RF CAPITAL GROUP INC (RCG.CA) Stock Fundamental Analysis
TSX:RCG - Toronto Stock Exchange - CA74971G4016 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to RCG. RCG was compared to 80 industry peers in the Capital Markets industry. The financial health of RCG is average, but there are quite some concerns on its profitability. RCG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
RCG had positive earnings in the past year.
RCG had a positive operating cash flow in the past year.
In the past 5 years RCG reported 4 times negative net income.
In multiple years RCG reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.48%, RCG is doing worse than 67.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of -2.08%, RCG is doing worse than 68.75% of the companies in the same industry.
RCG has a Return On Invested Capital (2.95%) which is comparable to the rest of the industry.
RCG had an Average Return On Invested Capital over the past 3 years of 3.08%. This is significantly below the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -2.08% | ||
| ROIC | 2.95% |
ROA(3y)-0.65%
ROA(5y)-0.38%
ROE(3y)-2.89%
ROE(5y)-1.81%
ROIC(3y)3.08%
ROIC(5y)2.14%
1.3 Margins
Looking at the Operating Margin, with a value of 5.75%, RCG is doing worse than 67.50% of the companies in the same industry.
In the last couple of years the Operating Margin of RCG has declined.
The Gross Margin of RCG (56.87%) is better than 72.50% of its industry peers.
RCG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.75% | ||
| PM (TTM) | N/A | ||
| GM | 56.87% |
OM growth 3Y56.36%
OM growth 5Y-15.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.65%
GM growth 5YN/A
2. Health
2.1 Basic Checks
RCG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RCG has less shares outstanding
Compared to 1 year ago, RCG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.19, we must say that RCG is in the distress zone and has some risk of bankruptcy.
RCG's Altman-Z score of 0.19 is on the low side compared to the rest of the industry. RCG is outperformed by 71.25% of its industry peers.
The Debt to FCF ratio of RCG is 4.18, which is a neutral value as it means it would take RCG, 4.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.18, RCG is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
RCG has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.49, RCG is in line with its industry, outperforming 53.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 0.19 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.15 indicates that RCG should not have too much problems paying its short term obligations.
The Current ratio of RCG (1.15) is comparable to the rest of the industry.
A Quick Ratio of 1.15 indicates that RCG should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, RCG perfoms like the industry average, outperforming 58.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
RCG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.53%, which is quite impressive.
The Revenue has been growing slightly by 7.54% in the past year.
The Revenue has been growing by 58.60% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)49.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-134.62%
Revenue 1Y (TTM)7.54%
Revenue growth 3Y3.98%
Revenue growth 5Y58.6%
Sales Q2Q%11.23%
3.2 Future
The Earnings Per Share is expected to grow by 30.26% on average over the next years. This is a very strong growth
Based on estimates for the next years, RCG will show a small growth in Revenue. The Revenue will grow by 7.07% on average per year.
EPS Next Y-36.37%
EPS Next 2Y30.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.14%
Revenue Next 2Y7.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.00, which indicates a correct valuation of RCG.
RCG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.21, RCG is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.43, which indicates a very decent valuation of RCG.
Based on the Price/Forward Earnings ratio, RCG is valued a bit cheaper than 65.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, RCG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 9.43 |
4.2 Price Multiples
95.00% of the companies in the same industry are more expensive than RCG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RCG is valued cheaply inside the industry as 96.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.3 | ||
| EV/EBITDA | 4.22 |
4.3 Compensation for Growth
RCG's earnings are expected to grow with 30.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for RCG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:RCG (5/9/2025, 7:00:00 PM)
8
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners0.88%
Inst Owner ChangeN/A
Ins Owners0.55%
Ins Owner ChangeN/A
Market Cap125.76M
Analysts80
Price Target16.32 (104%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.28
Dividend Growth(5Y)11.18%
DP-63.97%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)1.11%
Min Revenue beat(2)0.98%
Max Revenue beat(2)1.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)1.24%
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)-1.54%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)18.87%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.38%
Revenue NY rev (3m)-3.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 9.43 | ||
| P/S | 0.33 | ||
| P/FCF | 3.3 | ||
| P/OCF | 3.07 | ||
| P/B | 0.39 | ||
| P/tB | 12.26 | ||
| EV/EBITDA | 4.22 |
EPS(TTM)0.5
EY6.25%
EPS(NY)0.85
Fwd EY10.6%
FCF(TTM)2.42
FCFY30.28%
OCF(TTM)2.61
OCFY32.59%
SpS24.13
BVpS20.47
TBVpS0.65
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -2.08% | ||
| ROCE | 4.09% | ||
| ROIC | 2.95% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 13.15% | ||
| OM | 5.75% | ||
| PM (TTM) | N/A | ||
| GM | 56.87% | ||
| FCFM | 10.04% |
ROA(3y)-0.65%
ROA(5y)-0.38%
ROE(3y)-2.89%
ROE(5y)-1.81%
ROIC(3y)3.08%
ROIC(5y)2.14%
ROICexc(3y)5.14%
ROICexc(5y)6.44%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)4.28%
ROCE(5y)2.98%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-17.26%
ROICexc growth 5YN/A
OM growth 3Y56.36%
OM growth 5Y-15.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.65%
GM growth 5YN/A
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 11.58% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 2.01 | ||
| Cash Conversion | 87.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 0.19 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)35.57%
Cap/Depr(5y)34.23%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)49.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-134.62%
EPS Next Y-36.37%
EPS Next 2Y30.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.54%
Revenue growth 3Y3.98%
Revenue growth 5Y58.6%
Sales Q2Q%11.23%
Revenue Next Year6.14%
Revenue Next 2Y7.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-32.86%
EBIT growth 3Y62.59%
EBIT growth 5Y34.21%
EBIT Next Year241.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y107.52%
FCF growth 3YN/A
FCF growth 5Y198.6%
OCF growth 1Y108.58%
OCF growth 3YN/A
OCF growth 5Y53.36%