Ellington Residential Mortgage Stock Current Ratio
| EARN Stock | USD 5.66 0.19 3.25% |
By evaluating key metrics such as revenue growth, profitability, cash flow trends, and balance sheet strength, investors can better assess Ellington Residential's long-term financial health and intrinsic value.
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Ellington Residential Mortgage Company Current Ratio Analysis
Ellington Residential's Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Current Ellington Residential Current Ratio | 0.17 X |
Most of Ellington Residential's fundamental indicators, such as Current Ratio, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Ellington Residential Mortgage is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
| Competition |
In accordance with the recently published financial statements, Ellington Residential Mortgage has a Current Ratio of 0.17 times. This is 94.67% lower than that of the Mortgage Real Estate Investment Trusts (REITs) sector and significantly higher than that of the Financials industry. The current ratio for all United States stocks is 92.13% higher than that of the company.
Ellington Current Ratio Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Ellington Residential's direct or indirect competition against its Current Ratio to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Ellington Residential could also be used in its relative valuation, which is a method of valuing Ellington Residential by comparing valuation metrics of similar companies.Ellington Residential is currently under evaluation in current ratio category among its peers.
Ellington Fundamentals
| Return On Equity | -0.0282 | ||||
| Return On Asset | -0.006 | ||||
| Profit Margin | (0.15) % | ||||
| Operating Margin | 0.76 % | ||||
| Current Valuation | 713.23 M | ||||
| Shares Outstanding | 37.56 M | ||||
| Shares Owned By Insiders | 1.35 % | ||||
| Shares Owned By Institutions | 22.72 % | ||||
| Number Of Shares Shorted | 228.58 K | ||||
| Price To Earning | 2.40 X | ||||
| Price To Book | 0.93 X | ||||
| Price To Sales | 5.92 X | ||||
| Revenue | 15.07 M | ||||
| Gross Profit | 35.89 M | ||||
| EBITDA | 49.81 M | ||||
| Net Income | 6.59 M | ||||
| Cash And Equivalents | 83 M | ||||
| Cash Per Share | 6.35 X | ||||
| Total Debt | 630.37 M | ||||
| Debt To Equity | 8.04 % | ||||
| Current Ratio | 0.17 X | ||||
| Book Value Per Share | 6.08 X | ||||
| Cash Flow From Operations | 9.11 M | ||||
| Short Ratio | 0.97 X | ||||
| Earnings Per Share | 0.28 X | ||||
| Price To Earnings To Growth | (1.79) X | ||||
| Target Price | 6.13 | ||||
| Number Of Employees | 17 | ||||
| Beta | 1.31 | ||||
| Market Capitalization | 212.59 M | ||||
| Total Asset | 824.09 M | ||||
| Retained Earnings | (155.16 M) | ||||
| Working Capital | (1.19 B) | ||||
| Current Asset | 131.7 M | ||||
| Current Liabilities | 1.32 B | ||||
| Annual Yield | 0.17 % | ||||
| Five Year Return | 12.31 % | ||||
| Net Asset | 824.09 M | ||||
| Last Dividend Paid | 0.96 |
About Ellington Residential Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Ellington Residential Mortgage's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ellington Residential using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ellington Residential Mortgage based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Ellington Residential
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ellington Residential position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ellington Residential will appreciate offsetting losses from the drop in the long position's value.Moving together with Ellington Stock
Moving against Ellington Stock
The ability to find closely correlated positions to Ellington Residential could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ellington Residential when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ellington Residential - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ellington Residential Mortgage to buy it.
The correlation of Ellington Residential is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ellington Residential moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ellington Residential moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ellington Residential can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Ellington Residential Piotroski F Score and Ellington Residential Altman Z Score analysis. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Is Mortgage Real Estate Investment Trusts (REITs) space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ellington Residential. If investors know Ellington will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ellington Residential listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Ellington Residential is measured differently than its book value, which is the value of Ellington that is recorded on the company's balance sheet. Investors also form their own opinion of Ellington Residential's value that differs from its market value or its book value, called intrinsic value, which is Ellington Residential's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ellington Residential's market value can be influenced by many factors that don't directly affect Ellington Residential's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ellington Residential's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ellington Residential is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ellington Residential's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.