READY CAPITAL CORP (RC) Stock Fundamental Analysis
NYSE:RC - New York Stock Exchange, Inc. - US75574U1016 - REIT - Currency: USD
RC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of RC have multiple concerns. RC has a correct valuation and a medium growth rate.
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.
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
The Return On Assets of RC (-4.47%) is worse than 83.08% of its industry peers.
RC has a worse Return On Equity (-24.53%) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.47% | ||
| ROE | -24.53% | ||
| 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
With a Gross Margin value of 5.42%, RC is not doing good in the industry: 89.23% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RC has declined.
The Profit Margin and Operating Margin are not available for RC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 5.42% |
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.
Compared to 1 year ago, RC has less shares outstanding
RC has more shares outstanding than it did 5 years ago.
RC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.20, we must say that RC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.20, RC is in line with its industry, outperforming 44.62% of the companies in the same industry.
RC has a debt to FCF ratio of 29.34. This is a negative value and a sign of low solvency as RC would need 29.34 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 29.34, RC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
A Debt/Equity ratio of 3.97 is on the high side and indicates that RC has dependencies on debt financing.
RC has a Debt to Equity ratio of 3.97. This is comparable to the rest of the industry: RC outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.97 | ||
| Debt/FCF | 29.34 | ||
| Altman-Z | -0.2 |
ROIC/WACCN/A
WACC6.91%
2.3 Liquidity
RC has a Current Ratio of 0.18. This is a bad value and indicates that RC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.18, RC perfoms like the industry average, outperforming 50.77% of the companies in the same industry.
RC has a Quick Ratio of 0.18. This is a bad value and indicates that RC is not financially healthy enough and could expect problems in meeting its short term obligations.
RC has a Quick ratio (0.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
The earnings per share for RC have decreased strongly by -127.97% in the last year.
The earnings per share for RC have been decreasing by -49.62% on average. This is quite bad
Looking at the last year, RC shows a very negative growth in Revenue. The Revenue has decreased by -21.55% in the last year.
The Revenue has been growing by 20.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-127.97%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-131.03%
Revenue 1Y (TTM)-21.55%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-70.13%
3.2 Future
The Earnings Per Share is expected to grow by 136.24% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.68% on average over the next years. This is quite good.
EPS Next Y1098.24%
EPS Next 2Y240.47%
EPS Next 3Y136.24%
EPS Next 5YN/A
Revenue Next Year2.86%
Revenue Next 2Y11.68%
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.
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.
RC is valuated cheaply with a Price/Forward Earnings ratio of 7.23.
Based on the Price/Forward Earnings ratio, RC is valued a bit cheaper than 75.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. RC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.23 |
4.2 Price Multiples
98.46% of the companies in the same industry are more expensive than RC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.71 | ||
| EV/EBITDA | N/A |
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%
5. Dividend
5.1 Amount
RC has a Yearly Dividend Yield of 11.34%, which is a nice return.
The stock price of RC dropped by -37.65% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 13.69, RC is paying slightly less dividend.
RC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.34% |
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
5.3 Sustainability
RC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-45.5%
EPS Next 2Y240.47%
EPS Next 3Y136.24%
4.19
+0.06 (+1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners62.47%
Inst Owner Change4.95%
Ins Owners1.06%
Ins Owner Change4.71%
Market Cap714.35M
Analysts47.5
Price Target5.36 (27.92%)
Short Float %15.91%
Short Ratio7.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.34% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-45.5%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-166.87%
Min EPS beat(2)-219.49%
Max EPS beat(2)-114.25%
EPS beat(4)1
Avg EPS beat(4)-99.57%
Min EPS beat(4)-219.49%
Max EPS beat(4)7.41%
EPS beat(8)1
Avg EPS beat(8)-60.1%
EPS beat(12)1
Avg EPS beat(12)-41.81%
EPS beat(16)4
Avg EPS beat(16)-26.95%
Revenue beat(2)0
Avg Revenue beat(2)-12.21%
Min Revenue beat(2)-13.55%
Max Revenue beat(2)-10.88%
Revenue beat(4)0
Avg Revenue beat(4)-24.08%
Min Revenue beat(4)-42.26%
Max Revenue beat(4)-10.88%
Revenue beat(8)0
Avg Revenue beat(8)-27.33%
Revenue beat(12)4
Avg Revenue beat(12)24.68%
Revenue beat(16)8
Avg Revenue beat(16)82.98%
PT rev (1m)-4.55%
PT rev (3m)-35.38%
EPS NQ rev (1m)-7.84%
EPS NQ rev (3m)-41.25%
EPS NY rev (1m)-7.46%
EPS NY rev (3m)-35.37%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)-7.06%
Revenue NY rev (1m)-4.2%
Revenue NY rev (3m)-12.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.23 | ||
| P/S | 0.87 | ||
| P/FCF | 2.71 | ||
| P/OCF | 2.7 | ||
| P/B | 0.39 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.33
EYN/A
EPS(NY)0.58
Fwd EY13.83%
FCF(TTM)1.55
FCFY36.9%
OCF(TTM)1.55
OCFY37.1%
SpS4.83
BVpS10.83
TBVpS10.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.47% | ||
| ROE | -24.53% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 5.42% | ||
| FCFM | 32.04% |
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-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.97 | ||
| Debt/FCF | 29.34 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.17% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | -0.2 |
F-Score4
WACC6.91%
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)-21.55%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-70.13%
Revenue Next Year2.86%
Revenue Next 2Y11.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-493.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y526.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y385.89%
OCF growth 3YN/A
OCF growth 5YN/A