Ellington Residential Return On Equity vs. Operating Margin
| EARN Stock | USD 6.81 0.04 0.59% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.0334635 | Current Value 0.0351 | Quarterly Volatility 0.09804616 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.93 | 0.8613 |
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For Ellington Residential profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ellington Residential to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ellington Residential Mortgage utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ellington Residential's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ellington Residential Mortgage over time as well as its relative position and ranking within its peers.
Ellington |
Is Ellington Residential's industry 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.
Quarterly Earnings Growth (0.15) | Dividend Share 0.96 | Earnings Share 0.31 | Revenue Per Share (0) | Quarterly Revenue Growth (0.83) |
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.
Ellington Residential Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ellington Residential's current stock value. Our valuation model uses many indicators to compare Ellington Residential value to that of its competitors to determine the firm's financial worth. Ellington Residential Mortgage is rated # 5 in return on equity category among related companies. It is rated # 2 in operating margin category among related companies reporting about 28.60 of Operating Margin per Return On Equity. At this time, Ellington Residential's Return On Equity is very stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Ellington Residential by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ellington Residential's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ellington Residential's earnings, one of the primary drivers of an investment's value.Ellington Operating Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Ellington Residential |
| = | 0.0367 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Ellington Residential |
| = | 1.05 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Ellington Operating Margin Comparison
Ellington Residential is currently under evaluation in operating margin category among related companies.
Ellington Residential Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ellington Residential, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ellington Residential will eventually generate negative long term returns. The profitability progress is the general direction of Ellington Residential's change in net profit over the period of time. It can combine multiple indicators of Ellington Residential, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 0.00 | 0.00 | |
| Operating Income | 49.8 M | 52.3 M | |
| Net Income From Continuing Ops | 3.8 M | 3.2 M | |
| Income Before Tax | 4.6 M | 2.6 M | |
| Total Other Income Expense Net | -45.3 M | -43 M | |
| Net Loss | -27.2 M | -25.8 M | |
| Net Income | 4.6 M | 2.6 M | |
| Income Tax Expense | -5.6 M | -5.3 M | |
| Interest Income | 40.6 M | 30.4 M | |
| Non Operating Income Net Other | -18.5 M | -17.6 M | |
| Net Interest Income | -634 K | -602.3 K | |
| Change To Netincome | 108.7 M | 114.2 M | |
| Net Income Per Share | 0.31 | 0.37 | |
| Income Quality | (2.20) | (2.09) | |
| Net Income Per E B T | 0.00 | 0.00 |
Ellington Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ellington Residential. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ellington Residential position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ellington Residential's important profitability drivers and their relationship over time.
Use Ellington Residential in pair-trading
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.Ellington Residential Pair Trading
Ellington Residential Mortgage Pair Trading Analysis
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.Use Investing Themes to Complement your Ellington Residential position
In addition to having Ellington Residential in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Investing Opportunities. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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When running Ellington Residential's price analysis, check to measure Ellington Residential's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ellington Residential is operating at the current time. Most of Ellington Residential's value examination focuses on studying past and present price action to predict the probability of Ellington Residential's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ellington Residential's price. Additionally, you may evaluate how the addition of Ellington Residential to your portfolios can decrease your overall portfolio volatility.
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To fully project Ellington Residential's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ellington Residential at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ellington Residential's income statement, its balance sheet, and the statement of cash flows.