Acquires and manages residential mortgage-backed securities (RMBS) including prime jumbo, Alt-A, manufactured housing, and subprime loans. Now — the numbers.
This is an established company with proven profits.
Average growth of 33% a year over the last 4 years. Red columns mark years that ended in a loss.
The market pays 11× for every dollar of annual profit — cheap, which is either an opportunity or a warning.
Against companies in its own sector, it looks cheaper than 73% of them.
Analysts' average target sits 5% above today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
For a bank, strength is measured by capital buffers and reserves — not cash minus debt.
Clearly above the class average — a step short of the very top.
Sales are growing strongly for its sector.
Clearly below the class average.
Financial Strength: The capital buffer looks thin next to its class; less room to absorb a rough stretch.
Price Momentum: The stock has lagged the market in recent months; investor interest is weak right now.
The stock trades 32% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 22% — the profit kept from each dollar of revenue is the company’s cushion in hard quarters.
Over the last 4 years, sales grew about 33% a year on average.
It met or beat analyst expectations in 8 of the last 8 quarters — consistency is a promise kept.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 13/100.
Buyers haven’t stepped back in yet; the price hasn’t found its footing. Report-card grade: 37/100. For a turnaround signal, the stock first needs to close the gap with the market.
On our five-subject report card, EFC sits behind the class. A low grade doesn’t mean “doomed” — it means “big claim, small proof.”
The takeaway: EFC does earn real profits — but on our report card it still sits behind its class. The real debate here isn’t the price — it’s whether the company can keep up this pace.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.
Not covered, because the filings we hold do not carry it: the revenue breakdown.