READY CAPITAL CORP (RC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RC - US75574U1016 - REIT
2.16 USD
+0.1 (+4.85%)
2.16 USD
0 (0%)
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. RC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
RC had negative earnings in the past year.
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
The Return On Assets of RC (-3.93%) is worse than 83.82% of its industry peers.
Looking at the Return On Equity, with a value of -18.38%, RC is doing worse than 85.29% of the companies in the same industry.
| 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
The Gross Margin of RC (17.50%) is worse than 73.53% 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 | 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.
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
Based on the Altman-Z score of -0.08, we must say that RC is in the distress zone and has some risk of bankruptcy.
RC has a Altman-Z score (-0.08) 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.
Looking at the Debt to FCF ratio, with a value of 12.72, RC belongs to the top of the industry, outperforming 95.59% of the companies in the same industry.
A Debt/Equity ratio of 3.49 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 3.49, RC is in the better half of the industry, outperforming 69.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 12.72 | ||
| Altman-Z | -0.08 |
ROIC/WACCN/A
WACC6.52%
2.3 Liquidity
A Current Ratio of 1.03 indicates that RC should not have too much problems paying its short term obligations.
The Current ratio of RC (1.03) is better than 79.41% of its industry peers.
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%.
The earnings per share for RC have been decreasing by -49.62% on average. This is quite bad
RC shows a decrease in Revenue. In the last year, the revenue decreased by -8.20%.
RC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.46% yearly.
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.
Based on estimates for the next years, RC will show a small growth in Revenue. The Revenue will grow by 4.19% on average per year.
EPS Next Y-1984.9%
EPS Next 2Y-242.79%
EPS Next 3Y-47.91%
EPS Next 5YN/A
Revenue Next Year-28.95%
Revenue Next 2Y-2.81%
Revenue Next 3Y4.19%
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
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
100.00% of the companies in the same industry are more expensive than RC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.72 | ||
| 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-242.79%
EPS Next 3Y-47.91%
5. Dividend
5.1 Amount
RC has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
The stock price of RC dropped by -37.21% 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.
With a Dividend Yield of 1.94, RC pays less dividend than the industry average, which is at 10.87. 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 1.90, RC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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
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-41.28%
EPS Next 2Y-242.79%
EPS Next 3Y-47.91%
2.16
+0.1 (+4.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners62.67%
Inst Owner Change0%
Ins Owners9.93%
Ins Owner Change0%
Market Cap350.20M
Revenue(TTM)770.37M
Net Income(TTM)-327.77M
Analysts47.5
Price Target3.76 (74.07%)
Short Float %19.63%
Short Ratio6.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-41.28%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-868.96%
Min EPS beat(2)-1051.17%
Max EPS beat(2)-686.74%
EPS beat(4)0
Avg EPS beat(4)-506.63%
Min EPS beat(4)-1051.17%
Max EPS beat(4)-114.25%
EPS beat(8)1
Avg EPS beat(8)-291.42%
EPS beat(12)1
Avg EPS beat(12)-199.76%
EPS beat(16)2
Avg EPS beat(16)-149.18%
Revenue beat(2)0
Avg Revenue beat(2)-72.44%
Min Revenue beat(2)-79.8%
Max Revenue beat(2)-65.08%
Revenue beat(4)0
Avg Revenue beat(4)-58.08%
Min Revenue beat(4)-79.8%
Max Revenue beat(4)-13.55%
Revenue beat(8)0
Avg Revenue beat(8)-42.22%
Revenue beat(12)1
Avg Revenue beat(12)-21.31%
Revenue beat(16)5
Avg Revenue beat(16)14.46%
PT rev (1m)0%
PT rev (3m)-17.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1508.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-187.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)50.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.45 | ||
| P/FCF | 0.72 | ||
| P/OCF | 0.71 | ||
| P/B | 0.2 | ||
| P/tB | 0.21 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.2
EYN/A
EPS(NY)-0.49
Fwd EYN/A
FCF(TTM)3.02
FCFY139.85%
OCF(TTM)3.03
OCFY140.15%
SpS4.75
BVpS11
TBVpS10.45
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.93% | ||
| ROE | -18.38% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.5% | ||
| FCFM | 63.57% |
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-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 12.72 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.14% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | -0.08 |
F-Score6
WACC6.52%
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)-452.94%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-235.71%
EPS Next Y-1984.9%
EPS Next 2Y-242.79%
EPS Next 3Y-47.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.2%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-79.36%
Revenue Next Year-28.95%
Revenue Next 2Y-2.81%
Revenue Next 3Y4.19%
Revenue Next 5YN/A
EBIT growth 1Y-97.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y72.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y64.87%
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.
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 4 / 10 and the dividend payout ratio is -41.28%.