Ellington Residential Valuation

EARN Stock  USD 7.03  0.03  0.43%   
At this time, the firm appears to be undervalued. Ellington Residential shows a prevailing Real Value of $7.96 per share. The current price of the firm is $7.03. Our model computes the value of Ellington Residential from reviewing the firm fundamentals such as Current Valuation of 725.09 M, shares outstanding of 20.13 M, and Profit Margin of 0.25 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Ellington Residential's valuation include:
Price Book
0.9616
Enterprise Value
725.1 M
Price Sales
3.8494
Forward PE
6.8213
Trailing PE
20.5882
Undervalued
Today
7.03
Please note that Ellington Residential's price fluctuation is not too volatile at this time. Calculation of the real value of Ellington Residential is based on 3 months time horizon. Increasing Ellington Residential's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Ellington Residential is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ellington Stock. However, Ellington Residential's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  7.03 Real  7.96 Target  9.13 Hype  7.0 Naive  6.88
The intrinsic value of Ellington Residential's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Ellington Residential's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
7.96
Real Value
9.07
Upside
Estimating the potential upside or downside of Ellington Residential Mortgage helps investors to forecast how Ellington stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Ellington Residential more accurately as focusing exclusively on Ellington Residential's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.240.280.35
Details
Hype
Prediction
LowEstimatedHigh
5.897.008.11
Details
Potential
Annual Dividend
LowForecastedHigh
0.580.640.70
Details
5 Analysts
Consensus
LowTarget PriceHigh
8.319.1310.13
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Ellington Residential's intrinsic value based on its ongoing forecasts of Ellington Residential's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ellington Residential's closest peers.

Ellington Residential Cash

45.63 Million

Ellington Valuation Trend

Knowing Ellington Residential's actual value is paramount for traders when making sound investment determinations. Using both Ellington Residential's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.

Ellington Residential Total Value Analysis

Ellington Residential Mortgage is currently projected to have valuation of 725.09 M with market capitalization of 140.94 M, debt of 729.54 M, and cash on hands of 83 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Ellington Residential fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
725.09 M
140.94 M
729.54 M
83 M

Ellington Residential Investor Information

About 18.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.96. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ellington Residential last dividend was issued on the 31st of July 2024. Based on the analysis of Ellington Residential's profitability, liquidity, and operating efficiency, Ellington Residential Mortgage may be sliding down financialy. It has an above-average odds of going through some form of financial crisis next quarter.

Ellington Residential Asset Utilization

The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of Ellington suggests not a very effective usage of assets in July.
 
Yuan Drop
 
Covid

Ellington Residential Ownership Allocation

Roughly 80.0 percent of Ellington Residential outstanding shares are held by general public with 1.976999999999999 (percent) owned by insiders and only 17.86 % by other corporate entities.

Ellington Residential Profitability Analysis

The company reported the previous year's revenue of 13.01 M. Net Income was 4.56 M with profit before overhead, payroll, taxes, and interest of 84.58 M.

Ellington Residential Past Distributions to stockholders

About Ellington Residential Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Ellington Residential Mortgage. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ellington Residential based exclusively on its fundamental and basic technical indicators. By analyzing Ellington Residential's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Ellington Residential's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Ellington Residential. We calculate exposure to Ellington Residential's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Ellington Residential's related companies.
Last ReportedProjected for Next Year
Gross Profit11.2 M12.8 M
Pretax Profit Margin 0.35  0.33 
Operating Profit Margin 3.83  4.02 
Net Profit Margin 0.35  0.33 
Gross Profit Margin 0.86  0.93 
Ellington Residential's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Ellington Residential's value is low or high relative to the company's performance and growth projections. Determining the market value of Ellington Residential can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Ellington Residential represents a small ownership stake in the entity. As a stockholder of Ellington, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Ellington Residential Dividends Analysis For Valuation

As of the 13th of July 2024, Dividends Paid is likely to grow to about 17.2 M, while Dividend Yield is likely to drop 0.10. . As of the 13th of July 2024, Earnings Yield is likely to grow to 0.05, though Retained Earnings are likely to grow to (131.7 M).
Last ReportedProjected for Next Year
Dividends Paid14.1 M17.2 M
Dividend Yield 0.15  0.10 
Dividend Payout Ratio 3.10  2.94 
Dividend Paid And Capex Coverage Ratio(0.71)(0.67)
There are various types of dividends Ellington Residential can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Ellington shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Ellington Residential Mortgage directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Ellington pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Ellington Residential by the value of the dividends paid out.

Ellington Residential Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding14.9 M
Quarterly Earnings Growth Y O Y0.185
Forward Price Earnings6.8213

Ellington Residential Current Valuation Indicators

Valuation refers to the process of determining the present value of Ellington Residential Mortgage and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Ellington we look at many different elements of the entity such as Ellington's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Ellington Residential's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Ellington Residential's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Ellington Residential, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Ellington Residential's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Ellington Residential's worth.

Additional Information and Resources on Investing in Ellington Stock

When determining whether Ellington Residential offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ellington Residential's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ellington Residential Mortgage Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ellington Residential Mortgage Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Ellington Residential Mortgage. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.
You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Is Mortgage Real Estate Investment Trusts (REITs) space 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
0.185
Dividend Share
0.96
Earnings Share
0.34
Revenue Per Share
1.532
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.