READY CAPITAL CORP (RC) Stock Fundamental Analysis
USA - NYSE:RC - US75574U1016 - REIT
2.99 USD
-0.05 (-1.64%)
3.0599 USD
+0.07 (+2.34%)
We assign a fundamental rating of 3 out of 10 to RC. RC was compared to 68 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. While showing a medium growth rate, RC is valued expensive at the moment.
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.
Of the past 5 years RC 4 years were profitable.
RC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RC has a worse Return On Assets (-3.42%) than 83.82% of its industry peers.
RC has a Return On Equity of -17.34%. This is amonst the worse of the industry: RC underperforms 83.82% 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
RC has a worse Gross Margin (8.53%) than 77.94% 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 | 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.
Compared to 1 year ago, RC has less shares outstanding
RC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RC has a worse debt to assets ratio.
2.2 Solvency
RC has an Altman-Z score of -0.08. This is a bad value and indicates that RC is not financially healthy and even has some risk of bankruptcy.
RC's Altman-Z score of -0.08 is in line compared to the rest of the industry. RC outperforms 54.41% of its industry peers.
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 Debt to FCF ratio of 25.14. This is amongst the best in the industry. RC outperforms 92.65% of its industry peers.
A Debt/Equity ratio of 3.89 is on the high side and indicates that RC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.89, RC is in the better half of the industry, outperforming 66.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.89 | ||
| Debt/FCF | 25.14 | ||
| Altman-Z | -0.08 |
ROIC/WACCN/A
WACC6.67%
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 has a better Current ratio (1.05) than 73.53% 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 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The earnings per share for RC have decreased strongly by -160.00% 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.
Looking at the last year, RC shows a decrease in Revenue. The Revenue has decreased by -6.28% in the last year.
The Revenue has been growing by 20.46% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to decrease by -112.69% on average over the next years. This is quite bad
The Revenue is expected to grow by 12.88% on average over the next years. This is quite good.
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 cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.73 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as RC's earnings are expected to decrease with -112.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-91%
EPS Next 3Y-112.69%
5. Dividend
5.1 Amount
RC has a Yearly Dividend Yield of 17.12%, which is a nice return.
The stock price of RC dropped by -26.54% 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.
RC's Dividend Yield is rather good when compared to the industry average which is at 13.19. RC pays more dividend than 89.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, RC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.12% |
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.
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-52.39%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
2.99
-0.05 (-1.64%)
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-1.2%
Ins Owners8.2%
Ins Owner Change0%
Market Cap491.35M
Revenue(TTM)752.30M
Net Income(TTM)-318363000
Analysts47.5
Price Target4.46 (49.16%)
Short Float %16.86%
Short Ratio11.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.12% |
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)-1.69%
PT rev (3m)-15.05%
EPS NQ rev (1m)10.77%
EPS NQ rev (3m)-228.89%
EPS NY rev (1m)8.81%
EPS NY rev (3m)-233.84%
Revenue NQ rev (1m)23.76%
Revenue NQ rev (3m)-11.21%
Revenue NY rev (1m)11.71%
Revenue NY rev (3m)-40.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.65 | ||
| P/FCF | 1.73 | ||
| P/OCF | 1.73 | ||
| P/B | 0.27 | ||
| P/tB | 0.28 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.54
EYN/A
EPS(NY)-0.08
Fwd EYN/A
FCF(TTM)1.73
FCFY57.79%
OCF(TTM)1.73
OCFY57.93%
SpS4.58
BVpS11.17
TBVpS10.64
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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
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-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 | -0.08 |
F-Score5
WACC6.67%
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-697.4%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.28%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-66.84%
Revenue Next Year-47.33%
Revenue Next 2Y12.88%
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
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 5 / 10 and the dividend payout ratio is -52.39%.