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READY CAPITAL CORP - RC 5 3/4 02/15/26 (RCC) Stock Fundamental Analysis

NYSE:RCC - New York Stock Exchange, Inc. - US75574U6064 - Currency: USD

24.46  -0.05 (-0.2%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to RCC. RCC was compared to 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While RCC seems to be doing ok healthwise, there are quite some concerns on its profitability. RCC is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year RCC has reported negative net income.
RCC had a positive operating cash flow in the past year.
Of the past 5 years RCC 4 years were profitable.
RCC had a positive operating cash flow in 4 of the past 5 years.
RCC Yearly Net Income VS EBIT VS OCF VS FCFRCC 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

With a Return On Assets value of -3.00%, RCC is not doing good in the industry: 86.36% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -15.33%, RCC is doing worse than 87.88% of the companies in the same industry.
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
RCC Yearly ROA, ROE, ROICRCC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

RCC has a Gross Margin of 6.99%. This is amonst the worse of the industry: RCC underperforms 95.45% of its industry peers.
In the last couple of years the Gross Margin of RCC has declined.
RCC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
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%
RCC Yearly Profit, Operating, Gross MarginsRCC 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

RCC does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, RCC has less shares outstanding
Compared to 5 years ago, RCC has more shares outstanding
Compared to 1 year ago, RCC has a worse debt to assets ratio.
RCC Yearly Shares OutstandingRCC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
RCC Yearly Total Debt VS Total AssetsRCC 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

Based on the Altman-Z score of 0.23, we must say that RCC is in the distress zone and has some risk of bankruptcy.
RCC has a better Altman-Z score (0.23) than 81.82% of its industry peers.
The Debt to FCF ratio of RCC is 21.30, which is on the high side as it means it would take RCC, 21.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RCC (21.30) is better than 90.91% of its industry peers.
RCC has a Debt/Equity ratio of 3.87. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.87, RCC perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.87
Debt/FCF 21.3
Altman-Z 0.23
ROIC/WACCN/A
WACC7.22%
RCC Yearly LT Debt VS Equity VS FCFRCC 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

A Current Ratio of 1.09 indicates that RCC should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.09, RCC belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
RCC has a Quick Ratio of 1.09. This is a normal value and indicates that RCC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.09, RCC belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09
RCC Yearly Current Assets VS Current LiabilitesRCC 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

RCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -127.97%.
The earnings per share for RCC have been decreasing by -49.62% on average. This is quite bad
Looking at the last year, RCC shows a very negative growth in Revenue. The Revenue has decreased by -12.89% in the last year.
Measured over the past years, RCC 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

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, RCC will show a quite strong growth in Revenue. The Revenue will grow by 8.44% on average per year.
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

The EPS growth rate is accelerating: in the next years the growth will be better 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.
RCC Yearly Revenue VS EstimatesRCC 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
RCC Yearly EPS VS EstimatesRCC 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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3

4. Valuation

4.1 Price/Earnings Ratio

RCC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 58.76 indicates a quite expensive valuation of RCC.
Based on the Price/Forward Earnings ratio, RCC is valued expensively inside the industry as 87.88% of the companies are valued cheaper.
RCC is valuated expensively when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 58.76
RCC Price Earnings VS Forward Price EarningsRCC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 -40 -60

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, RCC is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 11.78
EV/EBITDA N/A
RCC Per share dataRCC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RCC's earnings are expected to grow with 111.61% in the coming years.
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 11.68%, RCC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.56, RCC has a dividend in line with its industry peers.
RCC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
Industry RankSector Rank
Dividend Yield 11.68%

5.2 History

The dividend of RCC decreases each year by -4.21%.
RCC has been paying a dividend for over 5 years, so it has already some track record.
RCC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-4.21%
Div Incr Years0
Div Non Decr Years3
RCC Yearly Dividends per shareRCC Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.5 1

5.3 Sustainability

The earnings of RCC are negative and hence is the payout ratio. RCC will probably not be able to sustain this dividend level.
DP-65.45%
EPS Next 2Y188.54%
EPS Next 3Y111.61%
RCC Yearly Income VS Free CF VS DividendRCC 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 - RC 5 3/4 02/15/26

NYSE:RCC (7/18/2025, 8:07:18 PM)

24.46

-0.05 (-0.2%)

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 ChangeN/A
Ins Owners1.09%
Ins Owner ChangeN/A
Market Cap4.17B
Analysts47.5
Price Target30.51 (24.73%)
Short Float %0.01%
Short Ratio0.83
Dividend
Industry RankSector Rank
Dividend Yield 11.68%
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-65.45%
Div Incr Years0
Div Non Decr Years3
Ex-Date07-15 2025-07-15 (0.359375)
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)0.65%
PT rev (3m)1.92%
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 58.76
P/S 5.29
P/FCF 11.78
P/OCF 11.75
P/B 2.14
P/tB 2.24
EV/EBITDA N/A
EPS(TTM)-0.33
EYN/A
EPS(NY)0.42
Fwd EY1.7%
FCF(TTM)2.08
FCFY8.49%
OCF(TTM)2.08
OCFY8.51%
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 0.23
F-Score5
WACC7.22%
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