READY CAPITAL CORP - RC 5 3/4 02/15/26 (RCC) Stock Fundamental Analysis
NYSE:RCC - New York Stock Exchange, Inc. - US75574U6064 - Currency: USD
We assign a fundamental rating of 3 out of 10 to RCC. RCC was compared to 65 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
In the past year RCC was profitable.
RCC had a positive operating cash flow in the past year.
RCC had positive earnings in 4 of the past 5 years.
RCC 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 -4.47%, RCC is doing worse than 87.69% of the companies in the same industry.
RCC's Return On Equity of -24.53% is on the low side compared to the rest of the industry. RCC is outperformed by 96.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.47% | ||
| ROE | -24.53% | ||
| 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
RCC has a Gross Margin of 5.42%. This is amonst the worse of the industry: RCC underperforms 93.85% of its industry peers.
RCC's Gross Margin has declined in the last couple of years.
RCC 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 | 5.42% |
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
RCC does not have a ROIC to compare to the WACC, probably because it is not profitable.
RCC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RCC has more shares outstanding
Compared to 1 year ago, RCC has a worse debt to assets ratio.
2.2 Solvency
RCC has an Altman-Z score of 0.05. This is a bad value and indicates that RCC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.05, RCC is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
RCC has a debt to FCF ratio of 29.34. This is a negative value and a sign of low solvency as RCC would need 29.34 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 29.34, RCC is doing good in the industry, outperforming 70.77% of the companies in the same industry.
A Debt/Equity ratio of 3.97 is on the high side and indicates that RCC has dependencies on debt financing.
RCC's Debt to Equity ratio of 3.97 is in line compared to the rest of the industry. RCC outperforms 55.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.97 | ||
| Debt/FCF | 29.34 | ||
| Altman-Z | 0.05 |
ROIC/WACCN/A
WACC7.19%
2.3 Liquidity
RCC has a Current Ratio of 0.18. This is a bad value and indicates that RCC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.18, RCC is in line with its industry, outperforming 46.15% of the companies in the same industry.
RCC has a Quick Ratio of 0.18. 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 Quick ratio of RCC (0.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
RCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -95.80%.
The earnings per share for RCC have been decreasing by -49.62% on average. This is quite bad
Looking at the last year, RCC shows a very negative growth in Revenue. The Revenue has decreased by -21.55% in the last year.
Measured over the past years, RCC shows a very strong growth in Revenue. The Revenue has been growing by 20.46% on average per year.
EPS 1Y (TTM)-95.8%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-111.54%
Revenue 1Y (TTM)-21.55%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-4.73%
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 136.24% on average per year.
RCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y1194.85%
EPS Next 2Y274.67%
EPS Next 3Y136.24%
EPS Next 5YN/A
Revenue Next Year7.37%
Revenue Next 2Y6.57%
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.
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 490.20, the valuation of RCC can be described as expensive.
RCC's Price/Earnings ratio is a bit more expensive when compared to the industry. RCC is more expensive than 70.77% of the companies in the same industry.
RCC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.29.
RCC is valuated quite expensively with a Price/Forward Earnings ratio of 37.86.
Based on the Price/Forward Earnings ratio, RCC is valued expensively inside the industry as 81.54% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of RCC to the average of the S&P500 Index (21.08), we can say RCC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 490.2 | ||
| Fwd PE | 37.86 |
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 | 15.98 | ||
| EV/EBITDA | N/A |
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.
RCC's earnings are expected to grow with 136.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y274.67%
EPS Next 3Y136.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.39%, RCC is a good candidate for dividend investing.
With a Dividend Yield of 11.39, RCC pays less dividend than the industry average, which is at 15.09. 83.08% of the companies listed in the same industry pay a better dividend than RCC!
Compared to an average S&P500 Dividend Yield of 2.52, RCC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.39% |
5.2 History
The dividend of RCC decreases each year by -4.21%.
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)-4.21%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
The earnings of RCC are negative and hence is the payout ratio. RCC will probably not be able to sustain this dividend level.
DP-45.5%
EPS Next 2Y274.67%
EPS Next 3Y136.24%
READY CAPITAL CORP - RC 5 3/4 02/15/26
NYSE:RCC (4/17/2025, 8:04:01 PM)
24.51
-0.07 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners62.47%
Inst Owner ChangeN/A
Ins Owners1.06%
Ins Owner ChangeN/A
Market Cap4.21B
Analysts48.24
Price Target27.28 (11.3%)
Short Float %0%
Short Ratio0.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.39% |
Yearly Dividend1.23
Dividend Growth(5Y)-4.21%
DP-45.5%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-166.87%
Min EPS beat(2)-219.49%
Max EPS beat(2)-114.25%
EPS beat(4)1
Avg EPS beat(4)-99.57%
Min EPS beat(4)-219.49%
Max EPS beat(4)7.41%
EPS beat(8)1
Avg EPS beat(8)-60.1%
EPS beat(12)1
Avg EPS beat(12)-41.81%
EPS beat(16)4
Avg EPS beat(16)-26.95%
Revenue beat(2)0
Avg Revenue beat(2)-12.21%
Min Revenue beat(2)-13.55%
Max Revenue beat(2)-10.88%
Revenue beat(4)0
Avg Revenue beat(4)-24.08%
Min Revenue beat(4)-42.26%
Max Revenue beat(4)-10.88%
Revenue beat(8)0
Avg Revenue beat(8)-27.33%
Revenue beat(12)4
Avg Revenue beat(12)24.68%
Revenue beat(16)8
Avg Revenue beat(16)82.98%
PT rev (1m)-7.24%
PT rev (3m)-8.64%
EPS NQ rev (1m)-11.64%
EPS NQ rev (3m)-41.67%
EPS NY rev (1m)-30.16%
EPS NY rev (3m)-29.37%
Revenue NQ rev (1m)-2.96%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-5.75%
Revenue NY rev (3m)-7.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 490.2 | ||
| Fwd PE | 37.86 | ||
| P/S | 5.12 | ||
| P/FCF | 15.98 | ||
| P/OCF | 15.89 | ||
| P/B | 2.28 | ||
| P/tB | 2.39 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.05
EY0.2%
EPS(NY)0.65
Fwd EY2.64%
FCF(TTM)1.53
FCFY6.26%
OCF(TTM)1.54
OCFY6.29%
SpS4.79
BVpS10.75
TBVpS10.24
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.47% | ||
| ROE | -24.53% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 5.42% | ||
| FCFM | 32.04% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.97 | ||
| Debt/FCF | 29.34 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.17% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 0.05 |
F-Score4
WACC7.19%
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)-95.8%
EPS 3Y-71.84%
EPS 5Y-49.62%
EPS Q2Q%-111.54%
EPS Next Y1194.85%
EPS Next 2Y274.67%
EPS Next 3Y136.24%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.55%
Revenue growth 3Y14.39%
Revenue growth 5Y20.46%
Sales Q2Q%-4.73%
Revenue Next Year7.37%
Revenue Next 2Y6.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-493.99%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y526.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y385.89%
OCF growth 3YN/A
OCF growth 5YN/A