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Ready Capital

MUN:0SZ
Snowflake Description

Undervalued with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0SZ
MUN
$486M
Imp Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

Ready Capital Corporation operates as a real estate finance company in the United States. The last earnings update was 37 days ago. More info.


Add to Portfolio Compare Print
0SZ Share Price and Events
7 Day Returns
-0.4%
MUN:0SZ
-0.2%
Global Mortgage REITs
2.4%
DE Market
1 Year Returns
-
MUN:0SZ
1.4%
Global Mortgage REITs
-6.2%
DE Market
0SZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ready Capital (0SZ) -0.4% -2.3% 1.5% - - -
Global Mortgage REITs -0.2% -0.4% 1.5% 1.4% 11.2% -7.6%
DE Market 2.4% 3% 7.4% -6.2% 9.6% 14.1%
1 Year Return vs Industry and Market
  • No trading data on 0SZ.
  • No trading data on 0SZ.
Price Volatility
0SZ
Industry
5yr Volatility vs Market

Value

 Is Ready Capital undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ready Capital to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ready Capital.

MUN:0SZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $17.04 * 10.6%
$1.80
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $17.04
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for MUN:0SZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Mortgage REITs Unlevered Beta Simply Wall St/ S&P Global 0.29
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.293 (1 + (1- 21%) (492.52%))
1.291
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.291 * 5.96%)
7.92%

Discounted Cash Flow Calculation for MUN:0SZ using Excess Returns Model Model

The calculations below outline how an intrinsic value for Ready Capital is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

MUN:0SZ Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.6% – 7.92%) * $17.04)
$0.45
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.45 / (7.92% - 0.23%)
$5.90
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $17.04 + $5.90
$22.94
MUN:0SZ Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in MUN:0SZ represents 0.88585x of NYSE:RC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88585x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 22.94 x 0.88585
€20.32
Value per share (EUR) From above. €20.32
Current discount Discount to share price of €12.96
= -1 x (€12.96 - €20.32) / €20.32
36.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ready Capital is available for.
Intrinsic value
36%
Share price is €12.96 vs Future cash flow value of €20.32
Current Discount Checks
For Ready Capital to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ready Capital's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ready Capital's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ready Capital's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ready Capital's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
MUN:0SZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.84
NYSE:RC Share Price ** NYSE (2019-04-18) in USD $14.63
Global Mortgage REITs Industry PE Ratio Median Figure of 22 Publicly-Listed Mortgage REITs Companies 11.42x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.67x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ready Capital.

MUN:0SZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RC Share Price ÷ EPS (both in USD)

= 14.63 ÷ 1.84

7.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ready Capital is good value based on earnings compared to the Global Mortgage REITs industry average.
  • Ready Capital is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Ready Capital's expected growth come at a high price?
Raw Data
MUN:0SZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.95x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
9.1%per year
Global Mortgage REITs Industry PEG Ratio Median Figure of 20 Publicly-Listed Mortgage REITs Companies 1.11x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

MUN:0SZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.95x ÷ 9.1%

0.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ready Capital is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Ready Capital's assets?
Raw Data
MUN:0SZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $16.97
NYSE:RC Share Price * NYSE (2019-04-18) in USD $14.63
Global Mortgage REITs Industry PB Ratio Median Figure of 36 Publicly-Listed Mortgage REITs Companies 0.99x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.85x
MUN:0SZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RC Share Price ÷ Book Value per Share (both in USD)

= 14.63 ÷ 16.97

0.86x

* Primary Listing of Ready Capital.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ready Capital is good value based on assets compared to the Global Mortgage REITs industry average.
X
Value checks
We assess Ready Capital's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage REITs industry average (and greater than 0)? (1 check)
  5. Ready Capital has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ready Capital expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ready Capital expected to grow at an attractive rate?
  • Ready Capital's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Ready Capital's earnings growth is positive but not above the Germany market average.
  • Ready Capital's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
MUN:0SZ Future Growth Rates Data Sources
Data Point Source Value (per year)
MUN:0SZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 9.1%
MUN:0SZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 3.3%
Global Mortgage REITs Industry Earnings Growth Rate Market Cap Weighted Average 27%
Global Mortgage REITs Industry Revenue Growth Rate Market Cap Weighted Average 18.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
MUN:0SZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
MUN:0SZ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 202 64 1
2020-12-31 236 75 6
2019-12-31 206 70 6
MUN:0SZ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 212 140 59
2018-09-30 155 239 62
2018-06-30 153 184 57
2018-03-31 152 385 52
2017-12-31 209 352 43
2017-09-30 140 253 57
2017-06-30 130 229 54
2017-03-31 117 34 51
2016-12-31 128 15 51
2016-09-30 96 43 35
2016-06-30 96 45 38
2016-03-31 94 21 40

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ready Capital's earnings are expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).
  • Ready Capital's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
MUN:0SZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Ready Capital Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

MUN:0SZ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.74 1.74 1.74 1.00
2020-12-31 1.81 1.96 1.72 6.00
2019-12-31 1.80 2.14 1.64 6.00
MUN:0SZ Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.84
2018-09-30 1.93
2018-06-30 1.78
2018-03-31 1.64
2017-12-31 1.38
2017-09-30 1.86
2017-06-30 1.86
2017-03-31 1.85
2016-12-31 1.93
2016-09-30 1.59
2016-06-30 1.64
2016-03-31 1.64

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ready Capital is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ready Capital's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ready Capital has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ready Capital performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ready Capital's growth in the last year to its industry (Mortgage REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ready Capital has delivered over 20% year on year earnings growth in the past 5 years.
  • Ready Capital's 1-year earnings growth exceeds its 5-year average (36.6% vs 27.2%)
  • Ready Capital's earnings growth has exceeded the Global Mortgage REITs industry average in the past year (36.6% vs 7%).
Earnings and Revenue History
Ready Capital's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ready Capital Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

MUN:0SZ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 212.28 59.04 79.64
2018-09-30 154.73 61.99 83.80
2018-06-30 152.66 56.94 82.80
2018-03-31 151.51 52.17 81.12
2017-12-31 208.90 43.23 78.18
2017-09-30 140.47 57.02 76.10
2017-06-30 129.73 53.99 67.65
2017-03-31 117.28 51.45 59.84
2016-12-31 128.21 51.33 50.38
2016-09-30 96.19 34.53 42.17
2016-06-30 95.67 37.67 40.85
2016-03-31 94.28 39.97 39.51
2015-12-31 101.45 41.04 38.45
2015-09-30 80.53 46.96 31.53
2015-06-30 90.11 46.91 32.84
2015-03-31 88.70 39.23 30.08
2014-12-31 74.84 32.01 29.04
2014-09-30 71.82 15.19 31.14
2014-06-30 44.50 1.00 20.30
2014-03-31 28.76 0.90 13.50
2013-12-31 16.48 0.80 6.11
2012-12-31 18.40 43.29 9.58

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ready Capital has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ready Capital used its assets more efficiently than the Global Mortgage REITs industry average last year based on Return on Assets.
  • Unable to establish if Ready Capital improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Ready Capital's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ready Capital has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ready Capital's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ready Capital's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ready Capital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ready Capital's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ready Capital's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ready Capital Company Filings, last reported 3 months ago.

MUN:0SZ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 564.08 2,395.29 148.41
2018-09-30 569.04 2,246.36 66.52
2018-06-30 564.56 2,168.15 113.02
2018-03-31 561.76 1,998.81 94.33
2017-12-31 555.47 1,876.75 70.70
2017-09-30 555.05 1,879.38 106.49
2017-06-30 552.81 1,827.88 68.12
2017-03-31 549.86 1,903.91 44.36
2016-12-31 552.10 1,967.63 86.06
2016-09-30 484.63 1,623.20 38.90
2016-06-30 487.86 1,624.22 55.52
2016-03-31 489.81 1,692.92 60.65
2015-12-31 480.21 1,791.44 42.32
2015-09-30 494.06 1,776.14 85.49
2015-06-30
2015-03-31 474.69 1,128.72 58.21
2014-12-31 474.69 1,128.72 58.21
2014-09-30 482.14 795.87 44.93
2014-06-30 473.59 741.80 27.30
2014-03-31 470.91 118.64 220.45
2013-12-31 470.91 117.88 220.45
2012-12-31 136.81 0.00 29.31
  • Ready Capital's level of debt (424.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (25% vs 424.6% today).
  • Debt is not well covered by operating cash flow (5.9%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Ready Capital's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Ready Capital's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ready Capital has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ready Capital's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
10.94%
Current annual income from Ready Capital dividends. Estimated to be 11.06% next year.
If you bought €2,000 of Ready Capital shares you are expected to receive €219 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ready Capital's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • Ready Capital's dividend is above the markets top 25% of dividend payers in Germany (3.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
MUN:0SZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Global Mortgage REITs Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 10.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

MUN:0SZ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.68 1.00
2020-12-31 1.63 6.00
2019-12-31 1.60 6.00
MUN:0SZ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-12 1.600 10.855
2018-12-12 1.600 10.584
2018-09-11 1.600 10.300
2017-12-13 1.480 9.632
2017-03-15 1.610 10.680
2017-03-14 1.610 11.669
2016-11-01 2.000 15.033

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ready Capital has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Ready Capital has only been paying a dividend for 2 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Ready Capital's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess Ready Capital's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ready Capital afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ready Capital has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ready Capital's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Capasse
AGE 61
TENURE AS CEO 2.5 years
CEO Bio

Mr. Thomas Edward Capasse, also known as Tom, is a Manager and Co-Founder of Waterfall Asset Management, LLC (“Manager”). Mr. Capasse also serves as Chairman of board of directors and Chief Executive Officer at Ready Capital Corporation (formerly known as Sutherland Asset Management Corporation). Mr. Capasse managed the principal finance groups at Greenwich Capital from 1995 until 1997, Nomura Securities from 1997 until 2001, and Macquarie Securities from 2001 until 2004. Mr. Capasse has significant and long-standing experience in the securitization market as a Founding Member of Merrill Lynch's ABS Group (1983-1994) with a focus on MBS transactions (including the initial Subprime Mortgage and Manufactured Housing ABS) and experience in many other ABS sectors. Mr. Capasse began his career as a Fixed Income Analyst at Dean Witter and Bank of Boston. Mr. Capasse received a Bachelor of Arts degree in Economics from Bowdoin College in 1979.

CEO Compensation
  • Insufficient data for Tom to compare compensation growth.
  • Insufficient data for Tom to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Ready Capital management team in years:

2.5
Average Tenure
61
Average Age
  • The tenure for the Ready Capital management team is about average.
Management Team

Rick Herbst

TITLE
CFO & Secretary
COMPENSATION
$976K
AGE
61
TENURE
2.5 yrs

Tom Capasse

TITLE
Chairman & CEO
AGE
61
TENURE
2.5 yrs

Jack Ross

TITLE
President & Director
AGE
61
TENURE
2.5 yrs

Gary Taylor

TITLE
Chief Operating Officer

Tom Buttacavoli

TITLE
Chief Investment Officer
AGE
41

Brian Dunn

TITLE
Director of Finance Division
Board of Directors Tenure

Average tenure and age of the Ready Capital board of directors in years:

2.5
Average Tenure
61
Average Age
  • The average tenure for the Ready Capital board of directors is less than 3 years, this suggests a new board.
Board of Directors

Tom Capasse

TITLE
Chairman & CEO
AGE
61
TENURE
2.5 yrs

Jack Ross

TITLE
President & Director
AGE
61
TENURE
2.5 yrs

Frank Filipps

TITLE
Independent Director
COMPENSATION
$213K
AGE
71
TENURE
2.5 yrs

J. Reese

TITLE
Independent Director
COMPENSATION
$203K
AGE
59
TENURE
2.5 yrs

Todd Sinai

TITLE
Independent Director
COMPENSATION
$203K
AGE
48
TENURE
2.5 yrs

David Holman

TITLE
Independent Director
COMPENSATION
$204K
AGE
70
TENURE
4.1 yrs

Gilbert Nathan

TITLE
Director
AGE
38
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
27. Nov 18 Buy Thomas Capasse Individual 21. Nov 18 26. Nov 18 20,000 €13.10 €258,811
X
Management checks
We assess Ready Capital's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ready Capital has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Ready Capital Corporation operates as a real estate finance company in the United States. The company originates, acquires, finances, and services small balance commercial (SBC) loans, small business administration (SBA) loans, and residential mortgage loans, as well as mortgage backed securities collateralized primarily by SBC loans, or other real estate-related investments. It operates through four segments: Loan Acquisitions; SBC Originations; SBA Originations, Acquisitions and Servicing; and Residential Mortgage Banking. The Loan Acquisitions segment acquires performing and non-performing SBC loans. The SBC Originations segment originates SBC loans secured by stabilized or transitional investor properties using various loan origination channels; and originates and services multi-family loan products. The SBA Originations, Acquisitions and Servicing segment acquires, originates, and services owner-occupied loans guaranteed by the SBA. The Residential Mortgage Banking segment originates residential mortgage loans through retail, correspondent, and broker channels. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Sutherland Asset Management Corporation and changed its name to Ready Capital Corporation in September 2018. Ready Capital Corporation was founded in 2007 and is headquartered in New York, New York.

Details
Name: Ready Capital Corporation
0SZ
Exchange: MUN
Founded: 2007
$432,446,800
$417,913,554
33,242,135
Website: http://www.readycapital.com
Address: Ready Capital Corporation
1140 Avenue of the Americas,
7th Floor,
New York,
New York, 10036,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RC Common Stock New York Stock Exchange US USD 01. Nov 2016
DB A2ATTT Common Stock Deutsche Boerse AG DE EUR 01. Nov 2016
MUN 0SZ Common Stock Boerse Muenchen DE EUR 01. Nov 2016
Number of employees
Current staff
Staff numbers
417
Ready Capital employees.
Industry
Mortgage REITs
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 22:28
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/04
Last earnings filing: 2019/03/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.