READY CAPITAL CORP (RC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RC - US75574U1016 - REIT
2.54 USD
+0.02 (+0.79%)
2.59 USD
+0.05 (+1.97%)
RC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. The financial health of RC is average, but there are quite some concerns on its profitability. While showing a medium growth rate, RC is valued expensive at the moment.
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.
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.
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 has a Gross Margin of 17.50%. This is in the lower half of the industry: RC underperforms 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.
Compared to 5 years ago, RC has more shares outstanding
RC has a worse debt/assets ratio than last year.
2.2 Solvency
RC has an Altman-Z score of -0.07. This is a bad value and indicates that RC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RC (-0.07) 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.
The Debt to FCF ratio of RC (12.72) is better than 95.59% of its industry peers.
RC has a Debt/Equity ratio of 3.49. This is a high value indicating a heavy dependency on external financing.
RC's Debt to Equity ratio of 3.49 is fine compared to the rest of the industry. RC outperforms 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
WACC6.58%
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.
RC has a Quick Ratio of 1.03. This is a normal value and indicates that RC is financially healthy and should not expect problems in meeting 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 79.41% 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%.
Measured over the past years, RC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -49.62% on average per year.
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.
The Revenue is expected to grow by 12.88% on average over the next years. This is quite good.
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.
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.
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 cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.84 | ||
| 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
With a Yearly Dividend Yield of 9.55%, RC is a good candidate for dividend investing.
The stock price of RC dropped by -40.38% 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.
RC's Dividend Yield is slightly below the industry average, which is at 12.91.
Compared to an average S&P500 Dividend Yield of 2.41, RC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.55% |
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.
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-91%
EPS Next 3Y-112.69%
2.54
+0.02 (+0.79%)
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-9.19%
Ins Owners8.2%
Ins Owner Change0%
Market Cap411.81M
Revenue(TTM)770.37M
Net Income(TTM)-327.77M
Analysts46.67
Price Target3.95 (55.51%)
Short Float %17.43%
Short Ratio10.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.55% |
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)-12.92%
PT rev (3m)-24.76%
EPS NQ rev (1m)-1016.67%
EPS NQ rev (3m)-256.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-233.84%
Revenue NQ rev (1m)-2.62%
Revenue NQ rev (3m)-24.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-40.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.53 | ||
| P/FCF | 0.84 | ||
| 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)3.02
FCFY118.92%
OCF(TTM)3.03
OCFY119.18%
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 | -0.07 |
F-Score6
WACC6.58%
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%.