RF CAPITAL GROUP INC (RCG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RCG - CA74971G4016 - Common Stock
19.99 CAD
0 (0%)
Overall RCG gets a fundamental rating of 3 out of 10. We evaluated RCG against 78 industry peers in the Capital Markets industry. While RCG seems to be doing ok healthwise, there are quite some concerns on its profitability. RCG has a expensive valuation and it also scores bad on growth.
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.
- RCG had negative earnings in 4 of the past 5 years.
- In multiple years RCG reported negative operating cash flow during the last 5 years.
1.2 Ratios
- RCG's Return On Assets of -0.84% is on the low side compared to the rest of the industry. RCG is outperformed by 68.24% of its industry peers.
- RCG has a Return On Equity of -3.62%. This is in the lower half of the industry: RCG underperforms 70.59% of its industry peers.
- RCG has a worse Return On Invested Capital (1.52%) than 62.35% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RCG is significantly below the industry average of 10.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.84% | ||
| ROE | -3.62% | ||
| ROIC | 1.52% |
ROA(3y)-0.65%
ROA(5y)-0.38%
ROE(3y)-2.89%
ROE(5y)-1.81%
ROIC(3y)1.58%
ROIC(5y)1.24%
1.3 Margins
- Looking at the Operating Margin, with a value of 2.97%, RCG is doing worse than 69.41% of the companies in the same industry.
- In the last couple of years the Operating Margin of RCG has declined.
- RCG has a better Gross Margin (56.04%) than 74.12% of its industry peers.
- In the last couple of years the Gross Margin of RCG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.97% | ||
| PM (TTM) | N/A | ||
| GM | 56.04% |
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
- The number of shares outstanding for RCG has been increased compared to 1 year ago.
- The number of shares outstanding for RCG has been reduced compared to 5 years ago.
- RCG has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.26, we must say that RCG is in the distress zone and has some risk of bankruptcy.
- RCG has a worse Altman-Z score (0.26) than 72.94% of its industry peers.
- RCG has a debt to FCF ratio of 4.31. This is a neutral value as RCG would need 4.31 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 4.31, RCG is doing good in the industry, outperforming 63.53% of the companies in the same industry.
- A Debt/Equity ratio of 0.50 indicates that RCG is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.50, RCG is in line with its industry, outperforming 50.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 0.26 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- RCG has a Current Ratio of 1.15. This is a normal value and indicates that RCG is financially healthy and should not expect problems in meeting its short term obligations.
- RCG's Current ratio of 1.15 is in line compared to the rest of the industry. RCG outperforms 56.47% of its industry peers.
- RCG has a Quick Ratio of 1.15. This is a normal value and indicates that RCG is financially healthy and should not expect problems in meeting its short term obligations.
- RCG has a Quick ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
- RCG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -86.61%.
- RCG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.26%.
- RCG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 58.60% yearly.
EPS 1Y (TTM)-86.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-93.08%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y3.98%
Revenue growth 5Y58.6%
Sales Q2Q%-2.14%
3.2 Future
- Based on estimates for the next years, RCG will show a very negative growth in Earnings Per Share. The EPS will decrease by -39.70% on average per year.
- RCG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.74% yearly.
EPS Next Y-184.84%
EPS Next 2Y-39.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.57%
Revenue Next 2Y7.74%
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 285.57, which means the current valuation is very expensive for RCG.
- Based on the Price/Earnings ratio, RCG is valued a bit more expensive than 69.41% of the companies in the same industry.
- RCG is valuated expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 109.96, RCG can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RCG is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of RCG to the average of the S&P500 Index (25.98), we can say RCG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 285.57 | ||
| Fwd PE | 109.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RCG is valued a bit cheaper than the industry average as 61.18% of the companies are valued more expensively.
- RCG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RCG is cheaper than 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
- A cheap valuation may be justified as RCG's earnings are expected to decrease with -39.70% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-39.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- RCG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RF CAPITAL GROUP INC / RCG.CA FAQ
Can you provide the ChartMill fundamental rating for RF CAPITAL GROUP INC?
ChartMill assigns a fundamental rating of 3 / 10 to RCG.CA.
Can you provide the valuation status for RF CAPITAL GROUP INC?
ChartMill assigns a valuation rating of 2 / 10 to RF CAPITAL GROUP INC (RCG.CA). This can be considered as Overvalued.
How profitable is RF CAPITAL GROUP INC (RCG.CA) stock?
RF CAPITAL GROUP INC (RCG.CA) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for RCG stock?
The Earnings per Share (EPS) of RF CAPITAL GROUP INC (RCG.CA) is expected to decline by -184.84% in the next year.
Can you provide the dividend sustainability for RCG stock?
The dividend rating of RF CAPITAL GROUP INC (RCG.CA) is 0 / 10 and the dividend payout ratio is -37.22%.