| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 75 | 8.1x | 17.8x | Top tier | |
Growth | 94 | 119.5% | 7.1% | Top tier | |
Quality | 54 | 3.5% | 4.5% | Around median | |
Safety | 19 | 24.5x | 2.6x | Bottom tier | |
Capital Return | 3 | — | 2.12% | Bottom tier | |
Momentum | 58 | -4.5% | 2.9% | Around median | |
Sentiment | 61 | 5 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Ellington Financial Inc., listed under the ticker EFC, operates as an integrated real estate investment and financing platform that combines purchasing loans and originating them through partners, securitizing them, retaining selected tranches, and servicing reverse mortgages through Longbridge. Earnings are generated primarily from net interest income on the loan portfolio and retained tranches, securitization gains, loan servicing income, and contributions from its stakes in loan originators; most of the investment portfolio’s earnings in Q2 fiscal 2026 came from loans purchased through subsidiaries, then securitized, with the residual tranches retained.
In Q2 fiscal 2026, EFC recorded GAAP net income of $0.43 per share and adjusted distributable earnings of $0.60 per share, versus quarterly distributions of $0.39 per share, and generated an annualized economic return of 13.6%. The net interest margin was 336 basis points, and book value increased by $0.05 to $13.61 per share after distributions were paid. Longbridge contributed approximately $0.23 to adjusted distributable earnings, while the remaining activities, after general expenses, contributed approximately $0.37.
The latest available EDGAR statements for Q1 fiscal 2026 showed revenue of $110.0 million, net income of $95.5 million, and earnings per share of $0.78. By comparison, fiscal 2025 recorded revenue of $146.5 million, net income of $118.7 million, and earnings per share of $1.19. Longbridge’s mix in Q2 fiscal 2026 included loan originations of approximately $590 million, of which 54% were proprietary reverse mortgages and 46% were HECM loans.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $13.50, within a narrow range of $13 to $14, accompanied by a consensus “Buy” rating. The average is approximately 4.4% below the upper end of the 52-week range of $14.12, while the 52-week range extends from $11.28 to $14.12; the narrow target range indicates closely aligned expectations rather than substantial re-rating potential. A price-to-earnings ratio is not available in the provided data, so EFC’s valuation is more clearly based on book value of $13.61 per share, the sustainability of distribution coverage, and leverage risk of 9.2 times.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
EFC generated GAAP net income of $0.43 per share and adjusted distributable earnings of $0.60 per share in Q2 fiscal 2026. Performance came from higher net interest income, growth in the average portfolio size, Longbridge’s strength, and the execution of securitizations. Longbridge contributed approximately $0.23 per share, while the remaining activities contributed approximately $0.37 after general expenses. The annualized economic return during the quarter was 13.6%.
Longbridge originated approximately $590 million of loans in Q2 fiscal 2026, an increase of 38% year over year. Proprietary reverse mortgages represented 54% of volume, versus 46% for HECM loans, and the company completed two securitizations of the proprietary product during the quarter. Its contribution to adjusted distributable earnings was $0.23 per share, compared with a quarterly average of $0.12 during fiscal 2025. Submitted application volume also reached $870 million, and July 2026 set a monthly record for originations and applications in the proprietary product.
Adjusted distributable earnings were $0.60 per share in Q2 fiscal 2026, versus quarterly distributions of $0.39 per share. GAAP net income of $0.43 per share also exceeded the distributions. The company covered its distributions for eight consecutive quarters through that quarter, and book value increased by $0.05 to $13.61 per share after distributions were paid. Management maintained the monthly distribution at $0.13, preferring to use excess earnings to build book value.
EFC purchases loans through its gateway and partners, then pools them into securitization issuances while retaining selected tranches to generate future income. The gateway purchased more than $15 million of loans per day from more than 40 sellers and supplied a significant portion of the nearly $2 billion of loans securitized in Q2 fiscal 2026. Total securitizations reached approximately $4 billion of principal during the first half of fiscal 2026, versus $4.4 billion during the entirety of fiscal 2025. This process also helps release capital and replace short-term financing with longer-term, non-recourse financing.
Total debt-to-equity was 9.2 times at the end of Q2 fiscal 2026, while the recourse debt ratio remained at 1.9 times. Management observed greater weakness among borrowers with low FICO scores and cash-out refinancing borrowers and also noted an increasing supply of non-performing commercial real estate loans. Conversely, cumulative realized credit losses were 17 basis points on approximately $20.4 billion of residential mortgage financing and 39 basis points on more than $2.5 billion of commercial bridge loans. The average remaining term of repurchase agreements was 9.3 months, reducing near-term refinancing risk compared with mid-2025.
The analyst consensus provided in the data is “Buy,” with an average price target of $13.50. Targets range from $13 to $14, a relatively narrow range that reflects closely aligned analyst estimates. The average is approximately 4.4% below the 52-week high of $14.12, while the lower end of the range is $11.28. A price-to-earnings ratio is not available in the provided data, so book value of $13.61 per share, distribution coverage, and financial leverage remain key pillars of the company’s valuation.
