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READY CAPITAL CORP (RC) Stock Fundamental Analysis

USA - NYSE:RC - US75574U1016 - REIT

3.87 USD
-0.17 (-4.21%)
Last: 9/30/2025, 8:04:00 PM
3.89 USD
+0.02 (+0.52%)
After Hours: 9/30/2025, 8:04:00 PM
Fundamental Rating

3

Taking everything into account, RC scores 3 out of 10 in our fundamental rating. RC was compared to 67 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.


Dividend Valuation Growth Profitability Health

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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.
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.
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

With a Return On Assets value of -3.42%, RC is not doing good in the industry: 82.09% of the companies in the same industry are doing better.
With a Return On Equity value of -17.34%, RC is not doing good in the industry: 79.10% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -3.42%
ROE -17.34%
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

With a Gross Margin value of 8.53%, RC is not doing good in the industry: 76.12% of the companies in the same industry are doing better.
RC's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for RC so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 8.53%
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

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4

2. Health

2.1 Basic Checks

RC does not have a ROIC to compare to the WACC, probably because it is not profitable.
RC has less shares outstanding than it did 1 year ago.
RC has more shares outstanding than it did 5 years ago.
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

Based on the Altman-Z score of -0.07, we must say that RC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RC (-0.07) is comparable to the rest of the industry.
RC has a debt to FCF ratio of 25.14. This is a negative value and a sign of low solvency as RC would need 25.14 years to pay back of all of its debts.
RC has a better Debt to FCF ratio (25.14) than 91.04% of its industry peers.
RC has a Debt/Equity ratio of 3.89. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 3.89, RC is doing good in the industry, outperforming 65.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.89
Debt/FCF 25.14
Altman-Z -0.07
ROIC/WACCN/A
WACC6.81%
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

A Current Ratio of 1.05 indicates that RC should not have too much problems paying its short term obligations.
RC's Current ratio of 1.05 is fine compared to the rest of the industry. RC outperforms 74.63% of its industry peers.
RC has a Quick Ratio of 1.05. This is a normal value and indicates that RC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.05, RC is doing good in the industry, outperforming 74.63% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.05
Quick Ratio 1.05
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

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6

3. Growth

3.1 Past

RC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -160.00%.
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 -6.28%.
RC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.46% yearly.
EPS 1Y (TTM)-160%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-300%
Revenue 1Y (TTM)-6.28%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-66.84%

3.2 Future

The Earnings Per Share is expected to grow by 87.50% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.20% on average over the next years. This is quite good.
EPS Next Y-755.08%
EPS Next 2Y33.1%
EPS Next 3Y87.5%
EPS Next 5YN/A
Revenue Next Year-25.18%
Revenue Next 2Y14.2%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 0.5 1 1.5 2

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2

4. Valuation

4.1 Price/Earnings Ratio

RC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 43.69 indicates a quite expensive valuation of RC.
83.58% of the companies in the same industry are cheaper than RC, based on the Price/Forward Earnings ratio.
RC is valuated expensively when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 43.69
RC Price Earnings VS Forward Price EarningsRC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30 40

4.2 Price Multiples

100.00% of the companies in the same industry are more expensive than RC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 2.24
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

RC's earnings are expected to grow with 87.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.1%
EPS Next 3Y87.5%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 10.42%, RC is a good candidate for dividend investing.
RC's Dividend Yield is comparable with the industry average which is at 11.22.
Compared to an average S&P500 Dividend Yield of 2.41, RC pays a better dividend.
Industry RankSector Rank
Dividend Yield 10.42%

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
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

RC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-52.39%
EPS Next 2Y33.1%
EPS Next 3Y87.5%
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

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READY CAPITAL CORP

NYSE:RC (9/30/2025, 8:04:00 PM)

After market: 3.89 +0.02 (+0.52%)

3.87

-0.17 (-4.21%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)11-05 2025-11-05/amc
Inst Owners68.01%
Inst Owner Change1.62%
Ins Owners8.2%
Ins Owner Change0%
Market Cap635.96M
Analysts47.5
Price Target4.54 (17.31%)
Short Float %17.42%
Short Ratio12.27
Dividend
Industry RankSector Rank
Dividend Yield 10.42%
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-52.39%
Div Incr Years0
Div Non Decr Years0
Ex-Date09-30 2025-09-30 (0.125)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-612.77%
Min EPS beat(2)-1051.17%
Max EPS beat(2)-174.36%
EPS beat(4)0
Avg EPS beat(4)-389.82%
Min EPS beat(4)-1051.17%
Max EPS beat(4)-114.25%
EPS beat(8)1
Avg EPS beat(8)-208.67%
EPS beat(12)1
Avg EPS beat(12)-142.88%
EPS beat(16)3
Avg EPS beat(16)-104%
Revenue beat(2)0
Avg Revenue beat(2)-69.49%
Min Revenue beat(2)-73.9%
Max Revenue beat(2)-65.08%
Revenue beat(4)0
Avg Revenue beat(4)-40.85%
Min Revenue beat(4)-73.9%
Max Revenue beat(4)-10.88%
Revenue beat(8)0
Avg Revenue beat(8)-36.57%
Revenue beat(12)2
Avg Revenue beat(12)-1.68%
Revenue beat(16)6
Avg Revenue beat(16)33.14%
PT rev (1m)0%
PT rev (3m)-11.88%
EPS NQ rev (1m)-340.21%
EPS NQ rev (3m)-176.23%
EPS NY rev (1m)-1372%
EPS NY rev (3m)-246.77%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)-14.43%
Revenue NY rev (3m)-15.34%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 43.69
P/S 0.85
P/FCF 2.24
P/OCF 2.23
P/B 0.35
P/tB 0.36
EV/EBITDA N/A
EPS(TTM)-0.54
EYN/A
EPS(NY)0.09
Fwd EY2.29%
FCF(TTM)1.73
FCFY44.65%
OCF(TTM)1.73
OCFY44.75%
SpS4.58
BVpS11.17
TBVpS10.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.42%
ROE -17.34%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 8.53%
FCFM 37.75%
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 3.89
Debt/FCF 25.14
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 0.09%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.05
Quick Ratio 1.05
Altman-Z -0.07
F-Score5
WACC6.81%
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)-160%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-300%
EPS Next Y-755.08%
EPS Next 2Y33.1%
EPS Next 3Y87.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.28%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-66.84%
Revenue Next Year-25.18%
Revenue Next 2Y14.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-189.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-6.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.24%
OCF growth 3YN/A
OCF growth 5YN/A