ELLINGTON FINL Price To Earning vs. Cash Flow From Operations
| 1EL Stock | EUR 11.60 0.10 0.85% |
For ELLINGTON FINL profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ELLINGTON FINL to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ELLINGTON FINL INC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ELLINGTON FINL's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ELLINGTON FINL INC over time as well as its relative position and ranking within its peers.
ELLINGTON |
ELLINGTON FINL INC Cash Flow From Operations vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ELLINGTON FINL's current stock value. Our valuation model uses many indicators to compare ELLINGTON FINL value to that of its competitors to determine the firm's financial worth. ELLINGTON FINL INC is rated second in price to earning category among its peers. It is rated fourth in cash flow from operations category among its peers making about 1,993,234 of Cash Flow From Operations per Price To Earning. 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 FINL's earnings, one of the primary drivers of an investment's value.ELLINGTON Cash Flow From Operations vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
ELLINGTON FINL |
| = | 48.77 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
ELLINGTON FINL |
| = | 97.21 M |
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
ELLINGTON Cash Flow From Operations Comparison
ELLINGTON FINL is rated third in cash flow from operations category among its peers.
ELLINGTON FINL Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ELLINGTON FINL, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ELLINGTON FINL will eventually generate negative long term returns. The profitability progress is the general direction of ELLINGTON FINL's change in net profit over the period of time. It can combine multiple indicators of ELLINGTON FINL, 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.
Ellington Financial Inc., through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. Ellington Financial LLC was incorporated in 2007 and is based in Old Greenwich, Connecticut. ELLINGTON FINL operates under Mortgage Finance classification in Germany and is traded on Frankfurt Stock Exchange.
ELLINGTON Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ELLINGTON FINL. 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 FINL 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 FINL's important profitability drivers and their relationship over time.
Use ELLINGTON FINL 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 FINL 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 FINL will appreciate offsetting losses from the drop in the long position's value.ELLINGTON FINL Pair Trading
ELLINGTON FINL INC Pair Trading Analysis
The ability to find closely correlated positions to ELLINGTON FINL 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 FINL 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 FINL - 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 FINL INC to buy it.
The correlation of ELLINGTON FINL 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 FINL moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ELLINGTON FINL INC 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 FINL 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 FINL position
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Other Information on Investing in ELLINGTON Stock
To fully project ELLINGTON FINL's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ELLINGTON FINL INC 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 FINL's income statement, its balance sheet, and the statement of cash flows.