RC Stock Overview
Ready Capital Corporation operates as a real estate finance company in the United States.
Ready Capital Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$14.41|
|52 Week High||US$16.78|
|52 Week Low||US$13.24|
|1 Month Change||-1.97%|
|3 Month Change||-1.23%|
|1 Year Change||-1.30%|
|3 Year Change||-1.10%|
|5 Year Change||-2.96%|
|Change since IPO||13.29%|
Recent News & Updates
Ready Capital: Headwinds From Rising Interest Rates
Ready Capital's short term performance is likely to be stressed amid rising interest rates. The company has a higher than average dividend yield, but distribution growth is extremely volatile. The annual EPS growth for 2022 is expected to remain flat amid quantitative tightening and economic rebound. I am neutral on the stock because even though it is a good income generator, the non-existent dividend growth history fails to shield investors against inflationary pressures.
Trade Orchid Island Capital For Ready Capital To Realize Future Growth And Income
Orchid Island Capital is losing book value, suffering from margin compression, and recently cut the dividend to reduce expenses. The outlook for ORC is not optimistic given the triple threat posed by the Fed of higher rates, easing bond purchases, and an expected reduction in assets. A better option might be Ready Capital, with a 10.8% yield and a stronger financial position going into 2022.
|RC||US Mortgage REITs||US Market|
Return vs Industry: RC exceeded the US Mortgage REITs industry which returned -20.8% over the past year.
Return vs Market: RC exceeded the US Market which returned -11.5% over the past year.
|RC Average Weekly Movement||4.2%|
|Mortgage REITs Industry Average Movement||4.4%|
|Market Average Movement||8.0%|
|10% most volatile stocks in US Market||17.0%|
|10% least volatile stocks in US Market||3.0%|
Stable Share Price: RC is less volatile than 75% 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.
About the Company
Ready Capital Corporation operates as a real estate finance company in the United States. The company acquires, originates, manages, services, and finances small to medium balance commercial (SBC) loans, small business administration (SBA) loans, residential mortgage loans, and mortgage backed securities collateralized primarily by SBC loans, or other real estate-related investments. It operates through three segments: SBC Lending and Acquisitions; Small Business Lending; and Residential Mortgage Banking.
Ready Capital Fundamentals Summary
|RC fundamental statistics|
Is RC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|RC income statement (TTM)|
|Cost of Revenue||US$93.43m|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||1.51|
|Net Profit Margin||30.98%|
How did RC perform over the long term?See historical performance and comparison
11.7%Current Dividend Yield
Is Ready Capital undervalued compared to its fair value and its price relative to the market?
Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RC ($14.41) is trading below our estimate of fair value ($19.02)
Significantly Below Fair Value: RC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RC is good value based on its PE Ratio (9.7x) compared to the US Mortgage REITs industry average (11.8x).
PE vs Market: RC is good value based on its PE Ratio (9.7x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: RC is poor value based on its PEG Ratio (4.6x)
Price to Book Ratio
PB vs Industry: RC is overvalued based on its PB Ratio (1x) compared to the US Mortgage REITs industry average (0.8x).
How is Ready Capital forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RC's forecast earnings growth (2.1% per year) is above the savings rate (1.9%).
Earnings vs Market: RC's earnings (2.1% per year) are forecast to grow slower than the US market (12.4% per year).
High Growth Earnings: RC's earnings are forecast to grow, but not significantly.
Revenue vs Market: RC's revenue (12.4% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: RC's revenue (12.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if RC's Return on Equity is forecast to be high in 3 years time
How has Ready Capital performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RC has high quality earnings.
Growing Profit Margin: RC's current net profit margins (31%) are higher than last year (24%).
Past Earnings Growth Analysis
Earnings Trend: RC's earnings have grown significantly by 22.1% per year over the past 5 years.
Accelerating Growth: RC's earnings growth over the past year (42%) exceeds its 5-year average (22.1% per year).
Earnings vs Industry: RC earnings growth over the past year (42%) exceeded the Mortgage REITs industry 5.4%.
Return on Equity
High ROE: RC's Return on Equity (9.9%) is considered low.
How is Ready Capital's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: RC's short term assets ($10.8B) exceed its short term liabilities ($2.7B).
Long Term Liabilities: RC's short term assets ($10.8B) exceed its long term liabilities ($6.8B).
Debt to Equity History and Analysis
Debt Level: RC's net debt to equity ratio (452.4%) is considered high.
Reducing Debt: RC's debt to equity ratio has increased from 346.1% to 465.4% over the past 5 years.
Debt Coverage: RC's debt is not well covered by operating cash flow (0.3%).
Interest Coverage: Insufficient data to determine if RC's interest payments on its debt are well covered by EBIT.
What is Ready Capital current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RC's dividend (11.66%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: RC's dividend (11.66%) is in the top 25% of dividend payers in the US market (4.07%)
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's dividend payments have increased, but the company has only paid a dividend for 5 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (74.1%), RC's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (639.5%), RC's dividend payments are not well covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Capasse (64 yo)
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...
Experienced Management: RC's management team is considered experienced (3 years average tenure).
Experienced Board: RC's board of directors are considered experienced (5.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 60.4%.
Ready Capital Corporation's employee growth, exchange listings and data sources
- Name: Ready Capital Corporation
- Ticker: RC
- Exchange: NYSE
- Founded: 2007
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Implied Market Cap: US$1.685b
- Market Cap: US$1.659b
- Shares outstanding: 116.11m
- Website: https://www.readycapital.com
Number of Employees
- Ready Capital Corporation
- 1251 Avenue of the Americas
- 50Th Floor
- New York
- New York
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/19 00:00|
|End of Day Share Price||2022/05/19 00:00|
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.