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Upturn AI SWOT - About
Ellington Residential Mortgage (EARN)
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Upturn Advisory Summary
03/05/2025: EARN (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 0.94% | Avg. Invested days 56 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/05/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 172.87M USD | Price to earnings Ratio 20.82 | 1Y Target Price 7.25 |
Price to earnings Ratio 20.82 | 1Y Target Price 7.25 | ||
Volume (30-day avg) 732317 | Beta 2 | 52 Weeks Range 5.67 - 6.74 | Updated Date 03/30/2025 |
52 Weeks Range 5.67 - 6.74 | Updated Date 03/30/2025 | ||
Dividends yield (FY) 16.47% | Basic EPS (TTM) 0.28 |
Earnings Date
Report Date 2025-03-04 | When After Market | Estimate 0.2993 | Actual 0.27 |
Profitability
Profit Margin 43.71% | Operating Margin (TTM) 63.06% |
Management Effectiveness
Return on Assets (TTM) 0.74% | Return on Equity (TTM) 3.99% |
Valuation
Trailing PE 20.82 | Forward PE 5.19 | Enterprise Value 644816576 | Price to Sales(TTM) 11.47 |
Enterprise Value 644816576 | Price to Sales(TTM) 11.47 | ||
Enterprise Value to Revenue 9.44 | Enterprise Value to EBITDA - | Shares Outstanding 29651600 | Shares Floating 29167343 |
Shares Outstanding 29651600 | Shares Floating 29167343 | ||
Percent Insiders 1.65 | Percent Institutions 23.85 |
Analyst Ratings
Rating 3.25 | Target Price 7.25 | Buy 1 | Strong Buy - |
Buy 1 | Strong Buy - | ||
Hold 3 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Ellington Residential Mortgage
Company Overview
History and Background
Ellington Residential Mortgage REIT is a specialty finance company that acquires and manages residential mortgage-backed securities (RMBS). Founded in 2013, it focuses on agency and non-agency RMBS, including those backed by subprime, Alt-A, and jumbo mortgages.
Core Business Areas
- Agency RMBS: Investment in RMBS guaranteed by government-sponsored enterprises like Fannie Mae and Freddie Mac.
- Non-Agency RMBS: Investment in RMBS not guaranteed by government agencies, offering potentially higher yields but also higher risk.
- Other Mortgage-Related Assets: Investment in other mortgage related assets such as credit risk transfers.
Leadership and Structure
Laurence Penn is the CEO. The company operates as a real estate investment trust (REIT), managed externally by Ellington Management Group, LLC.
Top Products and Market Share
Key Offerings
- Agency RMBS Investments: Investments in agency-backed RMBS provide a relatively stable stream of income due to the government guarantee. Market share data for specific RMBS holdings is generally not publicly available. Competitors include other REITs and institutional investors participating in the RMBS market.
- Non-Agency RMBS Investments: Non-agency RMBS investments offer higher potential returns, but also carry more risk. Market share data is dispersed as the market is quite large. Competitors in this space include other specialized REITs, hedge funds, and private equity firms.
Market Dynamics
Industry Overview
The RMBS market is influenced by interest rates, housing market trends, and government policies. It is a large and complex market with a wide range of participants.
Positioning
Ellington Residential Mortgage specializes in a niche segment of the RMBS market, focusing on opportunistic investments and active management to generate returns. Their expertise in credit analysis and risk management is a competitive advantage.
Total Addressable Market (TAM)
The total RMBS market is trillions of dollars. Ellington Residential Mortgage focuses on specific segments, making their addressable market a smaller subset, potentially in the billions. They position themselves as specialists within this segment.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Specialized expertise in RMBS
- Active portfolio management strategy
- Access to capital markets
Weaknesses
- External management structure
- Sensitivity to interest rate changes
- Concentration in RMBS market
- Reliance on short term borrowing to fund positions
Opportunities
- Expanding into new mortgage-related asset classes
- Capitalizing on market dislocations
- Growing assets under management
- Increased market volatility creating profit opportunities
Threats
- Rising interest rates
- Economic downturn
- Increased competition
- Changes in government regulations
Competitors and Market Share
Key Competitors
- AGNC
- IVR
- TWO
Competitive Landscape
Ellington Residential Mortgage differentiates itself through its active management approach and specialized expertise in RMBS. Competitors may have different investment strategies, risk profiles, or cost structures.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Growth has been driven by increasing assets under management and strategic deployment of capital in RMBS investments.
Future Projections: Future growth depends on market conditions and the company's ability to generate attractive returns on its investments.
Recent Initiatives: Recent initiatives may include adjusting portfolio composition to respond to changing market conditions and seeking new investment opportunities.
Summary
Ellington Residential Mortgage is a specialized REIT focusing on residential mortgage-backed securities. Its performance is highly sensitive to interest rate changes and market volatility. The company aims to generate attractive returns through active portfolio management. Investors should be aware of the risks associated with RMBS investments and the external management structure. Continued success depends on navigating the complex RMBS market effectively and adapting to changing economic conditions.
Similar Companies
- AGNC
- IVR
- TWO
- NRZ
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Financial News Outlets
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research and risk tolerance.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Ellington Residential Mortgage
Exchange NYSE | Headquaters Old Greenwich, CT, United States | ||
IPO Launch date 2013-05-01 | CEO, President & Trustee Mr. Laurence Eric Penn | ||
Sector Financial Services | Industry Asset Management | Full time employees - | Website https://www.ellingtoncredit.com |
Full time employees - | Website https://www.ellingtoncredit.com | ||
Ellington Credit Company, a real estate investment trust, acquires, invests in, and manages 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, such as 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. The company was formerly known as Ellington Residential Mortgage REIT and changed its name to Ellington Credit Company in April 2024. Ellington Credit Company was incorporated in 2012 and is based in Old Greenwich, Connecticut.
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