Ellington Credit CoEARN +0.67%37 ROE % 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 37/100. The stock has 4 warning signs investors should review. Among 1,614 Asset Management companies, Ellington Credit Co ranks better than 58.86% on this metric.
The historical rank and industry rank for Ellington Credit Co's ROE % or its related term are showing as below:
EARN'
s ROE % 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 ROE % was 14.15%. The lowest was -22.65%. And the median was 5.06%.
EARN's ROE % is ranked better than 58.86% of 1614
companies
in the Asset Management industry
Industry Median: 6.36
vs EARN: 8.56
Ellington Credit Co (NYSE:EARN) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Ellington Credit Co ROE % Related Terms
Ellington Credit Co ROE % Historical Data
* Premium members only.
The historical data trend for Ellington Credit Co's ROE % 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 Asset Management subindustry, Ellington Credit Co's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ellington Credit Co's ROE % distribution charts can be found below:
* The bar in red indicates where Ellington Credit Co's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Ellington Credit Co (EARN) has a ROE % of 13.83% as of Sep. 2025. Return on equity is the ratio of current-period net income to average two-period total 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 #664 out of 1614 companies in the Asset Management industry, placing it in the top 41.1%.
Is Ellington Credit Co's ROE % too high?
Ellington Credit Co's current ROE % of 13.83% is 173% above median its 10-year median of 5.06. The Asset Management industry median ROE % is 6.36. Ellington Credit Co's value of 13.83% is 117.5% above this industry median. Based on the distribution chart, Ellington Credit Co ranks #664 out of 1614 companies in the Asset Management industry, which is above the industry midpoint. Overall, Ellington Credit Co has a GF Score™ of 37/100, reflecting its overall financial health beyond just this single metric.
How does Ellington Credit Co's ROE % compare to FLC and DHF?
According to the Asset Management industry distribution chart, Ellington Credit Co ranks #664 out of 1614 companies for ROE %. This puts Ellington Credit Co in the upper half of its industry. The industry median ROE % is 6.36. Ellington Credit Co's value of 13.83% is 117.5% above this benchmark. While the company's 10-year median is 5.06 vs. the industry median of 6.36, 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 ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.36, based on 1,614 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ellington Credit Co's current ROE % of 13.83% is 117.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ellington Credit Co and its competitors. For the Asset Management industry, the median ROE % is 6.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ellington Credit Co's current ROE % 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 ROE % of 13.83%. The current ROE % is 13.83%, which is 173% above median its 10-year median of 5.06 and 117.5% above the Asset Management industry median of 6.36. Ellington Credit Co's overall GF Score™ is 37/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Ellington Credit Co (EARN), the current ROE % 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.
37GF Score
Get the complete analysis for EARN
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
EARN has been successfully added to your 
