READY CAPITAL CORP (RC) Stock Fundamental Analysis
NYSE:RC - New York Stock Exchange, Inc. - US75574U1016 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to RC. RC was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of RC have multiple concerns. RC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
RC had positive earnings in the past year.
In the past year RC had a positive cash flow from operations.
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 Return On Assets of -1.13%. This is in the lower half of the industry: RC underperforms 73.44% of its industry peers.
Looking at the Return On Equity, with a value of -5.66%, RC is doing worse than 84.38% of the companies in the same industry.
| 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
RC's Profit Margin has improved in the last couple of years.
RC's Operating Margin has improved in the last couple of years.
RC has a Gross Margin of 1.54%. This is amonst the worse of the industry: RC underperforms 84.38% 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 | 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.
The number of shares outstanding for RC has been increased compared to 5 years ago.
The debt/assets ratio for RC has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 0.08, RC is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
The Debt to FCF ratio of RC is 38.17, which is on the high side as it means it would take RC, 38.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RC (38.17) is better than 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 | 0.08 |
ROIC/WACCN/A
WACC6.74%
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's Current ratio of 0.80 is fine compared to the rest of the industry. RC outperforms 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 has a better Quick ratio (0.80) than 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%.
The Earnings Per Share has been decreasing by -7.53% on average over the past years.
Looking at the last year, RC shows a very negative growth in Revenue. The Revenue has decreased by -17.02% in the last year.
The Revenue has been growing by 34.89% on average over the past years. This is a very strong growth!
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
RC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.18% yearly.
The Revenue is expected to grow by 1.33% on average over the next years.
EPS Next Y-65.87%
EPS Next 2Y-11.74%
EPS Next 3Y-6.18%
EPS Next 5YN/A
Revenue Next Year-14.84%
Revenue Next 2Y0.17%
Revenue Next 3Y1.33%
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.
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 19.76, the valuation of RC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RC is on the same level as its industry peers.
RC is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.25, which indicates a rather cheap valuation of RC.
Based on the Price/Forward Earnings ratio, RC is valued cheaper than 84.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, RC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 7.25 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RC is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.28 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as RC's earnings are expected to decrease with -6.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.74%
EPS Next 3Y-6.18%
5. Dividend
5.1 Amount
RC has a Yearly Dividend Yield of 14.51%, which is a nice return.
RC's Dividend Yield is a higher than the industry average which is at 12.96.
Compared to an average S&P500 Dividend Yield of 2.27, RC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.51% |
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-11.74%
EPS Next 3Y-6.18%
6.72
-0.17 (-2.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners62.47%
Inst Owner Change-92.86%
Ins Owners1.06%
Ins Owner Change1.48%
Market Cap1.13B
Analysts49.41
Price Target8.29 (23.36%)
Short Float %13.98%
Short Ratio11.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.51% |
Yearly Dividend1.52
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)-5.8%
PT rev (3m)-9.72%
EPS NQ rev (1m)-6.54%
EPS NQ rev (3m)-18.22%
EPS NY rev (1m)-24.38%
EPS NY rev (3m)-55.86%
Revenue NQ rev (1m)7.82%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 7.25 | ||
| P/S | 1.35 | ||
| P/FCF | 5.28 | ||
| P/OCF | 5.13 | ||
| P/B | 0.51 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.34
EY5.06%
EPS(NY)0.93
Fwd EY13.79%
FCF(TTM)1.27
FCFY18.96%
OCF(TTM)1.31
OCFY19.48%
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 | 0.08 |
F-Score4
WACC6.74%
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-65.87%
EPS Next 2Y-11.74%
EPS Next 3Y-6.18%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.02%
Revenue growth 3Y23.79%
Revenue growth 5Y34.89%
Sales Q2Q%-13.59%
Revenue Next Year-14.84%
Revenue Next 2Y0.17%
Revenue Next 3Y1.33%
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%