READY CAPITAL CORP (RC) Stock Fundamental Analysis
NYSE:RC - US75574U1016 - REIT
4.39 USD
+0.1 (+2.33%)
We assign a fundamental rating of 4 out of 10 to RC. RC was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. The financial health of RC is average, but there are quite some concerns on its profitability. While showing a medium growth rate, RC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year RC has reported negative net income.
RC had a positive operating cash flow in the past year.
Of the past 5 years RC 4 years were profitable.
Of the past 5 years RC 4 years had a positive operating cash flow.
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.
RC has a worse Return On Equity (-17.34%) than 79.10% of its industry peers.
| Industry Rank | Sector 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
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 Rank | Sector 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%
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.
RC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.06, we must say that RC is in the distress zone and has some risk of bankruptcy.
RC has a Altman-Z score of -0.06. This is comparable to the rest of the industry: RC outperforms 55.22% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 25.14, RC belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
A Debt/Equity ratio of 3.89 is on the high side and indicates that RC has dependencies on debt financing.
The Debt to Equity ratio of RC (3.89) is better than 65.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.89 | ||
| Debt/FCF | 25.14 | ||
| Altman-Z | -0.06 |
ROIC/WACCN/A
WACC6.89%
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.
A Quick Ratio of 1.05 indicates that RC should not have too much problems paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The earnings per share for RC have decreased strongly by -160.00% in the last year.
The earnings per share for RC have been decreasing by -49.62% on average. This is quite bad
RC shows a decrease in Revenue. In the last year, the revenue decreased by -6.28%.
The Revenue has been growing by 20.46% on average over the past years. This is a very strong growth!
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 111.61% on average over the next years. This is a very strong growth
Based on estimates for the next years, RC will show a quite strong growth in Revenue. The Revenue will grow by 15.86% on average per year.
EPS Next Y-48.5%
EPS Next 2Y102.98%
EPS Next 3Y111.61%
EPS Next 5YN/A
Revenue Next Year-12.57%
Revenue Next 2Y15.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
RC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 21.31, which indicates a rather expensive current valuation of RC.
Based on the Price/Forward Earnings ratio, RC is valued a bit more expensive than 73.13% of the companies in the same industry.
RC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.31 |
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 | 2.54 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as RC's earnings are expected to grow with 111.61% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y102.98%
EPS Next 3Y111.61%
5. Dividend
5.1 Amount
RC has a Yearly Dividend Yield of 11.74%, which is a nice return.
Compared to an average industry Dividend Yield of 11.13, RC pays a bit more dividend than its industry peers.
RC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.74% |
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-52.39%
EPS Next 2Y102.98%
EPS Next 3Y111.61%
NYSE:RC (9/8/2025, 12:21:13 PM)
4.39
+0.1 (+2.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners64.08%
Inst Owner Change1.62%
Ins Owners1.09%
Ins Owner Change0.18%
Market Cap721.41M
Analysts47.5
Price Target4.54 (3.42%)
Short Float %18.98%
Short Ratio14.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.74% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-52.39%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-13.59%
PT rev (3m)-15.24%
EPS NQ rev (1m)-62.22%
EPS NQ rev (3m)-85.53%
EPS NY rev (1m)-88.46%
EPS NY rev (3m)-95.7%
Revenue NQ rev (1m)-15.74%
Revenue NQ rev (3m)-13.45%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.31 | ||
| P/S | 0.96 | ||
| P/FCF | 2.54 | ||
| P/OCF | 2.53 | ||
| P/B | 0.39 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.54
EYN/A
EPS(NY)0.21
Fwd EY4.69%
FCF(TTM)1.73
FCFY39.36%
OCF(TTM)1.73
OCFY39.45%
SpS4.58
BVpS11.17
TBVpS10.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | -0.06 |
F-Score5
WACC6.89%
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-48.5%
EPS Next 2Y102.98%
EPS Next 3Y111.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.28%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-66.84%
Revenue Next Year-12.57%
Revenue Next 2Y15.86%
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