Ellington Financial Inc. Common Stock (EFC)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Ellington Financial traded at $11.69. FairStock puts it at 7.31 times earnings and 0.85 times book, with a 12.54% dividend yield and a 47/100 FairStock Score. That is a cigar-butt setup: below book, high yield, but not obviously safe. The company's filed results show net income of $60.9M in FY2023, $117.8M in FY2024, and $118.7M in FY2025, so profit has improved from 2023 but flattened in fiscal 2025. Quarterly numbers are choppy: net income was $29.5M in fiscal Q3 2025, $42.9M in fiscal Q2 2025, $95.5M in fiscal Q1 2026, and $54.4M in fiscal Q2 2026. Diluted EPS was $0.29, $0.45, $0.78, and $0.43 respectively. FairStock calculates ROE of 12.25%, which is respectable, but ROCE of 1.19% and D/E of 9.29 show how leveraged and capital-intensive this mortgage-asset model is. Piotroski F-Score of 1/9 is poor, so accounting signals are weak. The Lynch category is TURNAROUND, based on returning to profit after a loss within three years. Bank-specific measures such as CET1, NIM, and combined ratio are not in the data, so I cannot fully underwrite credit and funding risk. The moat is thin: Ellington is a price-taker in mortgage spreads. If credit is calm, below-book value and double-digit yield may attract value. If mortgage spreads widen or funding costs rise, leverage can erase book value quickly. Cheap, yes; durable, not proven.

In plain English: Ellington Financial buys and manages mortgage-related and other financial assets, mainly mortgage-backed securities and a mortgage origination business. It earns money now, and the stock looks inexpensive compared with its accounting value, but profits have bounced around and it uses a lot of borrowed money. The price looks cheap, but this is not a simple safe business; mortgage credit and funding conditions matter greatly.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer