Ellington Financial

EFC

REIT - Mortgage · Real Estate

Price

$13.63

+0.01 (+0.07%)

Market Cap

$1.71B

Exchange

New York Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Exceptional

Growth

Strong

Cash Flow

Weak

Stability

Weak

Valuation

Strong

Dividends

Good

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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)

Winston Score History

The full picture

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.

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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

-16.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-4.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

2.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$247M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Revenue declining

Ellington Financial's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

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.

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Quality

Profit per sale

Gross Margin

60.7%

Premium pricing power — 60.7% gross margin

Profit after running costs

Operating Margin

56.7%

Excellent — 56.7% operating margin

Return on the money invested

ROCE

20.8%

Exceptional — 20.8% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+100.1%

Fast-growing sales (+100.1% YoY)

Profit growth

EPS YoY

+32.3%

Earnings growing fast (+32.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

-299%

Weak — only -299% of profit becomes cash

Spare cash per sale

FCF Margin

-114.1%

Burning cash (-114.1%)

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

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

2.73x

Tight — interest eats into profit (2.7x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

8.3x

Attractive valuation — P/E 8.3

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

Cheaper or dearer next year

P/E vs Forward

+1.3

GROWING

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

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Dividends

Dividend

Dividend Yield

11.47%

Healthy income — 11.47% yield

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

Dividend record

Dividend Growth

+0.0%

Dividend flat

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