READY CAPITAL CORP (RC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RC - US75574U1016 - REIT
2.565 USD
+0.04 (+1.38%)
Overall RC gets a fundamental rating of 3 out of 10. We evaluated RC against 69 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While RC seems to be doing ok healthwise, there are quite some concerns on its profitability. RC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RC had negative earnings in the past year.
RC had a positive operating cash flow in the past year.
RC had positive earnings in 4 of the past 5 years.
RC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RC's Return On Assets of -3.93% is on the low side compared to the rest of the industry. RC is outperformed by 84.06% of its industry peers.
RC has a Return On Equity of -18.38%. This is amonst the worse of the industry: RC underperforms 85.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.93% | ||
| ROE | -18.38% | ||
| 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
1.3 Margins
RC has a Gross Margin of 17.50%. This is in the lower half of the industry: RC underperforms 73.91% of its industry peers.
RC's Gross Margin has declined in the last couple of years.
RC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.5% |
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%
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.
RC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RC has a worse debt to assets ratio.
2.2 Solvency
RC has an Altman-Z score of -0.07. This is a bad value and indicates that RC is not financially healthy and even has some risk of bankruptcy.
RC has a Altman-Z score (-0.07) which is in line with its industry peers.
The Debt to FCF ratio of RC is 12.72, which is on the high side as it means it would take RC, 12.72 years of fcf income to pay off all of its debts.
RC's Debt to FCF ratio of 12.72 is amongst the best of the industry. RC outperforms 95.65% of its industry peers.
A Debt/Equity ratio of 3.49 is on the high side and indicates that RC has dependencies on debt financing.
With a decent Debt to Equity ratio value of 3.49, RC is doing good in the industry, outperforming 68.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 12.72 | ||
| Altman-Z | -0.07 |
ROIC/WACCN/A
WACC6.58%
2.3 Liquidity
A Current Ratio of 1.03 indicates that RC should not have too much problems paying its short term obligations.
The Current ratio of RC (1.03) is better than 78.26% of its industry peers.
A Quick Ratio of 1.03 indicates that RC should not have too much problems paying its short term obligations.
The Quick ratio of RC (1.03) is better than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
RC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -452.94%.
Measured over the past years, RC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -49.62% on average per year.
RC shows a decrease in Revenue. In the last year, the revenue decreased by -8.20%.
The Revenue has been growing by 20.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-452.94%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-235.71%
Revenue 1Y (TTM)-8.2%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-79.36%
3.2 Future
The Earnings Per Share is expected to decrease by -112.69% on average over the next years. This is quite bad
Based on estimates for the next years, RC will show a quite strong growth in Revenue. The Revenue will grow by 12.88% on average per year.
EPS Next Y-697.4%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
EPS Next 5YN/A
Revenue Next Year-47.33%
Revenue Next 2Y12.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RC. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for RC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RC is valued cheaper than 98.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.85 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RC's earnings are expected to decrease with -112.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-91%
EPS Next 3Y-112.69%
5. Dividend
5.1 Amount
RC has a Yearly Dividend Yield of 9.45%, which is a nice return.
In the last 3 months the price of RC has falen by -41.03%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
With a Dividend Yield of 9.45, RC pays less dividend than the industry average, which is at 13.00. 85.51% of the companies listed in the same industry pay a better dividend than RC!
RC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.45% |
5.2 History
The dividend of RC decreases each year by -4.21%.
RC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-4.21%
Div Incr Years0
Div Non Decr Years0
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.
The Dividend Rate of RC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-41.28%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
NYSE:RC (12/2/2025, 3:59:05 PM)
2.565
+0.04 (+1.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners68.01%
Inst Owner Change-9.19%
Ins Owners8.2%
Ins Owner Change0%
Market Cap415.86M
Revenue(TTM)770.37M
Net Income(TTM)-327.77M
Analysts46.67
Price Target3.95 (54%)
Short Float %18.14%
Short Ratio10.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.45% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-41.28%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-868.96%
Min EPS beat(2)-1051.17%
Max EPS beat(2)-686.74%
EPS beat(4)0
Avg EPS beat(4)-506.63%
Min EPS beat(4)-1051.17%
Max EPS beat(4)-114.25%
EPS beat(8)1
Avg EPS beat(8)-291.42%
EPS beat(12)1
Avg EPS beat(12)-199.76%
EPS beat(16)2
Avg EPS beat(16)-149.18%
Revenue beat(2)0
Avg Revenue beat(2)-72.44%
Min Revenue beat(2)-79.8%
Max Revenue beat(2)-65.08%
Revenue beat(4)0
Avg Revenue beat(4)-58.08%
Min Revenue beat(4)-79.8%
Max Revenue beat(4)-13.55%
Revenue beat(8)0
Avg Revenue beat(8)-42.22%
Revenue beat(12)1
Avg Revenue beat(12)-21.31%
Revenue beat(16)5
Avg Revenue beat(16)14.46%
PT rev (1m)-12.92%
PT rev (3m)-12.92%
EPS NQ rev (1m)-1016.67%
EPS NQ rev (3m)-323.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-1260%
Revenue NQ rev (1m)-2.62%
Revenue NQ rev (3m)-20.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-39.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.54 | ||
| P/FCF | 0.85 | ||
| P/OCF | 0.85 | ||
| P/B | 0.23 | ||
| P/tB | 0.25 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.2
EYN/A
EPS(NY)-0.08
Fwd EYN/A
FCF(TTM)3.02
FCFY117.76%
OCF(TTM)3.03
OCFY118.02%
SpS4.75
BVpS11
TBVpS10.45
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.93% | ||
| ROE | -18.38% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.5% | ||
| FCFM | 63.57% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 12.72 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.14% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | -0.07 |
F-Score6
WACC6.58%
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)-452.94%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-235.71%
EPS Next Y-697.4%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.2%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-79.36%
Revenue Next Year-47.33%
Revenue Next 2Y12.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-97.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y72.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y64.87%
OCF growth 3YN/A
OCF growth 5YN/A
READY CAPITAL CORP / RC FAQ
What is the ChartMill fundamental rating of READY CAPITAL CORP (RC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to RC.
Can you provide the valuation status for READY CAPITAL CORP?
ChartMill assigns a valuation rating of 2 / 10 to READY CAPITAL CORP (RC). This can be considered as Overvalued.
What is the profitability of RC stock?
READY CAPITAL CORP (RC) has a profitability rating of 1 / 10.
What is the expected EPS growth for READY CAPITAL CORP (RC) stock?
The Earnings per Share (EPS) of READY CAPITAL CORP (RC) is expected to decline by -697.4% in the next year.
How sustainable is the dividend of READY CAPITAL CORP (RC) stock?
The dividend rating of READY CAPITAL CORP (RC) is 4 / 10 and the dividend payout ratio is -41.28%.