READY CAPITAL CORP - RC 5 3/4 02/15/26 (RCC) Stock Fundamental Analysis
NYSE:RCC - New York Stock Exchange, Inc. - US75574U6064 - Currency: USD
RCC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of RCC have multiple concerns. While showing a medium growth rate, RCC is valued expensive at the moment.
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.
Each year in the past 5 years RCC has been profitable.
The reported operating cash flow has been mixed in the past 5 years: RCC reported negative operating cash flow in multiple years.
1.2 Ratios
RCC's Return On Assets of -1.13% is on the low side compared to the rest of the industry. RCC is outperformed by 75.00% of its industry peers.
Looking at the Return On Equity, with a value of -5.66%, RCC is doing worse than 85.94% of the companies in the same industry.
| 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 RCC has grown nicely.
RCC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 1.54%, RCC is doing worse than 89.06% of the companies in the same industry.
RCC's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for RCC 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
RCC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RCC has been increased compared to 1 year ago.
Compared to 5 years ago, RCC has more shares outstanding
RCC has a better debt/assets ratio than last year.
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.
The Altman-Z score of RCC (0.28) is better than 78.13% 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.
RCC has a Debt to FCF ratio of 38.17. This is in the better half of the industry: RCC outperforms 65.63% of its industry peers.
RCC has a Debt/Equity ratio of 3.65. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RCC (3.65) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.65 | ||
| Debt/FCF | 38.17 | ||
| Altman-Z | 0.28 |
ROIC/WACCN/A
WACC6.71%
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.
RCC's Current ratio of 0.80 is fine compared to the rest of the industry. RCC outperforms 75.00% of its industry peers.
A Quick Ratio of 0.80 indicates that RCC may have some problems paying its short term obligations.
The Quick ratio of RCC (0.80) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
RCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.81%.
The Earnings Per Share has been decreasing by -7.53% on average over the past years.
Looking at the last year, RCC shows a very negative growth in Revenue. The Revenue has decreased by -17.02% in the last year.
Measured over the past years, RCC 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
The Earnings Per Share is expected to decrease by -5.34% on average over the next years.
Based on estimates for the next years, RCC will show a small growth in Revenue. The Revenue will grow by 1.46% on average per year.
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
With a Price/Earnings ratio of 71.76, RCC can be considered very expensive at the moment.
RCC's Price/Earnings ratio is a bit more expensive when compared to the industry. RCC is more expensive than 68.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. RCC is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 26.62, RCC can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RCC is valued a bit more expensive than the industry average as 73.44% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 91.29. RCC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.76 | ||
| Fwd PE | 26.62 |
4.2 Price Multiples
RCC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.16 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as RCC'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
RCC has a Yearly Dividend Yield of 14.66%, which is a nice return.
Compared to an average industry Dividend Yield of 13.38, RCC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, RCC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.66% |
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
5.3 Sustainability
RCC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
RCC's earnings and Dividend Rate are 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 5 3/4 02/15/26
NYSE:RCC (1/29/2025, 8:04:01 PM)
24.4
-0.04 (-0.16%)
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 Cap4.11B
Analysts72.94
Price Target29.86 (22.38%)
Short Float %0.01%
Short Ratio0.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.66% |
Yearly Dividend1.52
Dividend Growth(5Y)-1.08%
DP-178.24%
Div Incr Years2
Div Non Decr Years3
Ex-Date
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)-0.25%
PT rev (3m)1.81%
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 | 71.76 | ||
| Fwd PE | 26.62 | ||
| P/S | 4.9 | ||
| P/FCF | 19.16 | ||
| P/OCF | 18.64 | ||
| P/B | 1.83 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.34
EY1.39%
EPS(NY)0.92
Fwd EY3.76%
FCF(TTM)1.27
FCFY5.22%
OCF(TTM)1.31
OCFY5.37%
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
WACC6.71%
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%