RF CAPITAL GROUP INC (RCG.CA) Stock Fundamental Analysis
TSX:RCG - Toronto Stock Exchange - CA74971G4016 - Common Stock - Currency: CAD
RCG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RCG was profitable.
In the past year RCG had a positive cash flow from operations.
In the past 5 years RCG reported 4 times negative net income.
In multiple years RCG reported negative operating cash flow during the last 5 years.
1.2 Ratios
RCG has a Return On Assets of -0.48%. This is in the lower half of the industry: RCG underperforms 73.17% of its industry peers.
With a Return On Equity value of -2.08%, RCG is not doing good in the industry: 69.51% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 2.95%, RCG perfoms like the industry average, outperforming 40.24% of the companies in the same industry.
RCG had an Average Return On Invested Capital over the past 3 years of 3.08%. This is below the industry average of 7.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -2.08% | ||
| ROIC | 2.95% |
ROA(3y)-0.65%
ROA(5y)-0.38%
ROE(3y)-2.89%
ROE(5y)-1.81%
ROIC(3y)3.08%
ROIC(5y)2.14%
1.3 Margins
RCG has a Operating Margin of 5.75%. This is in the lower half of the industry: RCG underperforms 69.51% of its industry peers.
RCG's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 56.87%, RCG is doing good in the industry, outperforming 71.95% of the companies in the same industry.
RCG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.75% | ||
| PM (TTM) | N/A | ||
| GM | 56.87% |
OM growth 3Y56.36%
OM growth 5Y-15.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.65%
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, RCG has more shares outstanding
The number of shares outstanding for RCG has been reduced compared to 5 years ago.
The debt/assets ratio for RCG has been reduced compared to a year ago.
2.2 Solvency
RCG has an Altman-Z score of 0.20. This is a bad value and indicates that RCG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.20, RCG is in line with its industry, outperforming 51.22% of the companies in the same industry.
The Debt to FCF ratio of RCG is 4.18, which is a neutral value as it means it would take RCG, 4.18 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RCG (4.18) is better than 67.07% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that RCG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.49, RCG is in line with its industry, outperforming 52.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 0.2 |
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.
RCG's Current ratio of 1.15 is in line compared to the rest of the industry. RCG outperforms 57.32% 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 has a Quick ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.53% over the past year.
Looking at the last year, RCG shows a small growth in Revenue. The Revenue has grown by 7.54% in the last year.
The Revenue has been growing by 58.60% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)49.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1900%
Revenue 1Y (TTM)7.54%
Revenue growth 3Y3.98%
Revenue growth 5Y58.6%
Sales Q2Q%11.23%
3.2 Future
RCG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.26% yearly.
RCG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.07% yearly.
EPS Next Y-36.37%
EPS Next 2Y30.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.14%
Revenue Next 2Y7.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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 30.29, RCG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RCG indicates a slightly more expensive valuation: RCG is more expensive than 60.98% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RCG to the average of the S&P500 Index (27.30), we can say RCG is valued inline with the index average.
With a Price/Forward Earnings ratio of 11.07, the valuation of RCG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RCG is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. RCG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.29 | ||
| Fwd PE | 11.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCG is valued cheaper than 95.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RCG is valued cheaper than 96.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.88 | ||
| EV/EBITDA | 4.66 |
4.3 Compensation for Growth
RCG's earnings are expected to grow with 30.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RCG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:RCG (7/11/2025, 7:00:00 PM)
9.39
+0.1 (+1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners0.54%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap147.61M
Analysts76.67
Price Target13.64 (45.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.28
Dividend Growth(5Y)11.18%
DP-63.97%
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)2
Avg Revenue beat(2)1.11%
Min Revenue beat(2)0.98%
Max Revenue beat(2)1.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)1.24%
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)-16.41%
PT rev (3m)-17.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)18.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.29 | ||
| Fwd PE | 11.07 | ||
| P/S | 0.39 | ||
| P/FCF | 3.88 | ||
| P/OCF | 3.6 | ||
| P/B | 0.46 | ||
| P/tB | 14.39 | ||
| EV/EBITDA | 4.66 |
EPS(TTM)0.31
EY3.3%
EPS(NY)0.85
Fwd EY9.04%
FCF(TTM)2.42
FCFY25.79%
OCF(TTM)2.61
OCFY27.76%
SpS24.13
BVpS20.47
TBVpS0.65
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -2.08% | ||
| ROCE | 4.09% | ||
| ROIC | 2.95% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 13.15% | ||
| OM | 5.75% | ||
| PM (TTM) | N/A | ||
| GM | 56.87% | ||
| FCFM | 10.04% |
ROA(3y)-0.65%
ROA(5y)-0.38%
ROE(3y)-2.89%
ROE(5y)-1.81%
ROIC(3y)3.08%
ROIC(5y)2.14%
ROICexc(3y)5.14%
ROICexc(5y)6.44%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)4.28%
ROCE(5y)2.98%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-17.26%
ROICexc growth 5YN/A
OM growth 3Y56.36%
OM growth 5Y-15.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.65%
GM growth 5YN/A
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 11.58% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 2.01 | ||
| Cash Conversion | 87.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 0.2 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)35.57%
Cap/Depr(5y)34.23%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)49.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1900%
EPS Next Y-36.37%
EPS Next 2Y30.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.54%
Revenue growth 3Y3.98%
Revenue growth 5Y58.6%
Sales Q2Q%11.23%
Revenue Next Year6.14%
Revenue Next 2Y7.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-32.86%
EBIT growth 3Y62.59%
EBIT growth 5Y34.21%
EBIT Next Year188.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y107.52%
FCF growth 3YN/A
FCF growth 5Y198.6%
OCF growth 1Y108.58%
OCF growth 3YN/A
OCF growth 5Y53.36%