NYSE:RC

Stock Analysis Report

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Market Cap

US$1.1b

Last Updated

2021/07/31 05:16 UTC

Data Sources

Company Financials +

Executive Summary

Ready Capital Corporation, together with its subsidiaries, operates as a real estate finance company in the United States. More Details


Snowflake Analysis

Acceptable track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Ready Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

RC

1.1%

US Mortgage REITs

-0.5%

US Market


1 Year Return

88.5%

RC

35.7%

US Mortgage REITs

35.9%

US Market

Return vs Industry: RC exceeded the US Mortgage REITs industry which returned 35.7% over the past year.

Return vs Market: RC exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

RCIndustryMarket
7 Day0.7%1.1%-0.5%
30 Day-6.3%-3.3%0.3%
90 Day4.2%-2.9%3.1%
1 Year110.4%88.5%48.4%35.7%38.0%35.9%
3 Year28.4%-9.5%6.2%-21.7%62.9%52.7%
5 Yearn/a37.9%-18.7%121.7%97.3%

Long-Term Price Volatility Vs. Market

How volatile is Ready Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ready Capital undervalued compared to its fair value and its price relative to the market?

6.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RC ($15.12) is trading above our estimate of fair value ($10.1)

Significantly Below Fair Value: RC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RC is good value based on its PE Ratio (6.8x) compared to the US Mortgage REITs industry average (7.6x).

PE vs Market: RC is good value based on its PE Ratio (6.8x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: RC is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: RC's PB Ratio (1x) is in line with the US Mortgage REITs industry average.


Future Growth

How is Ready Capital forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RC's forecast earnings growth (1.9% per year) is below the savings rate (2%).

Earnings vs Market: RC's earnings (1.9% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: RC's earnings are forecast to grow, but not significantly.

Revenue vs Market: RC's revenue is expected to decline over the next 3 years (-7% per year).

High Growth Revenue: RC's revenue is forecast to decline over the next 3 years (-7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RC's Return on Equity is forecast to be low in 3 years time (11.6%).


Past Performance

How has Ready Capital performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RC has high quality earnings.

Growing Profit Margin: RC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RC's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: RC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (49.5%).


Return on Equity

High ROE: RC's Return on Equity (10.6%) is considered low.


Financial Health

How is Ready Capital's financial position?


Financial Position Analysis

Short Term Liabilities: RC's short term assets ($7.7B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: RC's short term assets ($7.7B) exceed its long term liabilities ($4.7B).


Debt to Equity History and Analysis

Debt Level: RC's debt to equity ratio (555.5%) is considered high.

Reducing Debt: RC's debt to equity ratio has increased from 345.5% to 555.5% over the past 5 years.

Debt Coverage: RC's debt is not well covered by operating cash flow (1.8%).

Interest Coverage: Insufficient data to determine if RC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

8.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RC's dividend (8.6%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: RC's dividend (8.6%) is in the top 25% of dividend payers in the US market (3.54%)


Stability and Growth of Payments

Stable Dividend: RC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RC has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.7%), RC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RC's dividends in 3 years are not forecast to be well covered by earnings (94.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Tom Capasse (64 yo)

4.75yrs

Tenure

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 Offic...


Leadership Team

Experienced Management: RC's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: RC's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.2%.


Top Shareholders

Company Information

Ready Capital Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ready Capital Corporation
  • Ticker: RC
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Implied Market Cap: US$1.095b
  • Market Cap: US$1.077b
  • Shares outstanding: 72.40m
  • Website: https://www.readycapital.com

Number of Employees


Location

  • Ready Capital Corporation
  • 1251 Avenue of the Americas
  • 50Th Floor
  • New York
  • New York
  • 10020
  • United States

Listings


Biography

Ready Capital Corporation, together with its subsidiaries, operates as a real estate finance company in the United States. The company originates, acquires, finances, and services small balance commercial ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 05:16
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.