Logo image of RCD

READY CAPITAL CORP - RC 9 12/15/29 (RCD) Stock Fundamental Analysis

NYSE:RCD - New York Stock Exchange, Inc. - US75574U8383 - Currency: USD

24.25  -0.54 (-2.18%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to RCD. RCD was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of RCD have multiple concerns. RCD is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

Quickly go to:

2

1. Profitability

1.1 Basic Checks

RCD had positive earnings in the past year.
In the past year RCD had a positive cash flow from operations.
RCD had positive earnings in 4 of the past 5 years.
In multiple years RCD reported negative operating cash flow during the last 5 years.
RCD Yearly Net Income VS EBIT VS OCF VS FCFRCD 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

RCD has a Return On Assets of -1.13%. This is in the lower half of the industry: RCD underperforms 76.56% of its industry peers.
RCD has a worse Return On Equity (-5.66%) than 78.13% of its industry peers.
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
RCD Yearly ROA, ROE, ROICRCD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

RCD's Profit Margin has improved in the last couple of years.
RCD's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 1.54%, RCD is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RCD has declined.
The Profit Margin and Operating Margin are not available for RCD 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%
RCD Yearly Profit, Operating, Gross MarginsRCD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

More info and screens

3

2. Health

2.1 Basic Checks

RCD does not have a ROIC to compare to the WACC, probably because it is not profitable.
RCD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
RCD Yearly Shares OutstandingRCD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
RCD Yearly Total Debt VS Total AssetsRCD 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

Based on the Altman-Z score of 0.28, we must say that RCD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RCD (0.28) is better than 79.69% of its industry peers.
RCD has a debt to FCF ratio of 38.17. This is a negative value and a sign of low solvency as RCD would need 38.17 years to pay back of all of its debts.
RCD has a Debt to FCF ratio of 38.17. This is in the better half of the industry: RCD outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 3.65 is on the high side and indicates that RCD has dependencies on debt financing.
The Debt to Equity ratio of RCD (3.65) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 3.65
Debt/FCF 38.17
Altman-Z 0.28
ROIC/WACCN/A
WACC6.98%
RCD Yearly LT Debt VS Equity VS FCFRCD 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

RCD has a Current Ratio of 0.80. This is a bad value and indicates that RCD is not financially healthy enough and could expect problems in meeting its short term obligations.
RCD has a Current ratio of 0.80. This is in the better half of the industry: RCD outperforms 76.56% of its industry peers.
RCD has a Quick Ratio of 0.80. This is a bad value and indicates that RCD is not financially healthy enough and could expect problems in meeting its short term obligations.
RCD has a better Quick ratio (0.80) than 76.56% of its industry peers.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.8
RCD Yearly Current Assets VS Current LiabilitesRCD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

More info and screens

3

3. Growth

3.1 Past

The earnings per share for RCD have decreased strongly by -73.95% in the last year.
Measured over the past years, RCD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -27.43% on average per year.
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%-81.11%

3.2 Future

The Earnings Per Share is expected to grow by 78.04% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.54% on average over the next years. This is quite good.
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.
RCD Yearly Revenue VS EstimatesRCD 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
RCD Yearly EPS VS EstimatesRCD 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

More info and screens

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 78.23, which means the current valuation is very expensive for RCD.
Based on the Price/Earnings ratio, RCD is valued a bit more expensive than the industry average as 65.63% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of RCD to the average of the S&P500 Index (29.75), we can say RCD is valued expensively.
Based on the Price/Forward Earnings ratio of 26.16, the valuation of RCD can be described as expensive.
Based on the Price/Forward Earnings ratio, RCD is valued a bit more expensive than 73.44% of the companies in the same industry.
RCD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.44.
Industry RankSector Rank
PE 78.23
Fwd PE 26.16
RCD Price Earnings VS Forward Price EarningsRCD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

RCD's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 19.04
EV/EBITDA N/A
RCD Per share dataRCD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

RCD'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 RCD's earnings are expected to grow with 78.04% in the coming years.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y78.04%
EPS Next 3YN/A

More info and screens

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 14.43%, RCD is a good candidate for dividend investing.
RCD's Dividend Yield is a higher than the industry average which is at 12.95.
RCD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 14.43%

5.2 History

The dividend of RCD decreases each year by -1.08%.
RCD has been paying a dividend for at least 10 years, so it has a reliable track record.
RCD has decreased its dividend recently.
Dividend Growth(5Y)-1.08%
Div Incr Years1
Div Non Decr Years1
RCD Yearly Dividends per shareRCD Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

The earnings of RCD are negative and hence is the payout ratio. RCD will probably not be able to sustain this dividend level.
DP-178.24%
EPS Next 2Y78.04%
EPS Next 3YN/A
RCD Yearly Income VS Free CF VS DividendRCD 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

More info and screens

READY CAPITAL CORP - RC 9 12/15/29

NYSE:RCD (3/3/2025, 8:04:00 PM)

24.25

-0.54 (-2.18%)

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 Change20.17%
Ins Owners1.06%
Ins Owner ChangeN/A
Market Cap4.09B
Analysts49.41
Price Target29.65 (22.27%)
Short Float %0.07%
Short Ratio4.04
Dividend
Industry RankSector Rank
Dividend Yield 14.43%
Yearly Dividend1.52
Dividend Growth(5Y)-1.08%
DP-178.24%
Div Incr Years1
Div Non Decr Years1
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)2
Avg Revenue beat(4)67.72%
Min Revenue beat(4)-29.62%
Max Revenue beat(4)290.06%
Revenue beat(8)6
Avg Revenue beat(8)130.19%
Revenue beat(12)10
Avg Revenue beat(12)127.38%
Revenue beat(16)14
Avg Revenue beat(16)185.54%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 78.23
Fwd PE 26.16
P/S 4.87
P/FCF 19.04
P/OCF 18.52
P/B 1.82
P/tB 1.9
EV/EBITDA N/A
EPS(TTM)0.31
EY1.28%
EPS(NY)0.93
Fwd EY3.82%
FCF(TTM)1.27
FCFY5.25%
OCF(TTM)1.31
OCFY5.4%
SpS4.98
BVpS13.3
TBVpS12.79
PEG (NY)0.39
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
WACC6.98%
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%-81.11%
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%