READY CAPITAL CORP - RC 9 12/15/29 (RCD) Stock Fundamental Analysis
NYSE:RCD - New York Stock Exchange, Inc. - US75574U8383 - Currency: USD
RCD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. The financial health of RCD is average, but there are quite some concerns on its profitability. While showing a medium growth rate, RCD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year RCD has reported negative net income.
RCD had a positive operating cash flow in the past year.
Of the past 5 years RCD 4 years were profitable.
RCD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RCD has a Return On Assets of -3.00%. This is amonst the worse of the industry: RCD underperforms 83.08% of its industry peers.
RCD's Return On Equity of -15.33% is on the low side compared to the rest of the industry. RCD is outperformed by 84.62% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
With a Gross Margin value of 6.99%, RCD is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RCD has declined.
RCD 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 | 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%
2. Health
2.1 Basic Checks
RCD does not have a ROIC to compare to the WACC, probably because it is not profitable.
RCD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RCD has been increased compared to 5 years ago.
Compared to 1 year ago, RCD has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that RCD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RCD (0.21) is better than 78.46% of its industry peers.
RCD has a debt to FCF ratio of 21.30. This is a negative value and a sign of low solvency as RCD would need 21.30 years to pay back of all of its debts.
RCD's Debt to FCF ratio of 21.30 is amongst the best of the industry. RCD outperforms 93.85% of its industry peers.
RCD has a Debt/Equity ratio of 3.87. This is a high value indicating a heavy dependency on external financing.
RCD has a Debt to Equity ratio (3.87) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.87 | ||
| Debt/FCF | 21.3 | ||
| Altman-Z | 0.21 |
ROIC/WACCN/A
WACC9.05%
2.3 Liquidity
RCD has a Current Ratio of 1.09. This is a normal value and indicates that RCD is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.09, RCD belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that RCD should not have too much problems paying its short term obligations.
The Quick ratio of RCD (1.09) is better than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for RCD have decreased strongly by -127.97% in the last year.
RCD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.62% yearly.
RCD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.89%.
Measured over the past years, RCD 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%-85.78%
3.2 Future
RCD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 111.61% yearly.
RCD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.44% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
RCD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
RCD is valuated quite expensively with a Price/Forward Earnings ratio of 55.40.
86.15% of the companies in the same industry are cheaper than RCD, based on the Price/Forward Earnings ratio.
RCD'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 | 55.4 |
4.2 Price Multiples
RCD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RCD is cheaper than 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.1 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RCD's 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 RCD'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%
5. Dividend
5.1 Amount
RCD has a Yearly Dividend Yield of 10.94%, which is a nice return.
Compared to an average industry Dividend Yield of 11.56, RCD has a dividend in line with its industry peers.
RCD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.94% |
5.2 History
The dividend of RCD decreases each year by -4.21%.
RCD 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
RCD has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-65.45%
EPS Next 2Y188.54%
EPS Next 3Y111.61%
23.06
+0.14 (+0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners63.94%
Inst Owner Change-39.9%
Ins Owners1.09%
Ins Owner ChangeN/A
Market Cap3.93B
Analysts47.5
Price Target25.97 (12.62%)
Short Float %0%
Short Ratio0.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.94% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-65.45%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)4
Avg Revenue beat(8)70.02%
Revenue beat(12)8
Avg Revenue beat(12)100.61%
Revenue beat(16)12
Avg Revenue beat(16)120.17%
PT rev (1m)-9.6%
PT rev (3m)-1.82%
EPS NQ rev (1m)-45.77%
EPS NQ rev (3m)-69.53%
EPS NY rev (1m)-62.75%
EPS NY rev (3m)-65.21%
Revenue NQ rev (1m)-9.16%
Revenue NQ rev (3m)-30.91%
Revenue NY rev (1m)-14.09%
Revenue NY rev (3m)-22.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 55.4 | ||
| P/S | 4.99 | ||
| P/FCF | 11.1 | ||
| P/OCF | 11.08 | ||
| P/B | 2.02 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.33
EYN/A
EPS(NY)0.42
Fwd EY1.81%
FCF(TTM)2.08
FCFY9.01%
OCF(TTM)2.08
OCFY9.03%
SpS4.62
BVpS11.44
TBVpS10.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.21 |
F-Score5
WACC9.05%
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%-85.78%
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