Ready Capital Corporation Fundamental Analysis
Ready Capital Corporation (RC-PE) shows weak financial fundamentals with a PE ratio of -0.50, profit margin of -2.91%, and ROE of -31.38%. The company generates $0.2B 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 -254.0/100 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-PE's fundamental strength across five key dimensions:
Efficiency Score
WeakRC-PE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRC-PE trades at attractive valuation levels.
Growth Score
WeakRC-PE faces weak or negative growth trends.
Financial Health Score
ModerateRC-PE shows balanced financial health with some risks.
Profitability Score
WeakRC-PE struggles to sustain strong margins.
Key Financial Metrics
Is RC-PE Expensive or Cheap?
P/E Ratio
RC-PE trades at -0.50 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RC-PE's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Ready Capital Corporation at 0.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.27 times EBITDA. This signals the market has high growth expectations.
How Well Does RC-PE Make Money?
Net Profit Margin
For every $100 in sales, Ready Capital Corporation keeps $-2.91 as profit after all expenses.
Operating Margin
Core operations generate -2.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-31.38 in profit for every $100 of shareholder equity.
ROA
Ready Capital Corporation generates $-8.08 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 $876.02M, reflecting robust business health.
Free Cash Flow
Ready Capital Corporation generates strong free cash flow of $876.02M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.34 in free cash annually.
FCF Yield
RC-PE converts 3.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.004
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.31
vs 25 benchmark
ROA
Return on assets percentage
-0.08
vs 25 benchmark
ROCE
Return on capital employed
-0.08
vs 25 benchmark
How RC-PE Stacks Against Its Sector Peers
| Metric | RC-PE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.50 | 22.83 | Better (Cheaper) |
| ROE | -31.38% | 682.00% | Weak |
| Net Margin | -290.69% | 1961.00% | Weak |
| Debt/Equity | 3.43 | -17.11 (disorted) | Distorted |
| Current Ratio | 1.64 | 23.38 | Neutral |
| ROA | -8.08% | -757.00% (disorted) | Weak |
RC-PE 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