READY CAPITAL CORP (RC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RC - US75574U1016 - REIT
2.47 USD
+0.14 (+6.01%)
2.49 USD
+0.02 (+0.81%)
RC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 68 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.
In the past year RC had a positive cash flow from operations.
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
The Return On Assets of RC (-3.93%) is worse than 83.82% of its industry peers.
Looking at the Return On Equity, with a value of -18.38%, RC is doing worse than 85.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.93% | ||
| ROE | -18.38% | ||
| 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
The Gross Margin of RC (17.50%) is worse than 73.53% of its industry peers.
RC's Gross Margin has declined in the last couple of years.
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 | 17.5% |
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
RC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.07, we must say that RC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RC (-0.07) is comparable to the rest of the industry.
RC has a debt to FCF ratio of 12.72. This is a negative value and a sign of low solvency as RC would need 12.72 years to pay back of all of its debts.
RC's Debt to FCF ratio of 12.72 is amongst the best of the industry. RC outperforms 95.59% of its industry peers.
RC has a Debt/Equity ratio of 3.49. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 3.49, RC is doing good in the industry, outperforming 69.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 12.72 | ||
| Altman-Z | -0.07 |
ROIC/WACCN/A
WACC6.57%
2.3 Liquidity
A Current Ratio of 1.03 indicates that RC should not have too much problems paying its short term obligations.
The Current ratio of RC (1.03) is better than 79.41% of its industry peers.
A Quick Ratio of 1.03 indicates that RC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.03, RC is doing good in the industry, outperforming 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
RC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -452.94%.
RC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.62% yearly.
RC shows a decrease in Revenue. In the last year, the revenue decreased by -8.20%.
Measured over the past years, RC shows a very strong growth in Revenue. The Revenue has been growing by 20.46% on average per year.
EPS 1Y (TTM)-452.94%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-235.71%
Revenue 1Y (TTM)-8.2%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-79.36%
3.2 Future
The Earnings Per Share is expected to decrease by -112.69% on average over the next years. This is quite bad
Based on estimates for the next years, RC will show a quite strong growth in Revenue. The Revenue will grow by 12.88% on average per year.
EPS Next Y-697.4%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
EPS Next 5YN/A
Revenue Next Year-47.33%
Revenue Next 2Y12.88%
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 decreasing.
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
RC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year RC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.82 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RC's earnings are expected to decrease with -112.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-91%
EPS Next 3Y-112.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.55%, RC is a good candidate for dividend investing.
The stock price of RC dropped by -38.56% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 12.91, RC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.41, RC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.55% |
5.2 History
The dividend of RC decreases each year by -4.21%.
RC 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
The earnings of RC are negative and hence is the payout ratio. RC will probably not be able to sustain this dividend level.
RC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-41.28%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
2.47
+0.14 (+6.01%)
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-9.19%
Ins Owners8.2%
Ins Owner Change0%
Market Cap400.46M
Revenue(TTM)770.37M
Net Income(TTM)-327.77M
Analysts46.67
Price Target3.95 (59.92%)
Short Float %17.43%
Short Ratio10.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.55% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-41.28%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-868.96%
Min EPS beat(2)-1051.17%
Max EPS beat(2)-686.74%
EPS beat(4)0
Avg EPS beat(4)-506.63%
Min EPS beat(4)-1051.17%
Max EPS beat(4)-114.25%
EPS beat(8)1
Avg EPS beat(8)-291.42%
EPS beat(12)1
Avg EPS beat(12)-199.76%
EPS beat(16)2
Avg EPS beat(16)-149.18%
Revenue beat(2)0
Avg Revenue beat(2)-72.44%
Min Revenue beat(2)-79.8%
Max Revenue beat(2)-65.08%
Revenue beat(4)0
Avg Revenue beat(4)-58.08%
Min Revenue beat(4)-79.8%
Max Revenue beat(4)-13.55%
Revenue beat(8)0
Avg Revenue beat(8)-42.22%
Revenue beat(12)1
Avg Revenue beat(12)-21.31%
Revenue beat(16)5
Avg Revenue beat(16)14.46%
PT rev (1m)-12.92%
PT rev (3m)-24.76%
EPS NQ rev (1m)-1016.67%
EPS NQ rev (3m)-256.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-233.84%
Revenue NQ rev (1m)-2.62%
Revenue NQ rev (3m)-24.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-40.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.52 | ||
| P/FCF | 0.82 | ||
| P/OCF | 0.82 | ||
| P/B | 0.22 | ||
| P/tB | 0.24 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.2
EYN/A
EPS(NY)-0.08
Fwd EYN/A
FCF(TTM)3.02
FCFY122.29%
OCF(TTM)3.03
OCFY122.56%
SpS4.75
BVpS11
TBVpS10.45
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.93% | ||
| ROE | -18.38% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.5% | ||
| FCFM | 63.57% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 12.72 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.14% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | -0.07 |
F-Score6
WACC6.57%
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)-452.94%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-235.71%
EPS Next Y-697.4%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.2%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-79.36%
Revenue Next Year-47.33%
Revenue Next 2Y12.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-97.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y72.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y64.87%
OCF growth 3YN/A
OCF growth 5YN/A
READY CAPITAL CORP / RC FAQ
What is the ChartMill fundamental rating of READY CAPITAL CORP (RC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to RC.
Can you provide the valuation status for READY CAPITAL CORP?
ChartMill assigns a valuation rating of 2 / 10 to READY CAPITAL CORP (RC). This can be considered as Overvalued.
What is the profitability of RC stock?
READY CAPITAL CORP (RC) has a profitability rating of 1 / 10.
What is the expected EPS growth for READY CAPITAL CORP (RC) stock?
The Earnings per Share (EPS) of READY CAPITAL CORP (RC) is expected to decline by -697.4% in the next year.
How sustainable is the dividend of READY CAPITAL CORP (RC) stock?
The dividend rating of READY CAPITAL CORP (RC) is 4 / 10 and the dividend payout ratio is -41.28%.