Ellington Financial Inc. (EFC) AI Stock Analysis

Ellington Financial Inc., operating through its subsidiary Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets across the United States. Its portfolio includes residential mortgage-backed securities (RMBS) backed by prime jumbo, Alt-A, manufactured housing, and subprime loans, as well as agency-guaranteed RMBS. The company also invests in residential mortgage loans, commercial mortgage-backed securities, commercial real estate debt, collateralized loan obligations, corporate loans, and derivatives. In addition, Ellington Financial extends its investments into consumer loans and asset-backed securities.

Between FY2020 and FY2025, revenue grew at an annualized rate of 84.8%, climbing from $122.0M in FY2021 to $674.5M in FY2025. Annual net income improved from -$70.0M in FY2022 to $146.9M in FY2025, generating EPS of $1.86. Operating margin reached 61.6% in FY2025, compared to -57.9% in FY2022. For the trailing twelve months ended June 30, 2026, revenue stood at $431.4M with an operating margin of 55.9% and EPS of $1.61. In the latest quarter ended June 30, 2026, quarterly revenue grew 33.8% year-over-year, while quarterly earnings declined 3.3%.

As of June 30, 2026, Ellington Financial held $247.5M in cash and short-term investments against total debt of $18.49B, resulting in net debt of $18.24B. Shareholders' equity was $1.97B, bringing the debt-to-equity ratio to 9.40 and the current ratio to 0.08. Total assets were $21.03B. In FY2025, operating cash flow and free cash flow were both $509.0M, compared to free cash flow of -$430.5M in FY2024. Capital activities in FY2025 included $302.2M raised from share issuance and $183.6M paid out in dividends.

Ellington Financial trades at a trailing P/E of 7.2x and a forward P/E of 9.1x, below the median of its US-listed Real Estate peers at 21.6x and 23.5x, respectively. The company carries a price-to-book multiple of 0.9x and a price-to-sales ratio of 3.5x versus the peer median of 3.7x. Its enterprise value to revenue multiple stands at 52.0x. Over the past 1 year, the stock returned -3.8%, underperforming the SPY return of 16.8%, while its 5-year return of 19.5% trailed the SPY return of 83.0%.

Ellington Financial pays a monthly dividend with an annualized forward payout of $1.56, representing a dividend yield of 13.39%. The payout ratio stands at 21.9%, and the company has paid dividends for 17 consecutive years. The 5-year annualized dividend growth rate is 4.4%, with the last ex-dividend date on October 30, 2026.

Wall Street analyst coverage consists of 2 Strong Buy, 4 Buy, and 2 Hold ratings. The mean price target is $14.64, which is 25.7% above the last close of $11.65. For the fiscal year ending December 31, 2026, analysts estimate revenue of $681.1M and EPS of $2.09. Ellington Financial has beaten EPS estimates in each of the last 4 quarters, and the next earnings date is November 4, 2026.

This page is an AI-written research summary of Ellington Financial Inc. (EFC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: EFC income statement, EFC balance sheet, EFC key metrics, EFC analyst forecast, EFC chart. See the EFC stock overview for the latest quote and news.