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READY CAPITAL CORP - RC 5 3/4 02/15/26 (RCC) Stock Fundamental Analysis

NYSE:RCC - New York Stock Exchange, Inc. - US75574U6064 - Currency: USD

24.6  +0.01 (+0.04%)

Fundamental Rating

3

Overall RCC gets a fundamental rating of 3 out of 10. We evaluated RCC against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RCC has a bad profitability rating. Also its financial health evaluation is rather negative. RCC is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

RCC had positive earnings in the past year.
In the past year RCC had a positive cash flow from operations.
Of the past 5 years RCC 4 years were profitable.
In multiple years RCC reported negative operating cash flow during the last 5 years.
RCC Yearly Net Income VS EBIT VS OCF VS FCFRCC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M

1.2 Ratios

RCC has a worse Return On Assets (-1.13%) than 78.13% of its industry peers.
Looking at the Return On Equity, with a value of -5.66%, RCC is doing worse than 79.69% of the companies in the same industry.
Industry RankSector 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
RCC Yearly ROA, ROE, ROICRCC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

In the last couple of years the Profit Margin of RCC has grown nicely.
In the last couple of years the Operating Margin of RCC has grown nicely.
RCC has a worse Gross Margin (1.54%) than 89.06% of its industry peers.
In the last couple of years the Gross Margin of RCC has declined.
The Profit Margin and Operating Margin are not available for RCC so they could not be analyzed.
Industry RankSector 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%
RCC Yearly Profit, Operating, Gross MarginsRCC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

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3

2. Health

2.1 Basic Checks

RCC does not have a ROIC to compare to the WACC, probably because it is not profitable.
RCC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
RCC Yearly Shares OutstandingRCC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
RCC Yearly Total Debt VS Total AssetsRCC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

RCC has an Altman-Z score of 0.28. This is a bad value and indicates that RCC is not financially healthy and even has some risk of bankruptcy.
RCC has a Altman-Z score of 0.28. This is amongst the best in the industry. RCC outperforms 81.25% of its industry peers.
RCC has a debt to FCF ratio of 38.17. This is a negative value and a sign of low solvency as RCC would need 38.17 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 38.17, RCC is doing good in the industry, outperforming 60.94% of the companies in the same industry.
A Debt/Equity ratio of 3.65 is on the high side and indicates that RCC has dependencies on debt financing.
RCC's Debt to Equity ratio of 3.65 is in line compared to the rest of the industry. RCC outperforms 56.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.65
Debt/FCF 38.17
Altman-Z 0.28
ROIC/WACCN/A
WACC6.97%
RCC Yearly LT Debt VS Equity VS FCFRCC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B

2.3 Liquidity

RCC has a Current Ratio of 0.80. This is a bad value and indicates that RCC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RCC (0.80) is better than 75.00% of its industry peers.
A Quick Ratio of 0.80 indicates that RCC may have some problems paying its short term obligations.
RCC has a better Quick ratio (0.80) than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.8
RCC Yearly Current Assets VS Current LiabilitesRCC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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3

3. Growth

3.1 Past

RCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.95%.
The earnings per share for RCC have been decreasing by -27.43% on average. This is quite bad
EPS 1Y (TTM)-73.95%
EPS 3Y-48.27%
EPS 5Y-27.43%
EPS Q2Q%-11.54%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-4.74%

3.2 Future

Based on estimates for the next years, RCC will show a very strong growth in Earnings Per Share. The EPS will grow by 78.04% on average per year.
RCC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.54% yearly.
EPS Next Y199.03%
EPS Next 2Y78.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.82%
Revenue Next 2Y10.54%
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.
RCC Yearly Revenue VS EstimatesRCC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
RCC Yearly EPS VS EstimatesRCC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 79.35, RCC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RCC is valued a bit more expensive than the industry average as 67.19% of the companies are valued more cheaply.
RCC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.75.
A Price/Forward Earnings ratio of 26.54 indicates a quite expensive valuation of RCC.
75.00% of the companies in the same industry are cheaper than RCC, based on the Price/Forward Earnings ratio.
RCC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.44.
Industry RankSector Rank
PE 79.35
Fwd PE 26.54
RCC Price Earnings VS Forward Price EarningsRCC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

RCC's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 19.31
EV/EBITDA N/A
RCC Per share dataRCC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

RCC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RCC's earnings are expected to grow with 78.04% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y78.04%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 14.43%, RCC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.95, RCC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, RCC pays a better dividend.
Industry RankSector Rank
Dividend Yield 14.43%

5.2 History

The dividend of RCC decreases each year by -1.08%.
RCC has been paying a dividend for over 5 years, so it has already some track record.
RCC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.08%
Div Incr Years2
Div Non Decr Years3
RCC Yearly Dividends per shareRCC Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.5 1

5.3 Sustainability

RCC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-178.24%
EPS Next 2Y78.04%
EPS Next 3YN/A
RCC Yearly Income VS Free CF VS DividendRCC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M

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READY CAPITAL CORP - RC 5 3/4 02/15/26

NYSE:RCC (3/3/2025, 8:04:01 PM)

24.6

+0.01 (+0.04%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)03-03 2025-03-03/bmo
Earnings (Next)05-06 2025-05-06/amc
Inst Owners62.47%
Inst Owner ChangeN/A
Ins Owners1.06%
Ins Owner ChangeN/A
Market Cap4.15B
Analysts49.41
Price Target29.41 (19.55%)
Short Float %0.01%
Short Ratio0.1
Dividend
Industry RankSector Rank
Dividend Yield 14.43%
Yearly Dividend1.52
Dividend Growth(5Y)-1.08%
DP-178.24%
Div Incr Years2
Div Non Decr Years3
Ex-Date04-15 2025-04-15 (0.359375)
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)0%
PT rev (3m)-1.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-22.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.1%
Valuation
Industry RankSector Rank
PE 79.35
Fwd PE 26.54
P/S 4.94
P/FCF 19.31
P/OCF 18.79
P/B 1.85
P/tB 1.92
EV/EBITDA N/A
EPS(TTM)0.31
EY1.26%
EPS(NY)0.93
Fwd EY3.77%
FCF(TTM)1.27
FCFY5.18%
OCF(TTM)1.31
OCFY5.32%
SpS4.98
BVpS13.3
TBVpS12.79
PEG (NY)0.4
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC6.97%
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)-73.95%
EPS 3Y-48.27%
EPS 5Y-27.43%
EPS Q2Q%-11.54%
EPS Next Y199.03%
EPS Next 2Y78.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-4.74%
Revenue Next Year17.82%
Revenue Next 2Y10.54%
Revenue Next 3YN/A
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%