READY CAPITAL CORP (RC)
US75574U1016 - REIT
Taking everything into account, RC scores 3 out of 10 in our fundamental rating. RC was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RC has a bad profitability rating. Also its financial health evaluation is rather negative. RC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RC had positive earnings in the past year.
RC had a positive operating cash flow in the past year.
RC had positive earnings in each of the past 5 years.
In multiple years RC reported negative operating cash flow during the last 5 years.
1.2 Ratios
RC has a worse Return On Assets (-1.13%) than 71.88% of its industry peers.
The Return On Equity of RC (-5.66%) is worse than 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -5.66% | ||
| ROIC | N/A |
ROA(3y)1.86%
ROA(5y)1.57%
ROE(3y)11.15%
ROE(5y)9.51%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of RC has grown nicely.
In the last couple of years the Operating Margin of RC has grown nicely.
RC's Gross Margin of 1.54% is on the low side compared to the rest of the industry. RC is outperformed by 87.50% of its industry peers.
RC's Gross Margin has declined in the last couple of years.
RC 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 | 1.54% |
OM growth 3Y-8.89%
OM growth 5Y25.2%
PM growth 3Y57.46%
PM growth 5Y4.11%
GM growth 3Y-18.05%
GM growth 5Y-10.64%
2. Health
2.1 Basic Checks
RC does not have a ROIC to compare to the WACC, probably because it is not profitable.
RC has more shares outstanding than it did 1 year ago.
RC has more shares outstanding than it did 5 years ago.
RC has a better debt/assets ratio than last year.
2.2 Solvency
RC has an Altman-Z score of 0.09. 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 of 0.09. This is in the better half of the industry: RC outperforms 65.63% of its industry peers.
RC has a debt to FCF ratio of 38.17. This is a negative value and a sign of low solvency as RC would need 38.17 years to pay back of all of its debts.
RC's Debt to FCF ratio of 38.17 is fine compared to the rest of the industry. RC outperforms 67.19% of its industry peers.
A Debt/Equity ratio of 3.65 is on the high side and indicates that RC has dependencies on debt financing.
RC has a Debt to Equity ratio of 3.65. This is in the better half of the industry: RC outperforms 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.65 | ||
| Debt/FCF | 38.17 | ||
| Altman-Z | 0.09 |
ROIC/WACCN/A
WACC6.42%
2.3 Liquidity
RC has a Current Ratio of 0.80. This is a bad value and indicates that RC is not financially healthy enough and could expect problems in meeting its short term obligations.
RC has a better Current ratio (0.80) than 78.13% of its industry peers.
RC has a Quick Ratio of 0.80. This is a bad value and indicates that RC is not financially healthy enough and could expect problems in meeting its short term obligations.
RC's Quick ratio of 0.80 is fine compared to the rest of the industry. RC outperforms 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
RC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.81%.
Measured over the past years, RC shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.53% on average per year.
Looking at the last year, RC shows a very negative growth in Revenue. The Revenue has decreased by -17.02% in the last year.
Measured over the past years, RC shows a very strong growth in Revenue. The Revenue has been growing by 34.89% on average per year.
EPS 1Y (TTM)-74.81%
EPS 3Y-12.72%
EPS 5Y-7.53%
EPS Q2Q%-200%
Revenue 1Y (TTM)-17.02%
Revenue growth 3Y23.79%
Revenue growth 5Y34.89%
Sales Q2Q%-13.59%
3.2 Future
Based on estimates for the next years, RC will show a decrease in Earnings Per Share. The EPS will decrease by -5.34% on average per year.
The Revenue is expected to decrease by -0.98% on average over the next years.
EPS Next Y-54.87%
EPS Next 2Y-12.23%
EPS Next 3Y-5.34%
EPS Next 5YN/A
Revenue Next Year-15.38%
Revenue Next 2Y-1.94%
Revenue Next 3Y-0.98%
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.
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
Based on the Price/Earnings ratio of 20.41, the valuation of RC can be described as rather expensive.
RC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, RC is valued a bit cheaper.
RC is valuated cheaply with a Price/Forward Earnings ratio of 7.57.
Based on the Price/Forward Earnings ratio, RC is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RC to the average of the S&P500 Index (23.69), we can say RC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.41 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RC is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.45 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as RC's earnings are expected to decrease with -5.34% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.23%
EPS Next 3Y-5.34%
5. Dividend
5.1 Amount
RC has a Yearly Dividend Yield of 14.53%, which is a nice return.
RC's Dividend Yield is a higher than the industry average which is at 13.28.
RC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.53% |
5.2 History
The dividend of RC decreases each year by -1.08%.
RC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-1.08%
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.
The Dividend Rate of RC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-178.24%
EPS Next 2Y-12.23%
EPS Next 3Y-5.34%
READY CAPITAL CORP
NYSE:RC (1/3/2025, 8:04:00 PM)
After market: 6.94 0 (0%)6.94
+0.06 (+0.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners58.07%
Inst Owner Change5.52%
Ins Owners0.95%
Ins Owner Change0%
Market Cap1.17B
Analysts72.94
Price Target8.8 (26.8%)
Short Float %12.43%
Short Ratio11.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.53% |
Dividend Growth(5Y)-1.08%
DP-178.24%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-145.72%
Min EPS beat(2)-219.49%
Max EPS beat(2)-71.94%
EPS beat(4)1
Avg EPS beat(4)-76.22%
Min EPS beat(4)-219.49%
Max EPS beat(4)7.41%
EPS beat(8)1
Avg EPS beat(8)-46.32%
EPS beat(12)2
Avg EPS beat(12)-30.03%
EPS beat(16)5
Avg EPS beat(16)-18.43%
Revenue beat(2)0
Avg Revenue beat(2)-20.25%
Min Revenue beat(2)-29.62%
Max Revenue beat(2)-10.88%
Revenue beat(4)0
Avg Revenue beat(4)-26.36%
Min Revenue beat(4)-42.26%
Max Revenue beat(4)-10.88%
Revenue beat(8)1
Avg Revenue beat(8)-2.93%
Revenue beat(12)5
Avg Revenue beat(12)38.64%
Revenue beat(16)9
Avg Revenue beat(16)118.98%
PT rev (1m)-1.9%
PT rev (3m)-7.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.82%
EPS NY rev (1m)3.05%
EPS NY rev (3m)-42.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-22.18%
Revenue NY rev (1m)3.45%
Revenue NY rev (3m)-4.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.41 | ||
| Fwd PE | 7.57 | ||
| P/S | 1.39 | ||
| P/FCF | 5.45 | ||
| P/OCF | 5.3 | ||
| P/B | 0.52 | ||
| P/tB | 0.54 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.34
EY4.9%
EPS(NY)0.92
Fwd EY13.21%
FCF(TTM)1.27
FCFY18.35%
OCF(TTM)1.31
OCFY18.86%
SpS4.98
BVpS13.3
TBVpS12.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -5.66% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 1.54% | ||
| FCFM | 25.58% |
ROA(3y)1.86%
ROA(5y)1.57%
ROE(3y)11.15%
ROE(5y)9.51%
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)0.95%
ROCE(5y)0.95%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-8.89%
OM growth 5Y25.2%
PM growth 3Y57.46%
PM growth 5Y4.11%
GM growth 3Y-18.05%
GM growth 5Y-10.64%
F-Score4
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.65 | ||
| Debt/FCF | 38.17 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 0.09 |
F-Score4
WACC6.42%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-74.81%
EPS 3Y-12.72%
EPS 5Y-7.53%
EPS Q2Q%-200%
EPS Next Y-54.87%
EPS Next 2Y-12.23%
EPS Next 3Y-5.34%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.02%
Revenue growth 3Y23.79%
Revenue growth 5Y34.89%
Sales Q2Q%-13.59%
Revenue Next Year-15.38%
Revenue Next 2Y-1.94%
Revenue Next 3Y-0.98%
Revenue Next 5YN/A
EBIT growth 1Y-243.77%
EBIT growth 3Y12.79%
EBIT growth 5Y68.88%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y17.05%
FCF growth 3Y-15.03%
FCF growth 5Y-21.19%
OCF growth 1Y17.11%
OCF growth 3Y-7.49%
OCF growth 5Y-17.22%