Ready Capital Corporation Notes -15.12.29 Fundamental Analysis
Ready Capital Corporation Notes -15.12.29 (RCD) shows moderate 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 strong year-over-year growth of 17.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -216.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RCD's fundamental strength across five key dimensions:
Efficiency Score
WeakRCD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRCD trades at attractive valuation levels.
Growth Score
ExcellentRCD delivers strong and consistent growth momentum.
Financial Health Score
ModerateRCD shows balanced financial health with some risks.
Profitability Score
WeakRCD struggles to sustain strong margins.
Key Financial Metrics
Is RCD Expensive or Cheap?
P/E Ratio
RCD trades at -0.50 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RCD's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Ready Capital Corporation Notes -15.12.29 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 RCD Make Money?
Net Profit Margin
For every $100 in sales, Ready Capital Corporation Notes -15.12.29 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 Notes -15.12.29 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 Notes -15.12.29 generates strong operating cash flow of $865.16M, reflecting robust business health.
Free Cash Flow
Ready Capital Corporation Notes -15.12.29 generates strong free cash flow of $865.16M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.34 in free cash annually.
FCF Yield
RCD 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 RCD Stacks Against Its Sector Peers
| Metric | RCD 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 |
RCD 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 Notes -15.12.29'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