READY CAPITAL CORP (RC) Stock Fundamental Analysis
USA - NYSE:RC - US75574U1016 - REIT
2.52 USD
-0.13 (-4.91%)
2.55 USD
+0.03 (+1.19%)
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. RC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
RC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.93%, RC is doing worse than 86.76% of the companies in the same industry.
With a Return On Equity value of -18.38%, RC is not doing good in the industry: 89.71% 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.
The number of shares outstanding for RC has been reduced compared to 1 year ago.
Compared to 5 years ago, RC has more shares outstanding
RC has a worse debt/assets ratio than last year.
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.
The Debt to FCF ratio of RC is 12.72, which is on the high side as it means it would take RC, 12.72 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 12.72, RC belongs to the best of the industry, outperforming 95.59% of the companies in the same industry.
RC has a Debt/Equity ratio of 3.49. This is a high value indicating a heavy dependency on external financing.
RC has a better Debt to Equity ratio (3.49) 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
WACC6.59%
2.3 Liquidity
A Current Ratio of 1.03 indicates that RC should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.03, RC is doing good in the industry, outperforming 69.12% 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.
Looking at the Quick ratio, with a value of 1.03, RC is in the better half of the industry, outperforming 69.12% of the companies in the same industry.
| 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
RC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -112.69% yearly.
Based on estimates for the next years, RC will show a quite strong growth in Revenue. The Revenue will grow by 12.88% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RC. In the last year negative earnings were reported.
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
RC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RC is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.85 | ||
| 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 9.44%, which is a nice return.
In the last 3 months the price of RC has falen by -37.31%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
RC's Dividend Yield is slightly below the industry average, which is at 11.91.
RC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.44% |
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
RC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
RC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-41.28%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
2.52
-0.13 (-4.91%)
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-9.17%
Ins Owners8.2%
Ins Owner Change0%
Market Cap414.11M
Revenue(TTM)770.37M
Net Income(TTM)-327.77M
Analysts46.67
Price Target4.46 (76.98%)
Short Float %16.86%
Short Ratio11.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.44% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-41.28%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-1.69%
PT rev (3m)-15.05%
EPS NQ rev (1m)-66.67%
EPS NQ rev (3m)-116.67%
EPS NY rev (1m)8.81%
EPS NY rev (3m)-233.84%
Revenue NQ rev (1m)3.66%
Revenue NQ rev (3m)-9.3%
Revenue NY rev (1m)11.71%
Revenue NY rev (3m)-40.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.54 | ||
| P/FCF | 0.85 | ||
| P/OCF | 0.84 | ||
| P/B | 0.23 | ||
| P/tB | 0.24 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.2
EYN/A
EPS(NY)-0.08
Fwd EYN/A
FCF(TTM)2.98
FCFY118.26%
OCF(TTM)2.99
OCFY118.52%
SpS4.69
BVpS10.85
TBVpS10.31
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 | -0.07 |
F-Score6
WACC6.59%
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-697.4%
EPS Next 2Y-91%
EPS Next 3Y-112.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.2%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-79.36%
Revenue Next Year-47.33%
Revenue Next 2Y12.88%
Revenue Next 3YN/A
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.
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 4 / 10 and the dividend payout ratio is -41.28%.