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

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

25.135  +0.05 (+0.18%)

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. RCD has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, RCD is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

RCD had positive earnings in the past year.
RCD had a positive operating cash flow in the past year.
RCD had positive earnings in each 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 Return On Equity of -5.66%. This is amonst the worse of the industry: RCD underperforms 87.50% 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.
RCD has a worse Gross Margin (1.54%) than 90.63% of its industry peers.
In the last couple of years the Gross Margin of RCD has declined.
RCD does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
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

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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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RCD has more shares outstanding
Compared to 1 year ago, RCD has an improved debt to assets ratio.
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

RCD has an Altman-Z score of 0.29. This is a bad value and indicates that RCD is not financially healthy and even has some risk of bankruptcy.
RCD has a Altman-Z score of 0.29. This is in the better half of the industry: RCD outperforms 79.69% of its industry peers.
The Debt to FCF ratio of RCD is 38.17, which is on the high side as it means it would take RCD, 38.17 years of fcf income to pay off 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 64.06% of its industry peers.
RCD has a Debt/Equity ratio of 3.65. This is a high value indicating a heavy dependency on external financing.
RCD has a Debt to Equity ratio of 3.65. This is in the better half of the industry: RCD outperforms 60.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.65
Debt/FCF 38.17
Altman-Z 0.29
ROIC/WACCN/A
WACC6.73%
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

A Current Ratio of 0.80 indicates that RCD may have some problems paying its short term obligations.
RCD has a better Current ratio (0.80) than 73.44% 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.
With a decent Quick ratio value of 0.80, RCD is doing good in the industry, outperforming 73.44% of the companies in the same industry.
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

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4

3. Growth

3.1 Past

RCD 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.
RCD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.02%.
Measured over the past years, RCD 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%-81.53%

3.2 Future

RCD is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.34% yearly.
Based on estimates for the next years, RCD 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

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.
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

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1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 73.93 indicates a quite expensive valuation of RCD.
Compared to the rest of the industry, the Price/Earnings ratio of RCD indicates a slightly more expensive valuation: RCD is more expensive than 70.31% of the companies listed in the same industry.
RCD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.28.
RCD is valuated quite expensively with a Price/Forward Earnings ratio of 27.42.
RCD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RCD is more expensive than 76.56% of the companies in the same industry.
RCD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
Industry RankSector Rank
PE 73.93
Fwd PE 27.42
RCD Price Earnings VS Forward Price EarningsRCD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as RCD.
Industry RankSector Rank
P/FCF 19.73
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 earnings are expected to decrease with -5.34% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.23%
EPS Next 3Y-5.34%

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5

5. Dividend

5.1 Amount

RCD has a Yearly Dividend Yield of 14.66%, which is a nice return.
Compared to an average industry Dividend Yield of 13.38, RCD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, RCD pays a better dividend.
Industry RankSector Rank
Dividend Yield 14.66%

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

RCD has negative earnings and hence a negative payout ratio. The dividend may be in danger.
RCD'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%
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

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READY CAPITAL CORP - RC 9 12/15/29

NYSE:RCD (1/29/2025, 8:04:00 PM)

25.135

+0.05 (+0.18%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)N/A N/A
Inst Owners58.07%
Inst Owner Change1.76%
Ins Owners0.95%
Ins Owner ChangeN/A
Market Cap4.24B
Analysts72.94
Price TargetN/A
Short Float %N/A
Short Ratio0.03
Dividend
Industry RankSector Rank
Dividend Yield 14.66%
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)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 73.93
Fwd PE 27.42
P/S 5.05
P/FCF 19.73
P/OCF 19.2
P/B 1.89
P/tB 1.96
EV/EBITDA N/A
EPS(TTM)0.34
EY1.35%
EPS(NY)0.92
Fwd EY3.65%
FCF(TTM)1.27
FCFY5.07%
OCF(TTM)1.31
OCFY5.21%
SpS4.98
BVpS13.3
TBVpS12.79
PEG (NY)N/A
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 0.29
F-Score4
WACC6.73%
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%-81.53%
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%