READY CAPITAL CORP (RC) Stock Fundamental Analysis
USA - NYSE:RC - US75574U1016 - REIT
4.19 USD
-0.06 (-1.41%)
4.19 USD
0 (0%)
Taking everything into account, RC scores 4 out of 10 in our fundamental rating. RC was compared to 67 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 is quite expensive at the moment. It does show a decent growth rate.
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.
Of the past 5 years RC 4 years were profitable.
Of the past 5 years RC 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.42%, RC is doing worse than 82.09% of the companies in the same industry.
With a Return On Equity value of -17.34%, RC is not doing good in the industry: 79.10% of the companies in the same industry are doing better.
| 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 76.12% 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.
The debt/assets ratio for RC is higher compared to a year ago.
2.2 Solvency
RC has an Altman-Z score of -0.06. This is a bad value and indicates that RC is not financially healthy and even has some risk of bankruptcy.
RC has a Altman-Z score (-0.06) which is comparable to the rest of the industry.
The Debt to FCF ratio of RC is 25.14, which is on the high side as it means it would take RC, 25.14 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 25.14, RC belongs to the best of the industry, outperforming 91.04% of the companies in the same industry.
RC has a Debt/Equity ratio of 3.89. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.89, RC is in the better half of the industry, outperforming 65.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.89 | ||
| Debt/FCF | 25.14 | ||
| Altman-Z | -0.06 |
ROIC/WACCN/A
WACC6.85%
2.3 Liquidity
A Current Ratio of 1.05 indicates that RC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.05, RC is in the better half of the industry, outperforming 74.63% of the companies in the same industry.
A Quick Ratio of 1.05 indicates that RC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.05, RC is doing good in the industry, outperforming 74.63% of the companies in the same industry.
| 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.
The earnings per share for RC have been decreasing by -49.62% on average. This is quite bad
The Revenue has decreased by -6.28% in the past year.
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)-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
RC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 111.61% yearly.
The Revenue is expected to grow by 15.86% on average over the next years. This is quite good.
EPS Next Y-48.5%
EPS Next 2Y102.98%
EPS Next 3Y111.61%
EPS Next 5YN/A
Revenue Next Year-12.57%
Revenue Next 2Y15.86%
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.
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.
The Price/Forward Earnings ratio is 20.34, which indicates a rather expensive current valuation of RC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RC indicates a slightly more expensive valuation: RC is more expensive than 73.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, RC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.34 |
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 | 2.42 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
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 2Y102.98%
EPS Next 3Y111.61%
5. Dividend
5.1 Amount
RC has a Yearly Dividend Yield of 11.74%, which is a nice return.
RC's Dividend Yield is a higher than the industry average which is at 11.13.
RC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.74% |
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.
DP-52.39%
EPS Next 2Y102.98%
EPS Next 3Y111.61%
4.19
-0.06 (-1.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners64.08%
Inst Owner Change1.62%
Ins Owners1.09%
Ins Owner Change0.18%
Market Cap688.54M
Analysts47.5
Price Target4.54 (8.35%)
Short Float %18.98%
Short Ratio14.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.74% |
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)-13.59%
PT rev (3m)-15.24%
EPS NQ rev (1m)-62.22%
EPS NQ rev (3m)-85.53%
EPS NY rev (1m)-88.46%
EPS NY rev (3m)-95.7%
Revenue NQ rev (1m)-15.74%
Revenue NQ rev (3m)-13.45%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.34 | ||
| P/S | 0.92 | ||
| P/FCF | 2.42 | ||
| P/OCF | 2.42 | ||
| P/B | 0.38 | ||
| P/tB | 0.39 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.54
EYN/A
EPS(NY)0.21
Fwd EY4.92%
FCF(TTM)1.73
FCFY41.24%
OCF(TTM)1.73
OCFY41.34%
SpS4.58
BVpS11.17
TBVpS10.64
PEG (NY)N/A
PEG (5Y)N/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
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 | 3.89 | ||
| 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 | -0.06 |
F-Score5
WACC6.85%
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-48.5%
EPS Next 2Y102.98%
EPS Next 3Y111.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.28%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-66.84%
Revenue Next Year-12.57%
Revenue Next 2Y15.86%
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