Logo image of RC

READY CAPITAL CORP (RC) Stock Fundamental Analysis

NYSE:RC - New York Stock Exchange, Inc. - US75574U1016 - REIT - Currency: USD

4.4  -0.07 (-1.57%)

After market: 4.4 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to RC. RC was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. The financial health of RC is average, but there are quite some concerns on its profitability. RC has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

In the past year RC has reported negative net income.
In the past year RC had a positive cash flow from operations.
Of the past 5 years RC 4 years were profitable.
RC had a positive operating cash flow in 4 of the past 5 years.
RC Yearly Net Income VS EBIT VS OCF VS FCFRC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M

1.2 Ratios

RC's Return On Assets of -3.00% is on the low side compared to the rest of the industry. RC is outperformed by 81.54% of its industry peers.
With a Return On Equity value of -15.33%, RC is not doing good in the industry: 83.08% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -3%
ROE -15.33%
ROIC N/A
ROA(3y)-0.12%
ROA(5y)0.39%
ROE(3y)-0.69%
ROE(5y)2.85%
ROIC(3y)N/A
ROIC(5y)N/A
RC Yearly ROA, ROE, ROICRC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

RC has a Gross Margin of 6.99%. This is amonst the worse of the industry: RC underperforms 90.77% of its industry peers.
In the last couple of years the Gross Margin of RC has declined.
RC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 6.99%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-50.56%
GM growth 5Y-31.49%
RC Yearly Profit, Operating, Gross MarginsRC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60

5

2. Health

2.1 Basic Checks

RC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RC has been reduced compared to 1 year ago.
Compared to 5 years ago, RC has more shares outstanding
The debt/assets ratio for RC is higher compared to a year ago.
RC Yearly Shares OutstandingRC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
RC Yearly Total Debt VS Total AssetsRC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

RC has an Altman-Z score of -0.03. This is a bad value and indicates that RC is not financially healthy and even has some risk of bankruptcy.
RC's Altman-Z score of -0.03 is in line compared to the rest of the industry. RC outperforms 55.38% of its industry peers.
RC has a debt to FCF ratio of 21.30. This is a negative value and a sign of low solvency as RC would need 21.30 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 21.30, RC belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
RC has a Debt/Equity ratio of 3.87. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.87, RC is in line with its industry, outperforming 60.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.87
Debt/FCF 21.3
Altman-Z -0.03
ROIC/WACCN/A
WACC6.94%
RC Yearly LT Debt VS Equity VS FCFRC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

2.3 Liquidity

RC has a Current Ratio of 1.09. This is a normal value and indicates that RC is financially healthy and should not expect problems in meeting its short term obligations.
RC has a better Current ratio (1.09) than 86.15% of its industry peers.
A Quick Ratio of 1.09 indicates that RC should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.09, RC belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09
RC Yearly Current Assets VS Current LiabilitesRC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

5

3. Growth

3.1 Past

The earnings per share for RC have decreased strongly by -127.97% in the last year.
RC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.62% yearly.
RC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.89%.
Measured over the past years, RC shows a very strong growth in Revenue. The Revenue has been growing by 20.46% on average per year.
EPS 1Y (TTM)-127.97%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-131.03%
Revenue 1Y (TTM)-12.89%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-70.13%

3.2 Future

Based on estimates for the next years, RC will show a very strong growth in Earnings Per Share. The EPS will grow by 136.24% on average per year.
Based on estimates for the next years, RC will show a small growth in Revenue. The Revenue will grow by 2.61% on average per year.
EPS Next Y1098.24%
EPS Next 2Y240.47%
EPS Next 3Y136.24%
EPS Next 5YN/A
Revenue Next Year-11.6%
Revenue Next 2Y2.61%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
RC Yearly Revenue VS EstimatesRC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
RC Yearly EPS VS EstimatesRC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for RC. In the last year negative earnings were reported.
RC is valuated cheaply with a Price/Forward Earnings ratio of 7.59.
Based on the Price/Forward Earnings ratio, RC is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.13. RC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 7.59
RC Price Earnings VS Forward Price EarningsRC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of RC indicates a rather cheap valuation: RC is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 2.12
EV/EBITDA N/A
RC Per share dataRC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RC's earnings are expected to grow with 136.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y240.47%
EPS Next 3Y136.24%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 11.19%, RC is a good candidate for dividend investing.
RC's Dividend Yield is slightly below the industry average, which is at 12.57.
RC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 11.19%

5.2 History

The dividend of RC decreases each year by -4.21%.
RC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-4.21%
Div Incr Years0
Div Non Decr Years0
RC Yearly Dividends per shareRC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

The earnings of RC are negative and hence is the payout ratio. RC will probably not be able to sustain this dividend level.
DP-65.45%
EPS Next 2Y240.47%
EPS Next 3Y136.24%
RC Yearly Income VS Free CF VS DividendRC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M

READY CAPITAL CORP

NYSE:RC (6/13/2025, 8:04:00 PM)

After market: 4.4 0 (0%)

4.4

-0.07 (-1.57%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners63.94%
Inst Owner Change5.07%
Ins Owners1.09%
Ins Owner Change4.71%
Market Cap750.24M
Analysts47.5
Price Target5.15 (17.05%)
Short Float %18.35%
Short Ratio11.05
Dividend
Industry RankSector Rank
Dividend Yield 11.19%
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-65.45%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-31 2025-03-31 (0.125)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-144.31%
Min EPS beat(2)-174.36%
Max EPS beat(2)-114.25%
EPS beat(4)0
Avg EPS beat(4)-145.01%
Min EPS beat(4)-219.49%
Max EPS beat(4)-71.94%
EPS beat(8)1
Avg EPS beat(8)-78.3%
EPS beat(12)1
Avg EPS beat(12)-55.58%
EPS beat(16)4
Avg EPS beat(16)-37.52%
Revenue beat(2)0
Avg Revenue beat(2)-43.72%
Min Revenue beat(2)-73.9%
Max Revenue beat(2)-13.55%
Revenue beat(4)0
Avg Revenue beat(4)-31.99%
Min Revenue beat(4)-73.9%
Max Revenue beat(4)-10.88%
Revenue beat(8)0
Avg Revenue beat(8)-33.12%
Revenue beat(12)3
Avg Revenue beat(12)11.86%
Revenue beat(16)7
Avg Revenue beat(16)53.61%
PT rev (1m)-3.81%
PT rev (3m)-37.85%
EPS NQ rev (1m)-69.53%
EPS NQ rev (3m)-78.98%
EPS NY rev (1m)-7.46%
EPS NY rev (3m)-35.37%
Revenue NQ rev (1m)-30.91%
Revenue NQ rev (3m)-36.99%
Revenue NY rev (1m)-18.42%
Revenue NY rev (3m)-24.97%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 7.59
P/S 0.95
P/FCF 2.12
P/OCF 2.11
P/B 0.38
P/tB 0.4
EV/EBITDA N/A
EPS(TTM)-0.33
EYN/A
EPS(NY)0.58
Fwd EY13.17%
FCF(TTM)2.08
FCFY47.2%
OCF(TTM)2.08
OCFY47.31%
SpS4.62
BVpS11.44
TBVpS10.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3%
ROE -15.33%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 6.99%
FCFM 44.95%
ROA(3y)-0.12%
ROA(5y)0.39%
ROE(3y)-0.69%
ROE(5y)2.85%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-50.56%
GM growth 5Y-31.49%
F-Score5
Asset Turnover0.08
Health
Industry RankSector Rank
Debt/Equity 3.87
Debt/FCF 21.3
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 0.1%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.09
Quick Ratio 1.09
Altman-Z -0.03
F-Score5
WACC6.94%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.94%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-127.97%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-131.03%
EPS Next Y1098.24%
EPS Next 2Y240.47%
EPS Next 3Y136.24%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.89%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-70.13%
Revenue Next Year-11.6%
Revenue Next 2Y2.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-533.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y6.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.32%
OCF growth 3YN/A
OCF growth 5YN/A