Ready Capital Corporation Notes -15.12.29 (RCD)
Valuation Overview•Is Ready Capital Corporation Notes -15.12.29 Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Fragile underlying quality score of 29/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, driven by a balanced mix of reliable dividends and share buybacks.
RCD struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company demonstrates solid revenue growth (9.2% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-273.8%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $45.1M | +1726.0% | +9.2% | +5.4% | +24.0% | |
| EBITDA | -$107.9M | — | — | — | — | |
| Net Income | -$201.7M | +47.5% | — | — | -68.2% | |
| EPS (Diluted) | $-1.25 | +45.2% | — | — | -42.9% | |
| Free Cash Flow | $590.2M | -297.3% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | -88.4% | 95.9% | 97.5% | 86.7% |
| Operating Margin | -273.8% | 24.2% | 24.2% | -21.7% |
| Net Margin | -290.7% | -517.3% | -289.6% | -129.4% |
| FCF Margin | 497.7% | -73.2% | -277.5% | -101.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | $-0.14 | $-0.43 | -210.4% | ||
| Q4'25 | $-0.24 | $-0.11 | +53.4% | ||
| Q3'25 | $-0.05 | $-0.14 | -160.4% | ||
| Q2'25 | $0.12 | $-0.09 | -175.0% | ||
| Q1'25 | $0.21 | $0.23 | +9.5% | ||
| Q4'24 | $0.23 | $0.25 | +8.7% | ||
| Q3'24 | $0.26 | $0.07 | -73.1% | ||
| Q2'24 | $0.28 | $0.29 | +3.6% |
Total return is +7.9% (1Y), lagging the benchmark by -12.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +11.4% | +4.1% | — |
| 1Y | +7.9% | -12.9% | +9.8% |
| 3YCAGR | +1.3% | -17.9% | +13.7% |
| 5YCAGR | +0.8% | -10.7% | +13.7% |
| 10YCAGR | +0.4% | -13.3% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Ready Capital Corporation Notes -15.12.29 (RCD) valuation, health, and returns.
Ready Capital Corporation Notes -15.12.29 is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -25.9% downside from DCF intrinsic value of $16.71)
Ready Capital Corporation Notes -15.12.29 has multiple valuation anchors: DCF Intrinsic Value: $16.71 | Peer Relative Fair Value: $4.69. A convergence of these signals offers higher conviction.
Ready Capital Corporation Notes -15.12.29 displays weak financial health with a composite quality score of 29/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 1.2%.
Ready Capital Corporation Notes -15.12.29 pays a 3.0% dividend yield, covered by a 0% payout ratio with 1 years of growth, supplemented by a 1.8% buyback yield.
Ready Capital Corporation Notes -15.12.29's current growth trajectory is Accelerating. The company achieved +1726.0% 1Y revenue growth and +45.2% 1Y EPS growth, compared to its 3Y revenue CAGR of +9.2%.
Wall Street consensus is Hold based on 0 analysts, beating EPS expectations in 33% of recent quarters with a -1-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Ready Capital Corporation Notes -15.12.29 include: -44.9% 1-year max drawdown. Volatility risk is characterized by a beta of 0.15x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.