READY CAPITAL CORP (RC) Stock Fundamental Analysis
USA - NYSE:RC - US75574U1016 - REIT
3.37 USD
-0.07 (-2.03%)
3.4 USD
+0.03 (+0.89%)
Taking everything into account, RC scores 3 out of 10 in our fundamental rating. RC was compared to 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. The financial health of RC is average, but there are quite some concerns on its profitability. RC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RC has reported negative net income.
RC had a positive operating cash flow in the past year.
RC had positive earnings in 4 of the past 5 years.
Of the past 5 years RC 4 years had a positive operating cash flow.
1.2 Ratios
RC has a Return On Assets of -3.42%. This is amonst the worse of the industry: RC underperforms 83.33% of its industry peers.
RC has a Return On Equity of -17.34%. This is amonst the worse of the industry: RC underperforms 80.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.42% | ||
| ROE | -17.34% | ||
| 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 8.53%, RC is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RC has declined.
The Profit Margin and Operating Margin are not available for RC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 8.53% |
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
RC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RC has been reduced compared to 1 year ago.
Compared to 5 years ago, RC has more shares outstanding
Compared to 1 year ago, RC has a worse debt to assets ratio.
2.2 Solvency
RC has an Altman-Z score of -0.07. This is a bad value and indicates that RC is not financially healthy and even has some risk of bankruptcy.
RC has a Altman-Z score (-0.07) which is comparable to the rest of the industry.
RC has a debt to FCF ratio of 25.14. This is a negative value and a sign of low solvency as RC would need 25.14 years to pay back of all of its debts.
RC has a better Debt to FCF ratio (25.14) than 90.91% of its industry peers.
RC has a Debt/Equity ratio of 3.89. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 3.89, RC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.89 | ||
| Debt/FCF | 25.14 | ||
| Altman-Z | -0.07 |
ROIC/WACCN/A
WACC6.72%
2.3 Liquidity
RC has a Current Ratio of 1.05. This is a normal value and indicates that RC is financially healthy and should not expect problems in meeting its short term obligations.
RC's Current ratio of 1.05 is fine compared to the rest of the industry. RC outperforms 75.76% of its industry peers.
A Quick Ratio of 1.05 indicates that RC should not have too much problems paying its short term obligations.
The Quick ratio of RC (1.05) is better than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
RC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -160.00%.
The earnings per share for RC have been decreasing by -49.62% on average. This is quite bad
Looking at the last year, RC shows a decrease in Revenue. The Revenue has decreased by -6.28% in the last year.
RC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.46% yearly.
EPS 1Y (TTM)-160%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-300%
Revenue 1Y (TTM)-6.28%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-66.84%
3.2 Future
Based on estimates for the next years, RC will show a very strong growth in Earnings Per Share. The EPS will grow by 87.50% on average per year.
RC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.94% yearly.
EPS Next Y-755.08%
EPS Next 2Y33.1%
EPS Next 3Y87.5%
EPS Next 5YN/A
Revenue Next Year-52.85%
Revenue Next 2Y12.94%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
RC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 38.04 indicates a quite expensive valuation of RC.
Based on the Price/Forward Earnings ratio, RC is valued more expensive than 84.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, RC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 38.04 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RC is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.95 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RC's earnings are expected to grow with 87.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.1%
EPS Next 3Y87.5%
5. Dividend
5.1 Amount
RC has a Yearly Dividend Yield of 14.45%, which is a nice return.
Compared to an average industry Dividend Yield of 12.06, RC pays a better dividend. On top of this RC pays more dividend than 80.30% of the companies listed in the same industry.
RC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.45% |
5.2 History
The dividend of RC decreases each year by -4.21%.
RC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-4.21%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-52.39%
EPS Next 2Y33.1%
EPS Next 3Y87.5%
3.37
-0.07 (-2.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners68.01%
Inst Owner Change-0.06%
Ins Owners8.2%
Ins Owner Change0%
Market Cap553.79M
Analysts47.5
Price Target4.54 (34.72%)
Short Float %17.42%
Short Ratio12.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.45% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-52.39%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-612.77%
Min EPS beat(2)-1051.17%
Max EPS beat(2)-174.36%
EPS beat(4)0
Avg EPS beat(4)-389.82%
Min EPS beat(4)-1051.17%
Max EPS beat(4)-114.25%
EPS beat(8)1
Avg EPS beat(8)-208.67%
EPS beat(12)1
Avg EPS beat(12)-142.88%
EPS beat(16)3
Avg EPS beat(16)-104%
Revenue beat(2)0
Avg Revenue beat(2)-69.49%
Min Revenue beat(2)-73.9%
Max Revenue beat(2)-65.08%
Revenue beat(4)0
Avg Revenue beat(4)-40.85%
Min Revenue beat(4)-73.9%
Max Revenue beat(4)-10.88%
Revenue beat(8)0
Avg Revenue beat(8)-36.57%
Revenue beat(12)2
Avg Revenue beat(12)-1.68%
Revenue beat(16)6
Avg Revenue beat(16)33.14%
PT rev (1m)0%
PT rev (3m)-11.88%
EPS NQ rev (1m)-59.18%
EPS NQ rev (3m)-240%
EPS NY rev (1m)-1372%
EPS NY rev (3m)-246.77%
Revenue NQ rev (1m)-23.84%
Revenue NQ rev (3m)-29.26%
Revenue NY rev (1m)-36.98%
Revenue NY rev (3m)-46.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 38.04 | ||
| P/S | 0.74 | ||
| P/FCF | 1.95 | ||
| P/OCF | 1.95 | ||
| P/B | 0.3 | ||
| P/tB | 0.32 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.54
EYN/A
EPS(NY)0.09
Fwd EY2.63%
FCF(TTM)1.73
FCFY51.28%
OCF(TTM)1.73
OCFY51.39%
SpS4.58
BVpS11.17
TBVpS10.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.42% | ||
| ROE | -17.34% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 8.53% | ||
| FCFM | 37.75% |
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 | 3.89 | ||
| Debt/FCF | 25.14 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.09% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | -0.07 |
F-Score5
WACC6.72%
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)-160%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-300%
EPS Next Y-755.08%
EPS Next 2Y33.1%
EPS Next 3Y87.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.28%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-66.84%
Revenue Next Year-52.85%
Revenue Next 2Y12.94%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-189.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-6.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.24%
OCF growth 3YN/A
OCF growth 5YN/A