52-week low is $4.31, putting the stock 7.0% above its annual trough. Recent trading volume was 231K shares, suggesting relatively thin trading activity.
Is EARN Overvalued or Undervalued? — Valuation Analysis
Ellington Credit Co (EARN) carries a value factor score of 50/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 234.48x, compared to the Financials sector average of 14.88x — a premium of 1476%. The price-to-book ratio stands at 0.74x, versus the sector average of 1.22x. The price-to-sales ratio is 9.30x, compared to 0.90x for the average Financials stock. On an enterprise value basis, EARN trades at 18.63x EV/EBITDA, versus 3.26x for the sector.
Overall, EARN's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Ellington Credit Co Profitability — ROE, Margins, and Quality Score
Ellington Credit Co (EARN) earns a quality factor score of 36/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 0.3%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.1% versus the sector average of 1.2%.
The operating margin is -81.0% (sector: 21.8%). Net profit margin stands at 357.1%, versus 17.7% for the average Financials stock. Revenue growth is running at 185.8% on a trailing basis, compared to 9.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
EARN Debt, Balance Sheet, and Financial Health
Ellington Credit Co has a debt-to-equity ratio of 243.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.41x, suggesting adequate working capital coverage.
EARN has a beta of 0.63, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Ellington Credit Co is 76/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Ellington Credit Co Revenue and Earnings History — Quarterly Trend
In TTM 2026, Ellington Credit Co reported revenue of $18M and earnings per share (EPS) of $-0.23. Net income for the quarter was $721,000. Operating income came in at $9M.
In Q4 2025, Ellington Credit Co reported revenue of $9M and earnings per share (EPS) of $-0.23. Net income for the quarter was $-8M. Operating income came in at $7M.
In FY 2025, Ellington Credit Co reported revenue of $9M and earnings per share (EPS) of $-0.23. Net income for the quarter was $-8M. Revenue grew -38.6% year-over-year compared to FY 2024. Operating income came in at $7M.
In FY 2024, Ellington Credit Co reported revenue of $15M and earnings per share (EPS) of $0.28. Net income for the quarter was $7M. Revenue grew 656.7% year-over-year compared to FY 2023. Operating income came in at $6M.
Over the past 8 quarters, Ellington Credit Co has demonstrated a growth trajectory, with revenue expanding from $-3M to $18M. Investors analyzing EARN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
EARN Dividend Yield and Income Analysis
Ellington Credit Co (EARN) currently pays a dividend yield of 13.9%. At this yield, a $10,000 investment in EARN stock would generate approximately $$1392.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning EARN offers above-average income for its sector. With a net margin of 357.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
EARN Momentum and Technical Analysis Profile
Ellington Credit Co (EARN) has a momentum factor score of 30/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 66/100 reflects moderate short selling activity.
EARN vs Competitors — Financials Sector Ranking and Peer Comparison
Within the Financials sector, Ellington Credit Co (EARN) ranks #697 out of 891 stocks based on the Blank Capital composite score. This places EARN in the lower half of all Financials stocks in our coverage universe. Key competitors and sector peers include WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) with a score of 62.9/100, OPPENHEIMER HOLDINGS INC (OPY) with a score of 62.6/100, Enact Holdings, Inc. (ACT) with a score of 61.6/100, International General Insurance Holdings Ltd. (IGIC) with a score of 61.3/100, and PARKE BANCORP, INC. (PKBK) with a score of 60.4/100.
Comparing EARN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full EARN vs S&P 500 (SPY) comparison to assess how Ellington Credit Co stacks up against the broader market across all factor dimensions.
EARN Next Earnings Date
No upcoming earnings date has been announced for Ellington Credit Co (EARN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy EARN? — Investment Thesis Summary
The quantitative profile for Ellington Credit Co suggests caution. The quality score of 36/100 flags below-average profitability. Momentum is weak at 30/100, a headwind for near-term performance. Low volatility (stability score 76/100) reduces downside risk.
In summary, Ellington Credit Co (EARN) earns a Reduce rating with a composite score of 42.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on EARN stock.
Related Resources for EARN Investors
Explore more research and tools: EARN vs S&P 500 comparison, top Financials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare EARN head-to-head with peers: EARN vs WTM, EARN vs OPY, EARN vs ACT.