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READY CAPITAL CORP (RC) Stock Fundamental Analysis

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

4.21  -0.07 (-1.64%)

After market: 4.21 0 (0%)

Fundamental Rating

4

Overall RC gets a fundamental rating of 4 out of 10. We evaluated RC against 66 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 has a decent growth rate and is not valued too expensively.


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.
Of the past 5 years RC 4 years were profitable.
Of the past 5 years RC 4 years had a positive operating cash flow.
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 has a worse Return On Assets (-3.00%) than 81.82% of its industry peers.
RC has a worse Return On Equity (-15.33%) than 83.33% of its industry peers.
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 90.91% of its industry peers.
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 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

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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.
With a Altman-Z score value of -0.03, RC perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
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.
RC has a better Debt to FCF ratio (21.30) than 95.45% of its industry peers.
A Debt/Equity ratio of 3.87 is on the high side and indicates that RC has dependencies on debt financing.
With a decent Debt to Equity ratio value of 3.87, RC is doing good in the industry, outperforming 60.61% 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
WACC6.91%
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.
With an excellent Current ratio value of 1.09, RC belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
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 86.36% 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

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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 111.61% on average per year.
The Revenue is expected to grow by 8.44% on average over the next years. This is quite good.
EPS Next Y346.34%
EPS Next 2Y188.54%
EPS Next 3Y111.61%
EPS Next 5YN/A
Revenue Next Year-11.63%
Revenue Next 2Y8.44%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last 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 0.5 1 1.5 2

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5

4. Valuation

4.1 Price/Earnings Ratio

RC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
RC is valuated reasonably with a Price/Forward Earnings ratio of 10.11.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RC is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RC to the average of the S&P500 Index (36.44), we can say RC is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 10.11
RC Price Earnings VS Forward Price EarningsRC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30

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 2.03
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 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 111.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y188.54%
EPS Next 3Y111.61%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 10.89%, RC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.56, RC has a dividend in line with its industry peers.
RC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
Industry RankSector Rank
Dividend Yield 10.89%

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

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 2Y188.54%
EPS Next 3Y111.61%
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 (7/18/2025, 8:07:15 PM)

After market: 4.21 0 (0%)

4.21

-0.07 (-1.64%)

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)08-06 2025-08-06/amc
Inst Owners63.94%
Inst Owner Change0%
Ins Owners1.09%
Ins Owner Change4.71%
Market Cap717.85M
Analysts47.5
Price Target5.15 (22.33%)
Short Float %19.09%
Short Ratio14.5
Dividend
Industry RankSector Rank
Dividend Yield 10.89%
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-65.45%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-30 2025-06-30 (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)0%
PT rev (3m)-8.18%
EPS NQ rev (1m)-37.5%
EPS NQ rev (3m)-80.95%
EPS NY rev (1m)-62.75%
EPS NY rev (3m)-65.21%
Revenue NQ rev (1m)10.69%
Revenue NQ rev (3m)-23.53%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-17.7%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 10.11
P/S 0.91
P/FCF 2.03
P/OCF 2.02
P/B 0.37
P/tB 0.39
EV/EBITDA N/A
EPS(TTM)-0.33
EYN/A
EPS(NY)0.42
Fwd EY9.89%
FCF(TTM)2.08
FCFY49.33%
OCF(TTM)2.08
OCFY49.44%
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
WACC6.91%
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 Y346.34%
EPS Next 2Y188.54%
EPS Next 3Y111.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.89%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-70.13%
Revenue Next Year-11.63%
Revenue Next 2Y8.44%
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