Ellington Credit Company 8.50% Notes due 2031 (ELLA)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

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

As a value investor, I begin with the business and the margin of safety. Ellington Credit Company is a closed-end investment company that owns pools of loans and related securities, including mezzanine debt and equity tranches. That is a complex, credit-sensitive business with no obvious moat; results depend on management skill and credit markets. The filed numbers are uneven: in fiscal year 2024, the year ended 2024-12-31, net income was $6.6 million and diluted EPS was $0.28; in fiscal year 2023, the year ended 2023-12-31, net income was $4.6 million and diluted EPS was $0.31; in fiscal year 2022, the year ended 2022-12-31, the company lost $30.2 million, or $2.29 per diluted share. More recently, fiscal Q1 2025, the quarter ended 2025-03-31, produced a net loss of $7.9 million and diluted EPS of -$0.23. FairStock's calculations show ROE of -20.32%, ROCE of -6.64%, debt-to-equity of 1.29, and a P/B of 5.97 at the 2026-10-13 close of $24.95. Its FairStock Score is 28/100, and the computed Lynch category is TURNAROUND because it returned to profit after a loss within the last three years. For the 8.50% notes due 2031, the price is near the bottom of the 52-week range of $24.47-$26.63. Growth is not demonstrated: revenue growth and profit growth are not available, and earnings are lumpy. The coupon is attractive only if the credit remains sound; the weak returns and leverage argue for caution. I see no clear bargain.

In plain English: Ellington Credit Company invests in pools of loans and related securities to earn income. Its recent profits have been small and uneven, with losses in fiscal year 2022 and fiscal Q1 2025, so the business looks fragile. The 8.50% notes due 2031 trade at $24.95, near the low end of their 52-week range, so the price looks fair at best rather than clearly cheap given the weak financial results.

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 Q1 2025 10-K (period ended 2025-03-31) · fiscal Q3 2024 10-Q (period ended 2024-09-30) · fiscal Q2 2024 10-Q (period ended 2024-06-30) · fiscal Q1 2024 10-K (period ended 2024-03-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31) · FY2022 10-K (period ended 2022-12-31)

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