Is Ellington Credit Co (EARN) Halal?

NYSE Financial Services United States $164M
✗ NOT HALAL
Confidence: 95/100
Ellington Credit Co (EARN) is Not Halal under AAOIFI Standard 21 due to its classification in the Asset Management industry, which is excluded under Shariah screening. Companies operating in prohibited sectors such as conventional banking, insurance, alcohol, tobacco, and gambling are automatically excluded regardless of their financial ratios.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI Excluded — Asset Management ✗ NOT HALAL
DJIM Excluded — Asset Management ✗ NOT HALAL
MSCI Excluded — Asset Management ✗ NOT HALAL
S&P Excluded — Asset Management ✗ NOT HALAL
FTSE Excluded — Asset Management ✗ NOT HALAL

Financial Highlights

P/E Ratio
15.6
Forward: 4.0
EPS
$0.28
Dividend Yield
2197.0%
P/B Ratio
0.7
Revenue
$16M
Growth: -61.0%
Beta
1.3
High volatility
Current Ratio
0.1

Profitability

Gross Margin 100.0%
Operating Margin 68.4%
Net Margin -14.6%
Return on Equity (ROE) -2.8%
Return on Assets (ROA) -0.6%

Cash Flow & Balance Sheet

Operating Cash Flow$9M
Free Cash Flow$9M
Current Ratio0.1
Total Assets$824M

Price & Trading

Last Close$4.48
50-Day MA$5.02
200-Day MA$5.39
Avg Volume491K
Beta1.3
52-Week Range
$4.27
$6.08

About Ellington Credit Co (EARN)

CEO
Mr. Laurence Eric Penn
Sector
Financial Services
Industry
Asset Management
Country
United States
Exchange
NYSE
Market Cap
$164M
Currency
USD

Ellington Credit Company, a closed-end management investment company, focuses on generating current yields and risk-adjusted total returns by investing primarily in collateralized loan obligations. It invests in mezzanine debt and equity tranches. The company was formerly known as Ellington Residential Mortgage REIT and changed its name to Ellington Credit Company in April 2024. Ellington Credit Company was incorporated in 2012 and is headquartered in Old Greenwich, Connecticut.

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Frequently Asked Questions

Is Ellington Credit Co (EARN) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Ellington Credit Co is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Ellington Credit Co's debt ratio?

Ellington Credit Co's debt ratio is not available under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%.

What are Ellington Credit Co's key financial metrics?

Ellington Credit Co has a market capitalization of $164M, trailing P/E ratio of 15.6, and revenue of $16M. The company maintains a gross margin of 100.0% and a net margin of -14.6%. Return on equity stands at -2.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.