READY CAPITAL CORP (RC) Stock Fundamental Analysis
USA - NYSE:RC - US75574U1016 - REIT
2.9 USD
-0.03 (-1.02%)
2.9299 USD
+0.03 (+1.03%)
Overall RC gets a fundamental rating of 3 out of 10. We evaluated RC against 68 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. RC is quite expensive at the moment. It does show a decent 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
With a Return On Assets value of -3.42%, RC is not doing good in the industry: 83.82% of the companies in the same industry are doing better.
RC has a worse Return On Equity (-17.34%) than 83.82% 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
RC has a Gross Margin of 8.53%. This is in the lower half of the industry: RC underperforms 77.94% of its industry peers.
RC's Gross Margin has declined in the last couple of years.
RC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
RC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RC has been increased compared to 5 years ago.
RC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.08, we must say that RC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.08, RC perfoms like the industry average, outperforming 54.41% of the companies in the same 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.
With an excellent Debt to FCF ratio value of 25.14, RC belongs to the best of the industry, outperforming 92.65% 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.
Looking at the Debt to Equity ratio, with a value of 3.89, RC is in the better half of the industry, outperforming 66.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.89 | ||
| Debt/FCF | 25.14 | ||
| Altman-Z | -0.08 |
ROIC/WACCN/A
WACC6.65%
2.3 Liquidity
RC has a Current 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.
The Current ratio of RC (1.05) is better than 73.53% 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 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
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%.
RC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.62% yearly.
The Revenue has decreased by -6.28% in the past year.
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
RC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -112.69% yearly.
Based on estimates for the next years, RC will show a quite strong growth in Revenue. The Revenue will grow by 12.88% on average per year.
EPS Next Y-697.4%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
EPS Next 5YN/A
Revenue Next Year-47.33%
Revenue Next 2Y12.88%
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 decreasing.
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.
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
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.68 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RC's earnings are expected to decrease with -112.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-91%
EPS Next 3Y-112.69%
5. Dividend
5.1 Amount
RC has a Yearly Dividend Yield of 17.12%, which is a nice return.
In the last 3 months the price of RC has falen by -28.75%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 12.83, RC pays a better dividend. On top of this RC pays more dividend than 89.71% of the companies listed in the same industry.
RC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.12% |
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
5.3 Sustainability
RC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of RC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-52.39%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
2.9
-0.03 (-1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners68.01%
Inst Owner Change-1.2%
Ins Owners8.2%
Ins Owner Change0%
Market Cap476.56M
Revenue(TTM)752.30M
Net Income(TTM)-318363000
Analysts47.5
Price Target4.46 (53.79%)
Short Float %16.86%
Short Ratio11.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.12% |
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)-1.69%
PT rev (3m)-15.05%
EPS NQ rev (1m)10.77%
EPS NQ rev (3m)-228.89%
EPS NY rev (1m)8.81%
EPS NY rev (3m)-233.84%
Revenue NQ rev (1m)23.76%
Revenue NQ rev (3m)-11.21%
Revenue NY rev (1m)11.71%
Revenue NY rev (3m)-40.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.63 | ||
| P/FCF | 1.68 | ||
| P/OCF | 1.67 | ||
| P/B | 0.26 | ||
| P/tB | 0.27 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.54
EYN/A
EPS(NY)-0.08
Fwd EYN/A
FCF(TTM)1.73
FCFY59.59%
OCF(TTM)1.73
OCFY59.72%
SpS4.58
BVpS11.17
TBVpS10.64
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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
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-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 | -0.08 |
F-Score5
WACC6.65%
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-697.4%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.28%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-66.84%
Revenue Next Year-47.33%
Revenue Next 2Y12.88%
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
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.
Can you provide the valuation status for READY CAPITAL CORP?
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.
What is the expected EPS growth for READY CAPITAL CORP (RC) stock?
The Earnings per Share (EPS) of READY CAPITAL CORP (RC) is expected to decline by -697.4% in the next year.
How sustainable is the dividend of READY CAPITAL CORP (RC) stock?
The dividend rating of READY CAPITAL CORP (RC) is 5 / 10 and the dividend payout ratio is -52.39%.