READY CAPITAL CORP - RC 5 3/4 02/15/26 (RCC) Stock Fundamental Analysis
NYSE:RCC - New York Stock Exchange, Inc. - US75574U6064 - Currency: USD
RCC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of RCC have multiple concerns. RCC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RCC had negative earnings in the past year.
In the past year RCC had a positive cash flow from operations.
RCC had positive earnings in 4 of the past 5 years.
Of the past 5 years RCC 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -4.47%, RCC is not doing good in the industry: 87.69% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -24.53%, RCC is doing worse than 96.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.47% | ||
| ROE | -24.53% | ||
| 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 5.42%, RCC is not doing good in the industry: 93.85% of the companies in the same industry are doing better.
RCC's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for RCC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 5.42% |
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
RCC does not have a ROIC to compare to the WACC, probably because it is not profitable.
RCC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RCC has more shares outstanding
RCC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.05, we must say that RCC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RCC (0.05) is better than 67.69% of its industry peers.
RCC has a debt to FCF ratio of 29.34. This is a negative value and a sign of low solvency as RCC would need 29.34 years to pay back of all of its debts.
The Debt to FCF ratio of RCC (29.34) is better than 72.31% of its industry peers.
RCC has a Debt/Equity ratio of 3.97. This is a high value indicating a heavy dependency on external financing.
RCC's Debt to Equity ratio of 3.97 is in line compared to the rest of the industry. RCC outperforms 55.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.97 | ||
| Debt/FCF | 29.34 | ||
| Altman-Z | 0.05 |
ROIC/WACCN/A
WACC7.21%
2.3 Liquidity
RCC has a Current Ratio of 0.18. This is a bad value and indicates that RCC is not financially healthy enough and could expect problems in meeting its short term obligations.
RCC has a Current ratio (0.18) which is in line with its industry peers.
RCC has a Quick Ratio of 0.18. This is a bad value and indicates that RCC is not financially healthy enough and could expect problems in meeting its short term obligations.
RCC has a Quick ratio (0.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
The earnings per share for RCC have decreased strongly by -127.97% in the last year.
The earnings per share for RCC have been decreasing by -49.62% on average. This is quite bad
RCC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.55%.
RCC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.46% yearly.
EPS 1Y (TTM)-127.97%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-131.03%
Revenue 1Y (TTM)-21.55%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-70.13%
3.2 Future
RCC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 136.24% yearly.
RCC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.68% yearly.
EPS Next Y1098.24%
EPS Next 2Y240.47%
EPS Next 3Y136.24%
EPS Next 5YN/A
Revenue Next Year2.86%
Revenue Next 2Y11.68%
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
RCC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 42.40, the valuation of RCC can be described as expensive.
Based on the Price/Forward Earnings ratio, RCC is valued more expensive than 87.69% of the companies in the same industry.
RCC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 42.4 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as RCC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.89 | ||
| EV/EBITDA | N/A |
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.
RCC's earnings are expected to grow with 136.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y240.47%
EPS Next 3Y136.24%
5. Dividend
5.1 Amount
RCC has a Yearly Dividend Yield of 11.34%, which is a nice return.
Compared to an average industry Dividend Yield of 13.69, RCC is paying slightly less dividend.
RCC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.34% |
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 Years2
Div Non Decr Years3
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-45.5%
EPS Next 2Y240.47%
EPS Next 3Y136.24%
READY CAPITAL CORP - RC 5 3/4 02/15/26
NYSE:RCC (5/23/2025, 8:50:26 PM)
24.575
0 (-0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners62.47%
Inst Owner ChangeN/A
Ins Owners1.06%
Ins Owner ChangeN/A
Market Cap4.19B
Analysts47.5
Price Target29.44 (19.8%)
Short Float %0%
Short Ratio0.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.34% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-45.5%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-166.87%
Min EPS beat(2)-219.49%
Max EPS beat(2)-114.25%
EPS beat(4)1
Avg EPS beat(4)-99.57%
Min EPS beat(4)-219.49%
Max EPS beat(4)7.41%
EPS beat(8)1
Avg EPS beat(8)-60.1%
EPS beat(12)1
Avg EPS beat(12)-41.81%
EPS beat(16)4
Avg EPS beat(16)-26.95%
Revenue beat(2)0
Avg Revenue beat(2)-12.21%
Min Revenue beat(2)-13.55%
Max Revenue beat(2)-10.88%
Revenue beat(4)0
Avg Revenue beat(4)-24.08%
Min Revenue beat(4)-42.26%
Max Revenue beat(4)-10.88%
Revenue beat(8)0
Avg Revenue beat(8)-27.33%
Revenue beat(12)4
Avg Revenue beat(12)24.68%
Revenue beat(16)8
Avg Revenue beat(16)82.98%
PT rev (1m)7.92%
PT rev (3m)-1.4%
EPS NQ rev (1m)-7.84%
EPS NQ rev (3m)-41.25%
EPS NY rev (1m)-7.46%
EPS NY rev (3m)-35.37%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)-7.06%
Revenue NY rev (1m)-4.2%
Revenue NY rev (3m)-12.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 42.4 | ||
| P/S | 5.09 | ||
| P/FCF | 15.89 | ||
| P/OCF | 15.81 | ||
| P/B | 2.27 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.33
EYN/A
EPS(NY)0.58
Fwd EY2.36%
FCF(TTM)1.55
FCFY6.29%
OCF(TTM)1.55
OCFY6.33%
SpS4.83
BVpS10.83
TBVpS10.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.47% | ||
| ROE | -24.53% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 5.42% | ||
| FCFM | 32.04% |
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-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.97 | ||
| Debt/FCF | 29.34 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.17% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 0.05 |
F-Score4
WACC7.21%
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 Y1098.24%
EPS Next 2Y240.47%
EPS Next 3Y136.24%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.55%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-70.13%
Revenue Next Year2.86%
Revenue Next 2Y11.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-493.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y526.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y385.89%
OCF growth 3YN/A
OCF growth 5YN/A