Ready Capital Corporation
Ready Capital Corporation Fundamental Analysis
Ready Capital Corporation (RC-PC) shows moderate financial fundamentals with a PE ratio of -0.90, profit margin of 33.61%, and ROE of -16.85%. The company generates $-0.0B 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 -19.3/100 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
WeakRC-PC carries high financial risk with limited liquidity.
Profitability Score
ModerateRC-PC maintains healthy but balanced margins.
Key Financial Metrics
Is RC-PC Expensive or Cheap?
P/E Ratio
RC-PC trades at -0.90 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RC-PC's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values Ready Capital Corporation at 0.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.00 times EBITDA. This is generally considered low.
How Well Does RC-PC Make Money?
Net Profit Margin
For every $100 in sales, Ready Capital Corporation keeps $33.61 as profit after all expenses.
Operating Margin
Core operations generate 10.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-16.85 in profit for every $100 of shareholder equity.
ROA
Ready Capital Corporation generates $-3.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ready Capital Corporation generates limited operating cash flow of $358.62M, signaling weaker underlying cash strength.
Free Cash Flow
Ready Capital Corporation generates weak or negative free cash flow of $358.62M, restricting financial flexibility.
FCF Per Share
Each share generates $2.21 in free cash annually.
FCF Yield
RC-PC converts 1.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
-30.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.17
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How RC-PC Stacks Against Its Sector Peers
| Metric | RC-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.90 | 24.42 | Better (Cheaper) |
| ROE | -16.85% | 679.00% | Weak |
| Net Margin | 3361.49% | 4578.00% | Weak |
| Debt/Equity | 2.13 | -22.07 (disorted) | Distorted |
| Current Ratio | 0.00 | 14.99 | Weak Liquidity |
| ROA | -3.73% | -1370.00% (disorted) | 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