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Ellington Credit CoEARN +0.68%36 Return-on-Tangible-Equity is 13.83% as of Sep. 2025, which is 173% above its 10-year median of 5.06. GuruFocus rates EARN with a GF Score™ of 36/100. The stock has 3 warning signs investors should review. Among 1,589 Asset Management companies, Ellington Credit Co ranks better than 55.32% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ellington Credit Co's annualized net income for the quarter that ended in Sep. 2025 was $28.97 Mil. Ellington Credit Co's average shareholder tangible equity for the quarter that ended in Sep. 2025 was $209.41 Mil. Therefore, Ellington Credit Co's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 was 13.83%.
The historical rank and industry rank for Ellington Credit Co's Return-on-Tangible-Equity or its related term are showing as below:
EARN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -22.65 Med: 5.06 Max: 14.15
Current: 8.56
During the past 12 years, Ellington Credit Co's highest Return-on-Tangible-Equity was 14.15%. The lowest was -22.65%. And the median was 5.06%.
EARN's Return-on-Tangible-Equity is ranked better than 55.32% of 1589
companies
in the Asset Management industry
Industry Median: 7.21
vs EARN: 8.56
Ellington Credit Co (NYSE:EARN) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ellington Credit Co Return-on-Tangible-Equity Related Terms
Ellington Credit Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ellington Credit Co's Return-on-Tangible-Equity 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.
Ellington Credit Co Return-on-Tangible-Equity Chart
EARN vs VBF, FLC, HGLB: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Ellington Credit Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Credit Co Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ellington Credit Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ellington Credit Co's Return-on-Tangible-Equity 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 the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Sep. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.83% mean?
Ellington Credit Co (EARN) has a Return-on-Tangible-Equity of 13.83% as of Sep. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ellington Credit Co and its competitors. This is 173% above median its historical median of 5.06. According to the industry distribution chart, Ellington Credit Co ranks #710 out of 1589 companies in the Asset Management industry, placing it in the top 44.7%.
Is Ellington Credit Co's Return-on-Tangible-Equity too high?
Ellington Credit Co's current Return-on-Tangible-Equity of 13.83% is 173% above median its 10-year median of 5.06. The Asset Management industry median Return-on-Tangible-Equity is 7.21. Ellington Credit Co's value of 13.83% is 91.8% above this industry median. Based on the distribution chart, Ellington Credit Co ranks #710 out of 1589 companies in the Asset Management industry, which is above the industry midpoint. Overall, Ellington Credit Co has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Ellington Credit Co's Return-on-Tangible-Equity compare to VBF and FLC?
According to the Asset Management industry distribution chart, Ellington Credit Co ranks #710 out of 1589 companies for Return-on-Tangible-Equity. This puts Ellington Credit Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.21. Ellington Credit Co's value of 13.83% is 91.8% above this benchmark. While the company's 10-year median is 5.06 vs. the industry median of 7.21, Ellington Credit Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.21, based on 1,589 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ellington Credit Co's current Return-on-Tangible-Equity of 13.83% is 91.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ellington Credit Co and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ellington Credit Co's current Return-on-Tangible-Equity is 13.83%, which is 173% above median its own 10-year median of 5.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ellington Credit Co stock overvalued right now?
Ellington Credit Co (EARN) has a current Return-on-Tangible-Equity of 13.83%. The current Return-on-Tangible-Equity is 13.83%, which is 173% above median its 10-year median of 5.06 and 91.8% above the Asset Management industry median of 7.21. Ellington Credit Co's overall GF Score™ is 36/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ellington Credit Co (EARN), the current Return-on-Tangible-Equity is 13.83% as of Sep. 2025. 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.
Ellington Credit Co The Fund is focused on acquiring and actively managing a portfolio of corporate CLOs, mainly mezzanine debt and equity tranches, which are typically collateralized by portfolios consisting mainly of below-investment-grade senior secured loans with a large number of discrete underlying borrowers across various industry sectors. Additionally, the Fund may also invest in CLO loan accumulation facilities, which are entities that acquire corporate loans and other similar corporate credit-related assets in anticipation of ultimately collateralizing a CLO transaction. The company's primary investment objectives are to generate attractive current income and risk-adjusted total returns for shareholders.
36GF Score
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