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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Ellington Financial's Net-Net Working Capital for the quarter that ended in Jun. 2026 was $-149.20.
The industry rank for Ellington Financial's Net-Net Working Capital or its related term are showing as below:
EFC's Price-to-Net-Net-Working-Capital is not ranked *
in the REITs industry.
Industry Median: 16.2 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Ellington Financial (NYSE:EFC) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Ellington Financial Net-Net Working Capital Related Terms
Ellington Financial Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Ellington Financial's Net-Net Working Capital can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
EFC vs ARR, ORC, TWO: Net-Net Working Capital Comparison
For the REIT - Mortgage subindustry, Ellington Financial's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ellington Financial Price-to-Net-Net-Working-Capital vs REITs Industry
For the REITs industry and Real Estate sector, Ellington Financial's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Ellington Financial's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-149.20 mean?
Ellington Financial (EFC) has a Net-Net Working Capital of $-149.20 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Ellington Financial According to the industry distribution chart, Ellington Financial ranks #999999 out of 111 companies in the REITs industry.
Is Ellington Financial's Net-Net Working Capital too high?
Ellington Financial's current Net-Net Working Capital is $-149.20. Based on the distribution chart, Ellington Financial ranks #999999 out of 111 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Ellington Financial has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ellington Financial's Net-Net Working Capital compare to ARR and ORC?
According to the REITs industry distribution chart, Ellington Financial ranks #999999 out of 111 companies for Net-Net Working Capital. This places Ellington Financial in the lower half of its industry. The industry median Net-Net Working Capital is 16.20. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a REITs company?
The median Net-Net Working Capital among REITs companies is 16.20, based on 111 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Ellington Financial For the REITs industry, the median Net-Net Working Capital is 16.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ellington Financial's current Net-Net Working Capital is $-149.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ellington Financial stock overvalued right now?
Based on GuruFocus' analysis, Ellington Financial (EFC) is currently considered Modestly Overvalued. The stock's GF Value™ is $11.92, compared to a current price of $13.71 — trading 15% above its estimated fair value. The current Net-Net Working Capital is $-149.20. Ellington Financial's overall GF Score™ is 71/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Ellington Financial (EFC), the current Net-Net Working Capital is $-149.20 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ellington Financial (EFC) Overvalued in 2026?
Based on GuruFocus' analysis, Ellington Financial stock appears to be overvalued.
The current stock price of $13.71 is trading 15% above its estimated GF Value™ of $11.92.
GuruFocus considers Ellington Financial to be Modestly Overvalued.
Key valuation signals for EFC:
Net-Net Working Capital: $-149.20
GF Value™: $11.92 vs. price of $13.71 (15% above fair value)
No single metric tells the full story. See the EFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ellington Financial Inc is a specialty finance company. Its primary investment objective is to generate attractive, risk-adjusted total returns for its shareholders by making investments. The company has two reportable segments; The Investment Portfolio Segment is focused on investing in a diverse array of financial assets, including residential and commercial mortgage loans, residential mortgage-backed securities, non-mortgage- and mortgage-related derivatives, debt and equity investments in loan origination companies, and other strategic investments, and The Longbridge Segment is focused on the origination and servicing of reverse mortgage loans. It acquires reverse mortgage loans both through its origination activities and through secondary market purchases.
71GF Score
Get the complete analysis for EFC
Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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