READY CAPITAL CORP - RC 7 08/15/23 (RCA) Fundamental Analysis & Valuation

NYSE:RCA • US75574U2006

Current stock price

24.97 USD
0 (0%)
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This RCA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. RCA Profitability Analysis

1.1 Basic Checks

  • In the past year RCA was profitable.
  • RCA had a positive operating cash flow in the past year.
RCA Yearly Net Income VS EBIT VS OCF VS FCFRCA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M 200M 300M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.74%, RCA is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
  • RCA's Return On Equity of 13.01% is amongst the best of the industry. RCA outperforms 93.75% of its industry peers.
  • RCA's Return On Invested Capital of 0.64% is in line compared to the rest of the industry. RCA outperforms 54.69% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for RCA is in line with the industry average of 1.29%.
Industry RankSector Rank
ROA 2.74%
ROE 13.01%
ROIC 0.64%
ROA(3y)1.27%
ROA(5y)1.44%
ROE(3y)8.71%
ROE(5y)9.15%
ROIC(3y)0.96%
ROIC(5y)0.71%
RCA Yearly ROA, ROE, ROICRCA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2 4 6 8 10

1.3 Margins

  • With an excellent Profit Margin value of 35.77%, RCA belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
  • RCA's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 9.63%, RCA is in line with its industry, outperforming 45.31% of the companies in the same industry.
  • RCA's Operating Margin has improved in the last couple of years.
  • The Gross Margin of RCA (31.20%) is worse than 62.50% of its industry peers.
  • RCA's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.63%
PM (TTM) 35.77%
GM 31.2%
OM growth 3Y14.53%
OM growth 5Y1.6%
PM growth 3Y-7.57%
PM growth 5Y-4.24%
GM growth 3Y5.31%
GM growth 5Y-2.33%
RCA Yearly Profit, Operating, Gross MarginsRCA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30 40

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4

2. RCA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RCA is destroying value.
  • RCA has more shares outstanding than it did 1 year ago.
  • RCA has a better debt/assets ratio than last year.
RCA Yearly Shares OutstandingRCA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
RCA Yearly Total Debt VS Total AssetsRCA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

  • RCA has an Altman-Z score of 0.40. This is a bad value and indicates that RCA is not financially healthy and even has some risk of bankruptcy.
  • RCA has a Altman-Z score of 0.40. This is in the better half of the industry: RCA outperforms 79.69% of its industry peers.
  • The Debt to FCF ratio of RCA is 30.89, which is on the high side as it means it would take RCA, 30.89 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 30.89, RCA is doing good in the industry, outperforming 60.94% of the companies in the same industry.
  • RCA has a Debt/Equity ratio of 3.60. This is a high value indicating a heavy dependency on external financing.
  • RCA's Debt to Equity ratio of 3.60 is in line compared to the rest of the industry. RCA outperforms 45.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.6
Debt/FCF 30.89
Altman-Z 0.4
ROIC/WACC0.11
WACC5.81%
RCA Yearly LT Debt VS Equity VS FCFRCA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 1.46 indicates that RCA should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.46, RCA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • A Quick Ratio of 1.46 indicates that RCA should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.46, RCA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.46
RCA Yearly Current Assets VS Current LiabilitesRCA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

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5

3. RCA Growth Analysis

3.1 Past

  • RCA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.06%.
  • RCA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.02% yearly.
  • Looking at the last year, RCA shows a very strong growth in Revenue. The Revenue has grown by 58.35%.
  • The Revenue has been growing by 38.42% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-34.06%
EPS 3Y6.11%
EPS 5Y5.02%
EPS Q2Q%-23.91%
Revenue 1Y (TTM)58.35%
Revenue growth 3Y45.73%
Revenue growth 5Y38.42%
Sales Q2Q%58.43%

3.2 Future

  • RCA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.62% yearly.
  • RCA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.17% yearly.
EPS Next Y-16.51%
EPS Next 2Y-5.26%
EPS Next 3Y-4.62%
EPS Next 5YN/A
Revenue Next Year25.78%
Revenue Next 2Y25.09%
Revenue Next 3Y18.17%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
RCA Yearly Revenue VS EstimatesRCA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
RCA Yearly EPS VS EstimatesRCA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

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2

4. RCA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 16.54, RCA is valued correctly.
  • RCA's Price/Earnings ratio is a bit more expensive when compared to the industry. RCA is more expensive than 62.50% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.18. RCA is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 15.12, RCA is valued correctly.
  • RCA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RCA is more expensive than 71.88% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 37.96. RCA is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 16.54
Fwd PE 15.12
RCA Price Earnings VS Forward Price EarningsRCA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCA is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 14.11
EV/EBITDA N/A
RCA Per share dataRCA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • A cheap valuation may be justified as RCA's earnings are expected to decrease with -4.62% in the coming years.
PEG (NY)N/A
PEG (5Y)3.29
EPS Next 2Y-5.26%
EPS Next 3Y-4.62%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. RCA Dividend Analysis

5.1 Amount

  • RCA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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RCA Fundamentals: All Metrics, Ratios and Statistics

READY CAPITAL CORP - RC 7 08/15/23

NYSE:RCA (8/14/2023, 8:04:00 PM)

24.97

0 (0%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)08-07
Earnings (Next)11-06
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.29B
Revenue(TTM)949.58M
Net Income(TTM)339.65M
Analysts81.25
Price Target28.16 (12.78%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP66.61%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.45%
Min EPS beat(2)-28.74%
Max EPS beat(2)-8.16%
EPS beat(4)0
Avg EPS beat(4)-11.28%
Min EPS beat(4)-28.74%
Max EPS beat(4)-4.05%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)191.47%
Min Revenue beat(2)170.69%
Max Revenue beat(2)212.26%
Revenue beat(4)4
Avg Revenue beat(4)180.11%
Min Revenue beat(4)155.82%
Max Revenue beat(4)212.26%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-11.43%
PT rev (3m)-12.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.31%
Valuation
Industry RankSector Rank
PE 16.54
Fwd PE 15.12
P/S 4.52
P/FCF 14.11
P/OCF 13.54
P/B 1.64
P/tB 1.68
EV/EBITDA N/A
EPS(TTM)1.51
EY6.05%
EPS(NY)1.65
Fwd EY6.61%
FCF(TTM)1.77
FCFY7.09%
OCF(TTM)1.84
OCFY7.39%
SpS5.52
BVpS15.19
TBVpS14.86
PEG (NY)N/A
PEG (5Y)3.29
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 2.74%
ROE 13.01%
ROCE N/A
ROIC 0.64%
ROICexc 0.65%
ROICexgc 1.9%
OM 9.63%
PM (TTM) 35.77%
GM 31.2%
FCFM N/A
ROA(3y)1.27%
ROA(5y)1.44%
ROE(3y)8.71%
ROE(5y)9.15%
ROIC(3y)0.96%
ROIC(5y)0.71%
ROICexc(3y)0.99%
ROICexc(5y)0.73%
ROICexgc(3y)2.23%
ROICexgc(5y)1.62%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y34.52%
ROICexgc growth 5Y12.93%
ROICexc growth 3Y25.68%
ROICexc growth 5Y3.16%
OM growth 3Y14.53%
OM growth 5Y1.6%
PM growth 3Y-7.57%
PM growth 5Y-4.24%
GM growth 3Y5.31%
GM growth 5Y-2.33%
F-Score7
Asset Turnover0.08
Health
Industry RankSector Rank
Debt/Equity 3.6
Debt/FCF 30.89
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 89.63%
Current Ratio 1.46
Quick Ratio 1.46
Altman-Z 0.4
F-Score7
WACC5.81%
ROIC/WACC0.11
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.06%
EPS 3Y6.11%
EPS 5Y5.02%
EPS Q2Q%-23.91%
EPS Next Y-16.51%
EPS Next 2Y-5.26%
EPS Next 3Y-4.62%
EPS Next 5YN/A
Revenue 1Y (TTM)58.35%
Revenue growth 3Y45.73%
Revenue growth 5Y38.42%
Sales Q2Q%58.43%
Revenue Next Year25.78%
Revenue Next 2Y25.09%
Revenue Next 3Y18.17%
Revenue Next 5YN/A
EBIT growth 1Y-33.96%
EBIT growth 3Y66.91%
EBIT growth 5Y40.64%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y632.99%
FCF growth 3YN/A
FCF growth 5Y-0.25%
OCF growth 1Y658.28%
OCF growth 3YN/A
OCF growth 5Y0.37%

READY CAPITAL CORP - RC 7 08/15/23 / RCA Fundamental Analysis FAQ

What is the ChartMill fundamental rating of READY CAPITAL CORP - RC 7 08/15/23 (RCA) stock?

ChartMill assigns a fundamental rating of 4 / 10 to RCA.


What is the valuation status of READY CAPITAL CORP - RC 7 08/15/23 (RCA) stock?

ChartMill assigns a valuation rating of 2 / 10 to READY CAPITAL CORP - RC 7 08/15/23 (RCA). This can be considered as Overvalued.


How profitable is READY CAPITAL CORP - RC 7 08/15/23 (RCA) stock?

READY CAPITAL CORP - RC 7 08/15/23 (RCA) has a profitability rating of 5 / 10.


Can you provide the PE and PB ratios for RCA stock?

The Price/Earnings (PE) ratio for READY CAPITAL CORP - RC 7 08/15/23 (RCA) is 16.54 and the Price/Book (PB) ratio is 1.64.


What is the expected EPS growth for READY CAPITAL CORP - RC 7 08/15/23 (RCA) stock?

The Earnings per Share (EPS) of READY CAPITAL CORP - RC 7 08/15/23 (RCA) is expected to decline by -16.51% in the next year.