(RC) Ready Capital - Overview
Sector: Real Estate | Industry: REIT - Mortgage | Exchange: NYSE (USA) | Market Cap: 305m USD | Total Return: -54.4% in 12m
Avg Turnover: 3.42M
Qual. Beats: -2
Rev. Trend: 7.7%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Ready Capital Corporation (NYSE: RC) is a real estate finance company operating as a mortgage real estate investment trust (mREIT). The company focuses on the lower-to-middle-market (LMM) commercial sector and small business lending, originating and servicing a variety of loans including construction, bridge, and agency products. Its business model leverages federal programs, specifically originating and servicing loans guaranteed by the Small Business Administration (SBA) under the Section 7(a) Program and the USDA.
As a REIT, the company is structurally required to distribute at least 90% of its taxable income to shareholders to maintain its tax-exempt status at the corporate level. Unlike equity REITs that own physical properties, mortgage REITs like Ready Capital earn income primarily from the interest spread between their funding costs and the interest generated from their loan portfolios. Investors may find additional insights into these valuation metrics by reviewing the data on ValueRay. Founded in 2007 and headquartered in New York, the firm serves as a specialized lender for small-to-medium enterprises and commercial property developers.
- SBA 7a loan origination volume and secondary market premiums drive revenue
- Interest rate fluctuations impact net interest margin and mortgage servicing rights valuation
- Credit performance of lower-to-middle-market commercial real estate loans affects book value
- Dividend payout levels determine investor sentiment under federal REIT tax requirements
- Regulatory changes to SBA guarantee programs influence small business lending profitability
| Net Income: -510.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 13.90 > 1.0 |
| NWC/Revenue: 44.44% < 20% (prev -2.26k%; Δ 2.30k% < -1%) |
| CFO/TA 0.14 > 3% & CFO 873.4m > Net Income -510.1m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 1.64 > 1.5 & < 3 |
| Outstanding Shares: last quarter (167.7m) vs 12m ago -0.04% < -2% |
| Gross Margin: -88.43% > 18% (prev -5.86%; Δ -8.26k% > 0.5%) |
| Asset Turnover: 2.15% > 50% (prev 0.21%; Δ 1.95% > 0%) |
| Interest Coverage Ratio: -2.35 > 6 (EBITDA TTM -1.10b / Interest Expense TTM 470.5m) |
| A: 0.01 (Total Current Assets 200.4m - Total Current Liabilities 122.4m) / Total Assets 6.31b |
| B: -0.16 (Retained Earnings -1.01b / Total Assets 6.31b) |
| C: -0.14 (EBIT TTM -1.11b / Avg Total Assets 8.15b) |
| D: -0.21 (Book Value of Equity -1.04b / Total Liabilities 4.87b) |
| Altman-Z'' = -1.58 = D |
| DSRI: 0.06 (Receivables 127.9m/252.9m, Revenue 175.5m/20.6m) |
| GMI: 1.00 (fallback, negative margins) |
| AQI: 0.99 (AQ_t 0.97 / AQ_t-1 0.98) |
| SGI: 8.52 (Revenue 175.5m / 20.6m) |
| TATA: -0.22 (NI -510.1m - CFO 873.4m) / TA 6.31b) |
| Beneish M = 1.36 (Cap -4..+1) = D |
As of May 28, 2026, the stock is trading at USD 1.83 with a total of 1,598,136 shares traded.
Over the past week, the price has changed by +7.65%,
over one month by -2.14%,
over three months by -0.46% and
over the past year by -54.44%.
Ready Capital has received a consensus analysts rating of 2.88. Therefore, it is recommended to hold RC.
- StrongBuy: 0
- Buy: 0
- Hold: 7
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 1.7 | -7.1% |
P/E Forward = 7.0522
P/S = 5.9123
P/B = 0.2435
P/EG = 2.7416
Revenue TTM = 175.5m USD
EBIT TTM = -1.11b USD
EBITDA TTM = -1.10b USD
Long Term Debt = 2.35b USD (from longTermDebt, last quarter)
Short Term Debt = 122.4m USD (from shortTermDebt, last quarter)
Debt = 4.63b USD (from shortLongTermDebtTotal, last quarter) + Leases 8.25m
Net Debt = 4.43b USD (calculated: Debt 4.63b - CCE 200.4m)
Enterprise Value = 4.73b USD (304.6m + Debt 4.63b - CCE 200.4m)
Interest Coverage Ratio = -2.35 (Ebit TTM -1.11b / Interest Expense TTM 470.5m)
EV/FCF = 5.42x (Enterprise Value 4.73b / FCF TTM 873.4m)
FCF Yield = 18.45% (FCF TTM 873.4m / Enterprise Value 4.73b)
FCF Margin = 497.7% (FCF TTM 873.4m / Revenue TTM 175.5m)
Net Margin = -290.7% (Net Income TTM -510.1m / Revenue TTM 175.5m)
Gross Margin = -88.43% ((Revenue TTM 175.5m - Cost of Revenue TTM 330.7m) / Revenue TTM)
Gross Margin QoQ = -8.63% (prev -110.8%)
Tobins Q-Ratio = 0.75 (Enterprise Value 4.73b / Total Assets 6.31b)
Interest Expense / Debt = 10.16% (Interest Expense 470.5m / Debt 4.63b)
Taxrate = 21.0% (US default 21%)
NOPAT = -873.4m (EBIT -1.11b * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.64 (Total Current Assets 200.4m / Total Current Liabilities 122.4m)
Debt / Equity = 3.44 (Debt 4.63b / totalStockholderEquity, last quarter 1.35b)
Debt / EBITDA = -4.02 (negative EBITDA) (Net Debt 4.43b / EBITDA -1.10b)
Debt / FCF = 5.07 (Net Debt 4.43b / FCF TTM 873.4m)
Total Stockholder Equity = 1.63b (last 4 quarters mean from totalStockholderEquity)
RoA = -6.26% (Net Income -510.1m / Total Assets 6.31b)
RoE = -19.34% (Net Income TTM -510.1m / Total Stockholder Equity 2.64b)
RoCE = -22.18% (EBIT -1.11b / Capital Employed (Equity 2.64b + L.T.Debt 2.35b))
RoIC = -13.98% (negative operating profit) (NOPAT -873.4m / Invested Capital 6.25b)
WACC = 8.12% (E(304.6m)/V(4.94b) * Re(9.57%) + D(4.63b)/V(4.94b) * Rd(10.16%) * (1-Tc(0.21)))
Discount Rate = 9.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -68.89 | Cagr: -1.16%
[DCF] Terminal Value 75.44% ; FCFF base≈873.4m ; Y1≈877.0m ; Y5≈929.0m
[DCF] Fair Price = 60.64 (EV 14.4b - Net Debt 4.43b = Equity 10.0b / Shares 165.2m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -4.0 | # QB: -2
Revenue Correlation: 7.69 | Revenue CAGR: 13.18% | SUE: -0.27 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.47 | Chg30d=-235.71% | Revisions=-43% | Analysts=4
EPS next Quarter (2026-09-30): EPS=-0.38 | Chg30d=-207.38% | Revisions=-43% | Analysts=4
EPS current Year (2026-12-31): EPS=-1.91 | Chg30d=-230.45% | Revisions=-43% | GrowthEPS=-20.1% | GrowthRev=-29.5%
EPS next Year (2027-12-31): EPS=-0.58 | Chg30d=-49.36% | Revisions=-33% | GrowthEPS=+69.5% | GrowthRev=-25.3%
[Analyst] Revisions Ratio: -43%