READY CAPITAL CORP (RC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RC - US75574U1016 - REIT
2.18 USD
+0.01 (+0.46%)
2.1801 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to RC. RC was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. RC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
RC had negative earnings in the past year.
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 (-3.93%) is worse than 83.82% of its industry peers.
With a Return On Equity value of -18.38%, RC is not doing good in the industry: 85.29% of the companies in the same industry are doing better.
| 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 worse Gross Margin (17.50%) than 73.53% 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 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 -0.08. 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 -0.08 is in line compared to the rest of the industry. RC outperforms 52.94% of 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 has a Debt to FCF ratio of 12.72. This is amongst the best in the industry. RC outperforms 95.59% of its industry peers.
RC has a Debt/Equity ratio of 3.49. This is a high value indicating a heavy dependency on external financing.
RC's Debt to Equity ratio of 3.49 is fine compared to the rest of the industry. RC outperforms 69.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 12.72 | ||
| Altman-Z | -0.08 |
ROIC/WACCN/A
WACC6.52%
2.3 Liquidity
RC has a Current Ratio of 1.03. This is a normal value and indicates that RC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.03, RC is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that RC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.03, RC is doing good in the industry, outperforming 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for RC have decreased strongly by -452.94% in the last year.
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.
The Revenue has decreased by -8.20% in the past year.
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 -47.91% on average over the next years. This is quite bad
RC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.19% yearly.
EPS Next Y-1984.9%
EPS Next 2Y-242.79%
EPS Next 3Y-47.91%
EPS Next 5YN/A
Revenue Next Year-28.95%
Revenue Next 2Y-2.81%
Revenue Next 3Y4.19%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
RC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year RC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| 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 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.72 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RC's earnings are expected to decrease with -47.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-242.79%
EPS Next 3Y-47.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.60%, RC is a good candidate for dividend investing.
The stock price of RC dropped by -42.18% 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 10.99, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.6% |
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
The earnings of RC are negative and hence is the payout ratio. RC will probably not be able to sustain this dividend level.
RC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-41.28%
EPS Next 2Y-242.79%
EPS Next 3Y-47.91%
2.18
+0.01 (+0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners63.07%
Inst Owner Change-9.19%
Ins Owners9.93%
Ins Owner Change0%
Market Cap353.44M
Revenue(TTM)770.37M
Net Income(TTM)-327.77M
Analysts46.67
Price Target3.76 (72.48%)
Short Float %19.63%
Short Ratio6.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.6% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-41.28%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-4.84%
PT rev (3m)-17.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-636%
EPS NY rev (1m)-215.52%
EPS NY rev (3m)-187.74%
Revenue NQ rev (1m)-21.55%
Revenue NQ rev (3m)-33.16%
Revenue NY rev (1m)34.89%
Revenue NY rev (3m)-5.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.46 | ||
| P/FCF | 0.72 | ||
| P/OCF | 0.72 | ||
| P/B | 0.2 | ||
| P/tB | 0.21 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.2
EYN/A
EPS(NY)-0.49
Fwd EYN/A
FCF(TTM)3.02
FCFY138.56%
OCF(TTM)3.03
OCFY138.86%
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 | -0.08 |
F-Score6
WACC6.52%
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-1984.9%
EPS Next 2Y-242.79%
EPS Next 3Y-47.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.2%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-79.36%
Revenue Next Year-28.95%
Revenue Next 2Y-2.81%
Revenue Next 3Y4.19%
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.
What is the valuation status for RC stock?
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.
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%.