RF CAPITAL GROUP INC (RCG.CA) Stock Fundamental Analysis
TSX:RCG - Toronto Stock Exchange - CA74971G4016 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to RCG. RCG was compared to 82 industry peers in the Capital Markets industry. While RCG seems to be doing ok healthwise, there are quite some concerns on its profitability. RCG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RCG has reported negative net income.
In the past year RCG had a positive cash flow from operations.
RCG had negative earnings in 4 of the past 5 years.
In multiple years RCG reported negative operating cash flow during the last 5 years.
1.2 Ratios
RCG has a Return On Assets of -0.56%. This is in the lower half of the industry: RCG underperforms 61.90% of its industry peers.
With a Return On Equity value of -2.41%, RCG is not doing good in the industry: 65.48% of the companies in the same industry are doing better.
The Return On Invested Capital of RCG (3.95%) is better than 72.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RCG is significantly below the industry average of 8.96%.
The 3 year average ROIC (2.40%) for RCG is below the current ROIC(3.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.56% | ||
| ROE | -2.41% | ||
| ROIC | 3.95% |
ROA(3y)-0.94%
ROA(5y)-1.18%
ROE(3y)-4.79%
ROE(5y)-7.26%
ROIC(3y)2.4%
ROIC(5y)1.88%
1.3 Margins
Looking at the Operating Margin, with a value of 8.27%, RCG is doing worse than 64.29% of the companies in the same industry.
In the last couple of years the Operating Margin of RCG has declined.
Looking at the Gross Margin, with a value of 58.16%, RCG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
RCG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.27% | ||
| PM (TTM) | N/A | ||
| GM | 58.16% |
OM growth 3Y-4.56%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.54%
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, RCG has about the same amount of shares outstanding.
RCG has less shares outstanding than it did 5 years ago.
RCG has a worse debt/assets ratio than last year.
2.2 Solvency
RCG has an Altman-Z score of 0.21. This is a bad value and indicates that RCG is not financially healthy and even has some risk of bankruptcy.
RCG's Altman-Z score of 0.21 is on the low side compared to the rest of the industry. RCG is outperformed by 75.00% of its industry peers.
The Debt to FCF ratio of RCG is 12.23, which is on the high side as it means it would take RCG, 12.23 years of fcf income to pay off all of its debts.
RCG has a Debt to FCF ratio of 12.23. This is in the better half of the industry: RCG outperforms 71.43% of its industry peers.
RCG has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
RCG's Debt to Equity ratio of 0.49 is fine compared to the rest of the industry. RCG outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 12.23 | ||
| Altman-Z | 0.21 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
RCG has a Current Ratio of 1.15. This is a normal value and indicates that RCG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RCG (1.15) is better than 63.10% of its industry peers.
A Quick Ratio of 1.15 indicates that RCG should not have too much problems paying its short term obligations.
RCG's Quick ratio of 1.15 is fine compared to the rest of the industry. RCG outperforms 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
RCG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.50%, which is quite impressive.
RCG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.79%.
Measured over the past years, RCG shows a very strong growth in Revenue. The Revenue has been growing by 62.28% on average per year.
EPS 1Y (TTM)56.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-116.37%
Revenue 1Y (TTM)1.79%
Revenue growth 3Y61.02%
Revenue growth 5Y62.28%
Sales Q2Q%4.59%
3.2 Future
RCG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.40% yearly.
The Revenue is expected to grow by 7.49% on average over the next years.
EPS Next Y78.95%
EPS Next 2Y49.56%
EPS Next 3Y37.4%
EPS Next 5YN/A
Revenue Next Year4.6%
Revenue Next 2Y7.19%
Revenue Next 3Y7.49%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RCG. In the last year negative earnings were reported.
RCG is valuated quite expensively with a Price/Forward Earnings ratio of 31.75.
The rest of the industry has a similar Price/Forward Earnings ratio as RCG.
RCG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 31.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCG is valued cheaper than 96.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RCG is valued cheaply inside the industry as 86.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.03 | ||
| EV/EBITDA | 4.34 |
4.3 Compensation for Growth
The 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 RCG's earnings are expected to grow with 37.40% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y49.56%
EPS Next 3Y37.4%
5. Dividend
5.1 Amount
No dividends for RCG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:RCG (3/7/2025, 7:00:00 PM)
10.1
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners0.88%
Inst Owner ChangeN/A
Ins Owners0.55%
Ins Owner ChangeN/A
Market Cap158.87M
Analysts80
Price Target16.32 (61.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.28
Dividend Growth(5Y)0.83%
DP-54.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)-0.86%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 31.75 | ||
| P/S | 0.44 | ||
| P/FCF | 12.03 | ||
| P/OCF | 18.44 | ||
| P/B | 0.49 | ||
| P/tB | 15.53 | ||
| EV/EBITDA | 4.34 |
EPS(TTM)-0.52
EYN/A
EPS(NY)0.32
Fwd EY3.15%
FCF(TTM)0.84
FCFY8.31%
OCF(TTM)0.55
OCFY5.42%
SpS22.84
BVpS20.79
TBVpS0.65
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.56% | ||
| ROE | -2.41% | ||
| ROCE | 5.49% | ||
| ROIC | 3.95% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 16.31% | ||
| OM | 8.27% | ||
| PM (TTM) | N/A | ||
| GM | 58.16% | ||
| FCFM | 3.68% |
ROA(3y)-0.94%
ROA(5y)-1.18%
ROE(3y)-4.79%
ROE(5y)-7.26%
ROIC(3y)2.4%
ROIC(5y)1.88%
ROICexc(3y)5.94%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.34%
ROCE(5y)2.61%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-28.04%
ROICexc growth 5YN/A
OM growth 3Y-4.56%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.54%
GM growth 5YN/A
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 12.23 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.62 | ||
| Cash Conversion | 15.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 0.21 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)43.58%
Cap/Depr(5y)54.22%
Cap/Sales(3y)3.42%
Cap/Sales(5y)4.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)56.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-116.37%
EPS Next Y78.95%
EPS Next 2Y49.56%
EPS Next 3Y37.4%
EPS Next 5YN/A
Revenue 1Y (TTM)1.79%
Revenue growth 3Y61.02%
Revenue growth 5Y62.28%
Sales Q2Q%4.59%
Revenue Next Year4.6%
Revenue Next 2Y7.19%
Revenue Next 3Y7.49%
Revenue Next 5YN/A
EBIT growth 1Y12.28%
EBIT growth 3Y53.68%
EBIT growth 5YN/A
EBIT Next Year107.24%
EBIT Next 3Y45.31%
EBIT Next 5YN/A
FCF growth 1Y117.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y115.43%
OCF growth 3YN/A
OCF growth 5YN/A