Ready Capital Corporation 5.75%
Ready Capital Corporation 5.75% Fundamental Analysis
Ready Capital Corporation 5.75% (RCC) shows moderate financial fundamentals with a PE ratio of -0.56, profit margin of -2.91%, and ROE of -31.38%. The company generates $0.2B in annual revenue with strong year-over-year growth of 17.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -221.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RCC's fundamental strength across five key dimensions:
Efficiency Score
WeakRCC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRCC trades at attractive valuation levels.
Growth Score
ExcellentRCC delivers strong and consistent growth momentum.
Financial Health Score
ModerateRCC shows balanced financial health with some risks.
Profitability Score
WeakRCC struggles to sustain strong margins.
Key Financial Metrics
Is RCC Expensive or Cheap?
P/E Ratio
RCC trades at -0.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RCC's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Ready Capital Corporation 5.75% at 0.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.20 times EBITDA. This signals the market has high growth expectations.
How Well Does RCC Make Money?
Net Profit Margin
For every $100 in sales, Ready Capital Corporation 5.75% 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 5.75% 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 5.75% generates strong operating cash flow of $274.76M, reflecting robust business health.
Free Cash Flow
Ready Capital Corporation 5.75% generates strong free cash flow of $274.76M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.69 in free cash annually.
FCF Yield
RCC converts 97.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.63
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 RCC Stacks Against Its Sector Peers
| Metric | RCC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.56 | 22.93 | Better (Cheaper) |
| ROE | -31.38% | 673.00% | Weak |
| Net Margin | -290.69% | 1601500.00% | Weak |
| Debt/Equity | 3.43 | -17.11 (disorted) | Distorted |
| Current Ratio | 1.64 | 22.79 | Neutral |
| ROA | -8.08% | -939.00% (disorted) | Weak |
RCC 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 5.75%'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-57.59%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-266.61%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-196.46%
Industry Style: Income, Inflation Hedge, REIT
Declining