Ellington Residential Mortgage (EARN) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Ellington Residential Mortgage stock (EARN) is currently trading at $4.40. Ellington Residential Mortgage PE ratio is 15.50. Ellington Residential Mortgage PS ratio (Price-to-Sales) is 4.54. Analyst consensus price target for EARN is $5.50. WallStSmart rates EARN as Sell.
- EARN PE ratio analysis and historical PE chart
- EARN PS ratio (Price-to-Sales) history and trend
- EARN intrinsic value — DCF, Graham Number, EPV models
- EARN stock price prediction 2025 2026 2027 2028 2029 2030
- EARN fair value vs current price
- EARN insider transactions and insider buying
- Is EARN undervalued or overvalued?
- Ellington Residential Mortgage financial analysis — revenue, earnings, cash flow
- EARN Piotroski F-Score and Altman Z-Score
- EARN analyst price target and Smart Rating
Ellington Residential Mortgage
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EARN Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Ellington Residential Mortgage (EARN)
EARN trades at a significant discount to its Graham intrinsic value of $10.19, offering a 48% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Ellington Residential Mortgage (EARN) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in operating margin, price/book. Concerns around market cap and peg ratio. Mixed signals suggest waiting for clearer direction before acting.
Ellington Residential Mortgage (EARN) Key Strengths (2)
Keeps $68 of every $100 in revenue after operating costs
Trading below book value, meaning the market prices it less than net assets
Supporting Valuation Data
Ellington Residential Mortgage (EARN) Areas to Watch (8)
PEG ratio is negative or unavailable
Company is destroying shareholder value
Revenue declining -61.00%, a shrinking business
Company is losing money with a negative profit margin
Very low institutional interest at 10.28%
Micro-cap company with very limited liquidity and high volatility
Premium valuation at 4.5x annual revenue
Solid earnings growth at 18.50%
Supporting Valuation Data
Ellington Residential Mortgage (EARN) Detailed Analysis Report
Overall Assessment
This company scores 37/100 in our Smart Analysis, earning a F grade. Out of 10 metrics analyzed, 2 register as strengths (avg 10.0/10) while 8 fall into concern territory (avg 1.9/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Price/Book. Valuation metrics including Price/Book (0.72) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 68.40%.
The Bear Case
The primary concerns are PEG Ratio, Return on Equity, Revenue Growth. Some valuation metrics including PEG Ratio (N/A), Price/Sales (4.54) suggest expensive pricing. Growth concerns include Revenue Growth at -61.00%, EPS Growth at 18.50%, which may limit upside. Profitability pressure is visible in Return on Equity at -2.82%, Profit Margin at -14.60%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether PEG Ratio improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -2.82% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -61.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. PEG Ratio and Return on Equity are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
EARN Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
EARN's Price-to-Sales ratio of 4.54x trades at a deep discount to its historical average of 65.04x (9th percentile). The current valuation is 99% below its historical high of 762.38x set in May 2013, and 21% above its historical low of 3.74x in Feb 2026.
WallStSmart Analysis Synopsis
Data-driven financial summary for Ellington Residential Mortgage (EARN) · FINANCIAL SERVICES › ASSET MANAGEMENT
The Big Picture
Ellington Residential Mortgage is in a turnaround phase, with management focused on restoring profitability. Revenue reached 36M with 61% decline year-over-year. The company is currently unprofitable, posting a -14.6% profit margin.
Key Findings
Revenue contracted 61% YoY. Worth determining whether this is cyclical or structural.
The company is unprofitable with a -14.6% profit margin. The path to breakeven will be the key catalyst.
What to Watch Next
Dividend sustainability with a current yield of 21.7%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor ASSET MANAGEMENT industry trends, competitive moves, and regulatory changes that could impact Ellington Residential Mortgage.
Bottom Line
Ellington Residential Mortgage is in turnaround mode. The path to profitability remains the critical question. Speculative investors may see opportunity in the recovery story, but conservative investors should wait for consistent positive earnings before committing capital.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Ellington Residential Mortgage(EARN)
NYSE
FINANCIAL SERVICES
ASSET MANAGEMENT
USA
Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing, and managing residential and real estate-related mortgage assets. The company is headquartered in Old Greenwich, Connecticut.