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Ellington FinancialSTU:1EL +0.42%58 ROA % is 2.14% as of Mar. 2026, which is 146% above its 10-year median of 0.87. GuruFocus rates STU:1EL with a GF Score™ of 58/100 and a GF Value™ of €9.99 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 939 REITs companies, Ellington Financial ranks worse than 69.86% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ellington Financial's annualizedNet Income for the quarter that ended in Mar. 2026 was €364.4 Mil.
Ellington Financial's average Total Assets over the quarter that ended in Mar. 2026 was €17,014.5 Mil. Therefore, Ellington Financial's annualized ROA % for the quarter that ended in Mar. 2026 was 2.14%.
The historical rank and industry rank for Ellington Financial's ROA % or its related term are showing as below:
STU:1EL'
s ROA % Range Over the Past 10 Years
Min: -0.73 Med: 0.87 Max: 3.11
Current: 1.17
During the past 13 years, Ellington Financial's highest ROA % was 3.11%. The lowest was -0.73%. And the median was 0.87%.
STU:1EL's ROA % is ranked worse than 69.86% of 939
companies
in the REITs industry
Industry Median: 3.18
vs STU:1EL: 1.17
Ellington Financial (STU:1EL) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Ellington Financial ROA % Related Terms
Ellington Financial ROA % Historical Data
* Premium members only.
The historical data trend for Ellington Financial's ROA % 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.
For the REIT - Mortgage subindustry, Ellington Financial's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Ellington Financial's ROA % distribution charts can be found below:
* The bar in red indicates where Ellington Financial's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Ellington Financial (STU:1EL) has a ROA % of 2.14% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Ellington Financial and its competitors. This is 146% above median its historical median of 0.87. According to the industry distribution chart, Ellington Financial ranks #656 out of 939 companies in the REITs industry, placing it in the top 69.9%.
Is Ellington Financial's ROA % too high?
Ellington Financial's current ROA % of 2.14% is 146% above median its 10-year median of 0.87. The REITs industry median ROA % is 3.18. Ellington Financial's value of 2.14% is 32.7% below this industry median. Based on the distribution chart, Ellington Financial ranks #656 out of 939 companies in the REITs industry, which is below the industry midpoint. Overall, Ellington Financial has a GF Score™ of 58/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ellington Financial's ROA % compare to ARI and ORC?
According to the REITs industry distribution chart, Ellington Financial ranks #656 out of 939 companies for ROA %. This places Ellington Financial in the lower half of its industry. The industry median ROA % is 3.18. Ellington Financial's value of 2.14% is 32.7% below this benchmark. While the company's 10-year median is 0.87 vs. the industry median of 3.18, Ellington Financial has consistently been below 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 ROA % for a REITs company?
The median ROA % among REITs companies is 3.18, based on 939 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ellington Financial's current ROA % of 2.14% is 32.7% below 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Ellington Financial and its competitors. For the REITs industry, the median ROA % is 3.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ellington Financial's current ROA % is 2.14%, which is 146% above median its own 10-year median of 0.87. 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 (STU:1EL) is currently considered Modestly Overvalued. The stock's GF Value™ is €9.99, compared to a current price of €11.90 — trading 19.1% above its estimated fair value. The current ROA % is 2.14%, which is 146% above median its 10-year median of 0.87 and 32.7% below the REITs industry median of 3.18. Ellington Financial's overall GF Score™ is 58/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Ellington Financial (STU:1EL), the current ROA % is 2.14% as of Mar. 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 (STU:1EL) Overvalued in 2026?
Based on GuruFocus' analysis, Ellington Financial stock appears to be overvalued.
The current stock price of €11.90 is trading 19.1% above its estimated GF Value™ of €9.99.
GuruFocus considers Ellington Financial to be Modestly Overvalued.
Key valuation signals for STU:1EL:
ROA %: 2.14% (146% above median its 10-year median of 0.87)
GF Value™: €9.99 vs. price of €11.90 (19.1% above fair value)
Industry Position: 32.7% below the REITs median (#656 of 939)
No single metric tells the full story. See the STU:1EL 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.
58GF Score
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