Ellington Financial

EFC

REIT - Mortgage · Real Estate

Price

$13.53

-0.17 (-1.24%)

Market Cap

$1.45B

Exchange

New York Stock Exchange

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+102.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 49.2M (2021) → 99.4M (2025)

Ellington Financial is a real estate investment trust (REIT) that lends money and invests in mortgages and other loans. Instead of owning physical buildings, it buys mortgage-backed securities, originates home loans, and invests in consumer and commercial debt. Its main business is providing financing to homeowners and borrowers who often don't qualify for standard bank loans.

The company makes money from the interest earned on its loans and investments, plus gains from buying and selling debt securities. It operates primarily in the United States and has a market cap of about $1.3 billion, making it a mid-sized player in the mortgage REIT space. Ellington uses financial expertise and leverage to generate returns, which is also its biggest risk — rising interest rates or a spike in loan defaults can quickly shrink profit margins and put pressure on its dividend, which is a key reason most investors own the stock.

Winston Score History

Politician Trades

3 trades / 12mo

1 Congressional buy and 2 sells on EFC in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+216.5% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+122.9% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

2.5%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$19.9B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Ellington Financial grew revenue 217% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

88.2%

Premium pricing power — 88.2% gross margin

Operating Margin

71.7%

Excellent — 71.7% operating margin

ROCE

0.8%

Weak — 0.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+105.7%

Fast-growing sales (105.7% YoY)

EPS YoY

+17.7%

Earnings growing fast (17.7% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

-305%

Weak — only -305% of profit becomes cash

FCF Margin

-111.4%

Burning cash (-111.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

9.21

Heavy debt load (9.21)

Interest Cover

1.26x

Dangerous — barely covers interest (1.3x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

8.2x

Attractive valuation — P/E 8.2

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

+1.2

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield

11.58%

Healthy income — 11.58% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

+0.0%

Dividend flat

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