READY CAPITAL CORP (RC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:RC • US75574U1016
2.11 USD
-0.1 (-4.52%)
Last: Jan 30, 2026, 12:53 PM
Overall RC gets a fundamental rating of 3 out of 10. We evaluated RC against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While RC seems to be doing ok healthwise, there are quite some concerns on its profitability. RC does not seem to be growing, but still is valued expensively.
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
- With a Return On Assets value of -3.93%, RC is not doing good in the industry: 83.82% of the companies in the same industry are doing better.
- With a Return On Equity value of -18.38%, RC is not doing good in the industry: 85.29% of the companies in the same industry are doing better.
| 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
- RC's Gross Margin of 17.50% is on the low side compared to the rest of the industry. RC is outperformed by 73.53% of its industry peers.
- In the last couple of years the Gross Margin of RC has declined.
- 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 | 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.
- RC has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for RC has been increased compared to 5 years ago.
- The debt/assets ratio for RC is higher compared to a year ago.
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.
- 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 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 has a better Debt to FCF ratio (12.72) than 95.59% of its industry peers.
- A Debt/Equity ratio of 3.49 is on the high side and indicates that RC has dependencies on debt financing.
- The Debt to Equity ratio of RC (3.49) is better than 69.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 12.72 | ||
| Altman-Z | -0.07 |
ROIC/WACCN/A
WACC6.53%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that RC should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.03, RC is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
- A Quick Ratio of 1.03 indicates that RC should not have too much problems paying its short term obligations.
- RC has a Quick ratio of 1.03. This is in the better half of the industry: RC outperforms 79.41% of its industry peers.
| 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
- Based on estimates for the next years, RC will show a very negative growth in Earnings Per Share. The EPS will decrease by -47.91% on average per year.
- RC is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -19.66% yearly.
EPS Next Y-2151.76%
EPS Next 2Y-255.09%
EPS Next 3Y-47.91%
EPS Next 5YN/A
Revenue Next Year-72.17%
Revenue Next 2Y-44.33%
Revenue Next 3Y-19.66%
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 stable.
- 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
- RC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for RC. No positive earnings are expected for the next year.
| 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 | 0.7 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- RC's earnings are expected to decrease with -47.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-255.09%
EPS Next 3Y-47.91%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.75%, RC has a reasonable but not impressive dividend return.
- The stock price of RC dropped by -24.57% 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 11.60, RC's dividend is way lower than its industry peers. On top of this 97.06% of the companies listed in the same industry pay a better dividend than RC!
- Compared to an average S&P500 Dividend Yield of 1.82, RC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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
- 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-255.09%
EPS Next 3Y-47.91%
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.
What is the valuation status for RC stock?
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.
How sustainable is the dividend of READY CAPITAL CORP (RC) stock?
The dividend rating of READY CAPITAL CORP (RC) is 2 / 10 and the dividend payout ratio is -41.28%.