EFCEllington Financial Inc.

$11.67-3.1% 1Y

Is the business good?

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More warning than reassurance: margins compressing and returns that lean on debt.

2 to watch, 2 without data
Margin direction, 3 years−2.7 pts

Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.

Where ROE comes from10.5× leverage

Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 8% = margin × turnover × leverage.

All from derived.

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.