Ready Capital Corporation
Ready Capital Corporation Fundamental Analysis
Ready Capital Corporation (RC-PC) shows weak financial fundamentals with a PE ratio of -1.24, profit margin of -45.83%, and ROE of -12.90%. The company generates $0.5B in annual revenue with weak year-over-year growth of -20.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -60.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RC-PC's fundamental strength across five key dimensions:
Efficiency Score
WeakRC-PC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRC-PC trades at attractive valuation levels.
Growth Score
WeakRC-PC faces weak or negative growth trends.
Financial Health Score
ModerateRC-PC shows balanced financial health with some risks.
Profitability Score
WeakRC-PC struggles to sustain strong margins.
Key Financial Metrics
Is RC-PC Expensive or Cheap?
P/E Ratio
RC-PC trades at -1.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RC-PC's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Ready Capital Corporation at 0.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 34.75 times EBITDA. This signals the market has high growth expectations.
How Well Does RC-PC Make Money?
Net Profit Margin
For every $100 in sales, Ready Capital Corporation keeps $-45.83 as profit after all expenses.
Operating Margin
Core operations generate -50.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-12.90 in profit for every $100 of shareholder equity.
ROA
Ready Capital Corporation generates $-2.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ready Capital Corporation generates strong operating cash flow of $304.73M, reflecting robust business health.
Free Cash Flow
Ready Capital Corporation generates strong free cash flow of $304.73M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.87 in free cash annually.
FCF Yield
RC-PC converts 1.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.13
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.03
vs 25 benchmark
How RC-PC Stacks Against Its Sector Peers
| Metric | RC-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.24 | 23.18 | Better (Cheaper) |
| ROE | -12.90% | 709.00% | Weak |
| Net Margin | -45.83% | -21241.00% (disorted) | Weak |
| Debt/Equity | 3.78 | -21.97 (disorted) | Distorted |
| Current Ratio | 1.04 | 26.77 | Neutral |
| ROA | -2.95% | 176.00% | Weak |
RC-PC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ready Capital Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.22%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-248.36%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
230.30%
Industry Style: Income, Inflation Hedge, REIT
High Growth