READY CAPITAL CORP - RC 6.2 07/30/26 (RCB) Stock Fundamental Analysis
NYSE:RCB - New York Stock Exchange, Inc. - US75574U4085 - Currency: USD
Overall RCB gets a fundamental rating of 3 out of 10. We evaluated RCB against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RCB has a bad profitability rating. Also its financial health evaluation is rather negative. RCB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RCB had positive earnings in the past year.
RCB had a positive operating cash flow in the past year.
In the past 5 years RCB has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: RCB reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of -1.13%, RCB is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
RCB has a Return On Equity of -5.66%. This is amonst the worse of the industry: RCB underperforms 84.38% of its industry peers.
| 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
In the last couple of years the Profit Margin of RCB has grown nicely.
RCB's Operating Margin has improved in the last couple of years.
RCB's Gross Margin of 1.54% is on the low side compared to the rest of the industry. RCB is outperformed by 87.50% of its industry peers.
RCB's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for RCB 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
RCB does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RCB has been increased compared to 1 year ago.
The number of shares outstanding for RCB has been increased compared to 5 years ago.
Compared to 1 year ago, RCB has an improved debt to assets ratio.
2.2 Solvency
RCB has an Altman-Z score of 0.28. This is a bad value and indicates that RCB is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RCB (0.28) is better than 76.56% of its industry peers.
The Debt to FCF ratio of RCB is 38.17, which is on the high side as it means it would take RCB, 38.17 years of fcf income to pay off all of its debts.
RCB has a Debt to FCF ratio of 38.17. This is in the better half of the industry: RCB outperforms 67.19% of its industry peers.
A Debt/Equity ratio of 3.65 is on the high side and indicates that RCB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.65, RCB is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.65 | ||
| Debt/FCF | 38.17 | ||
| Altman-Z | 0.28 |
ROIC/WACCN/A
WACC6.7%
2.3 Liquidity
RCB has a Current Ratio of 0.80. This is a bad value and indicates that RCB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RCB (0.80) is better than 76.56% of its industry peers.
A Quick Ratio of 0.80 indicates that RCB may have some problems paying its short term obligations.
RCB has a Quick ratio of 0.80. This is in the better half of the industry: RCB outperforms 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
RCB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.81%.
Measured over the past years, RCB shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.53% on average per year.
Looking at the last year, RCB shows a very negative growth in Revenue. The Revenue has decreased by -17.02% in the last year.
Measured over the past years, RCB shows a very strong growth in Revenue. The Revenue has been growing by 34.89% on average per year.
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
RCB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.34% yearly.
The Revenue is expected to grow by 1.46% on average over the next years.
EPS Next Y-54.87%
EPS Next 2Y-12.23%
EPS Next 3Y-5.34%
EPS Next 5YN/A
Revenue Next Year-14.84%
Revenue Next 2Y0.24%
Revenue Next 3Y1.46%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 70.91, the valuation of RCB can be described as expensive.
Based on the Price/Earnings ratio, RCB is valued a bit more expensive than the industry average as 67.19% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.28. RCB is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 26.30 indicates a quite expensive valuation of RCB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCB indicates a slightly more expensive valuation: RCB is more expensive than 71.88% of the companies listed in the same industry.
RCB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.91 | ||
| Fwd PE | 26.3 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as RCB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.93 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as RCB's earnings are expected to decrease with -5.34% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.23%
EPS Next 3Y-5.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.66%, RCB is a good candidate for dividend investing.
RCB's Dividend Yield is a higher than the industry average which is at 13.38.
RCB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.66% |
5.2 History
The dividend of RCB decreases each year by -1.08%.
RCB has been paying a dividend for over 5 years, so it has already some track record.
RCB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.08%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
RCB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of RCB 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-12.23%
EPS Next 3Y-5.34%
READY CAPITAL CORP - RC 6.2 07/30/26
NYSE:RCB (1/29/2025, 8:04:00 PM)
After market: 24.56 +0.45 (+1.87%)24.11
+0.02 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners58.07%
Inst Owner ChangeN/A
Ins Owners0.95%
Ins Owner ChangeN/A
Market Cap4.06B
Analysts72.94
Price Target29.49 (22.31%)
Short Float %0%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.66% |
Yearly Dividend1.52
Dividend Growth(5Y)-1.08%
DP-178.24%
Div Incr Years0
Div Non Decr Years3
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)-1.06%
PT rev (3m)-4.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-42.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-22.18%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)-3.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.91 | ||
| Fwd PE | 26.3 | ||
| P/S | 4.84 | ||
| P/FCF | 18.93 | ||
| P/OCF | 18.42 | ||
| P/B | 1.81 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.34
EY1.41%
EPS(NY)0.92
Fwd EY3.8%
FCF(TTM)1.27
FCFY5.28%
OCF(TTM)1.31
OCFY5.43%
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 | 0.28 |
F-Score4
WACC6.7%
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-54.87%
EPS Next 2Y-12.23%
EPS Next 3Y-5.34%
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 2Y0.24%
Revenue Next 3Y1.46%
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%