Ellington Financial Operating Margin vs. Net Income

EFC Stock  USD 12.27  0.11  0.90%   
Taking into consideration Ellington Financial's profitability measurements, Ellington Financial is performing exceptionally good at this time. It has a great odds to showcase excellent profitability results in January. Profitability indicators assess Ellington Financial's ability to earn profits and add value for shareholders.

Ellington Financial Operating Profit Margin

0.51

The current year's EV To Sales is expected to grow to 76.40, whereas Price To Sales Ratio is forecasted to decline to 3.25. At present, Ellington Financial's Income Tax Expense is projected to decrease significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 93.7 M, whereas Accumulated Other Comprehensive Income is projected to grow to (337.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin1.020.5091
Way Up
Pretty Stable
For Ellington Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ellington Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ellington Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ellington Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ellington Financial over time as well as its relative position and ranking within its peers.
  
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For information on how to trade Ellington Stock refer to our How to Trade Ellington Stock guide.
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 Financial. 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 Financial 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
0.908
Dividend Share
1.66
Earnings Share
1.29
Revenue Per Share
3.539
Quarterly Revenue Growth
0.19
The market value of Ellington Financial 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 Financial's value that differs from its market value or its book value, called intrinsic value, which is Ellington Financial'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 Financial's market value can be influenced by many factors that don't directly affect Ellington Financial'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 Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ellington Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ellington Financial'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 Financial Net Income vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ellington Financial's current stock value. Our valuation model uses many indicators to compare Ellington Financial value to that of its competitors to determine the firm's financial worth.
Ellington Financial is rated below average in operating margin category among its peers. It is rated # 3 in net income category among its peers making up about  184,516,129  of Net Income per Operating Margin. At present, Ellington Financial's Operating Profit Margin is projected to increase slightly based on the last few years of reporting. 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 Financial's earnings, one of the primary drivers of an investment's value.

Ellington Net Income vs. Operating Margin

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 Financial

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.46 %
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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Ellington Financial

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
84.08 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Ellington Net Income Comparison

Ellington Financial is currently under evaluation in net income category among its peers.

Ellington Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ellington Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ellington Financial will eventually generate negative long term returns. The profitability progress is the general direction of Ellington Financial's change in net profit over the period of time. It can combine multiple indicators of Ellington Financial, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-355.6 M-337.8 M
Operating Income130.6 M77.1 M
Net Income84.1 M88.3 M
Income Tax Expense457 K479.9 K
Income Before Tax89.2 M93.7 M
Net Loss-76.8 M-73 M
Net Income From Continuing Ops95.4 M53.7 M
Non Operating Income Net Other-57.3 M-54.4 M
Total Other Income Expense Net-41.4 M-39.3 M
Interest Income361.3 M379.4 M
Net Interest Income109.9 M103.8 M
Change To Netincome1.3 M1.2 M
Net Income Per Share 1.22  1.99 
Income Quality(2.88)(2.73)
Net Income Per E B T 0.94  0.99 

Ellington Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ellington Financial. 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 Financial 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 Financial's important profitability drivers and their relationship over time.

Use Ellington Financial 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 Financial 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 Financial will appreciate offsetting losses from the drop in the long position's value.

Ellington Financial Pair Trading

Ellington Financial Pair Trading Analysis

The ability to find closely correlated positions to Ellington Financial 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 Financial 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 Financial - 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 Financial to buy it.
The correlation of Ellington Financial 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 Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ellington Financial 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 Financial 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ellington Financial position

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When determining whether Ellington Financial offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ellington Financial'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 Financial Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ellington Financial Stock:
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For information on how to trade Ellington Stock refer to our How to Trade Ellington Stock guide.
You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
To fully project Ellington Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ellington Financial 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 Financial's income statement, its balance sheet, and the statement of cash flows.
Potential Ellington Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ellington Financial investors may work on each financial statement separately, they are all related. The changes in Ellington Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ellington Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.