READY CAPITAL CORP (RC) Stock Fundamental Analysis
NYSE:RC - New York Stock Exchange, Inc. - US75574U1016 - REIT - Currency: USD
Overall RC gets a fundamental rating of 4 out of 10. We evaluated RC against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. RC is not valued too expensively and it also shows 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.
RC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.00%, RC is doing worse than 81.54% of the companies in the same industry.
With a Return On Equity value of -15.33%, RC is not doing good in the industry: 83.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3% | ||
| ROE | -15.33% | ||
| 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
RC's Gross Margin of 6.99% is on the low side compared to the rest of the industry. RC is outperformed by 90.77% of its industry peers.
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 | 6.99% |
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.
RC has less shares outstanding than it did 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 -0.03. This is a bad value and indicates that RC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.03, RC perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
RC has a debt to FCF ratio of 21.30. This is a negative value and a sign of low solvency as RC would need 21.30 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 21.30, RC belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
RC has a Debt/Equity ratio of 3.87. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.87, RC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.87 | ||
| Debt/FCF | 21.3 | ||
| Altman-Z | -0.03 |
ROIC/WACCN/A
WACC6.98%
2.3 Liquidity
RC has a Current Ratio of 1.09. This is a normal value and indicates that RC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.09, RC belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that RC should not have too much problems paying its short term obligations.
RC's Quick ratio of 1.09 is amongst the best of the industry. RC outperforms 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for RC have decreased strongly by -127.97% in the last year.
Measured over the past years, RC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -49.62% on average per year.
The Revenue for RC has decreased by -12.89% in the past year. This is quite bad
The Revenue has been growing by 20.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-127.97%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-131.03%
Revenue 1Y (TTM)-12.89%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-70.13%
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 111.61% on average per year.
RC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.44% yearly.
EPS Next Y346.34%
EPS Next 2Y188.54%
EPS Next 3Y111.61%
EPS Next 5YN/A
Revenue Next Year-11.63%
Revenue Next 2Y8.44%
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 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 negative for RC. In the last year negative earnings were reported.
RC is valuated reasonably with a Price/Forward Earnings ratio of 11.19.
The rest of the industry has a similar Price/Forward Earnings ratio as RC.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, RC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.19 |
4.2 Price Multiples
RC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RC is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.24 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RC's earnings are expected to grow with 111.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y188.54%
EPS Next 3Y111.61%
5. Dividend
5.1 Amount
RC has a Yearly Dividend Yield of 10.94%, which is a nice return.
Compared to an average industry Dividend Yield of 11.55, RC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, RC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.94% |
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
RC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-65.45%
EPS Next 2Y188.54%
EPS Next 3Y111.61%
4.66
+0.06 (+1.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners63.94%
Inst Owner Change5.07%
Ins Owners1.09%
Ins Owner Change4.71%
Market Cap794.58M
Analysts47.5
Price Target5.15 (10.52%)
Short Float %19.46%
Short Ratio14.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.94% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-65.45%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-144.31%
Min EPS beat(2)-174.36%
Max EPS beat(2)-114.25%
EPS beat(4)0
Avg EPS beat(4)-145.01%
Min EPS beat(4)-219.49%
Max EPS beat(4)-71.94%
EPS beat(8)1
Avg EPS beat(8)-78.3%
EPS beat(12)1
Avg EPS beat(12)-55.58%
EPS beat(16)4
Avg EPS beat(16)-37.52%
Revenue beat(2)0
Avg Revenue beat(2)-43.72%
Min Revenue beat(2)-73.9%
Max Revenue beat(2)-13.55%
Revenue beat(4)0
Avg Revenue beat(4)-31.99%
Min Revenue beat(4)-73.9%
Max Revenue beat(4)-10.88%
Revenue beat(8)0
Avg Revenue beat(8)-33.12%
Revenue beat(12)3
Avg Revenue beat(12)11.86%
Revenue beat(16)7
Avg Revenue beat(16)53.61%
PT rev (1m)-3.81%
PT rev (3m)-37.85%
EPS NQ rev (1m)-45.77%
EPS NQ rev (3m)-72.18%
EPS NY rev (1m)-62.75%
EPS NY rev (3m)-75.93%
Revenue NQ rev (1m)-9.16%
Revenue NQ rev (3m)-32.3%
Revenue NY rev (1m)-14.09%
Revenue NY rev (3m)-22.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.19 | ||
| P/S | 1.01 | ||
| P/FCF | 2.24 | ||
| P/OCF | 2.24 | ||
| P/B | 0.41 | ||
| P/tB | 0.43 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.33
EYN/A
EPS(NY)0.42
Fwd EY8.93%
FCF(TTM)2.08
FCFY44.56%
OCF(TTM)2.08
OCFY44.67%
SpS4.62
BVpS11.44
TBVpS10.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3% | ||
| ROE | -15.33% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 6.99% | ||
| FCFM | 44.95% |
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 | 3.87 | ||
| Debt/FCF | 21.3 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.1% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | -0.03 |
F-Score5
WACC6.98%
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)-127.97%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-131.03%
EPS Next Y346.34%
EPS Next 2Y188.54%
EPS Next 3Y111.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.89%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-70.13%
Revenue Next Year-11.63%
Revenue Next 2Y8.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-533.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y6.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.32%
OCF growth 3YN/A
OCF growth 5YN/A