Ready Capital (RC) AI Stock Analysis

• Market Cap: $688.53M
• Dividend Yield: 17.65%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -34.48%
• EPS Growth: -373.29%
• Country: US
• Employees: 475
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): -0.14
• Shares Outstanding: 164,327,270
• 10 Day Avg. Volume: 2,343,996
• 30 Day Avg. Volume: 2,244,544
• PEG Ratio: 0.01
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 42.16
• P/FCF Ratio: 4.20
• Enterprise Value/Market Cap: 11.31
• Enterprise Value/Revenue: 16.04
• Enterprise Value/Gross Profit: 40.95
• Enterprise Value/Ebitda: -155.14
• 1Y Price Target: $4.15
• Price Target Upside: -2.35% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 50 Neutral
• Price Target: $4.00 ▼(-5.88% Downside)

The overall stock score reflects significant financial challenges, with a drastic decline in revenue and profitability. Technical indicators provide some stability, while the high dividend yield offers potential appeal to income investors. However, the negative P/E ratio and high leverage pose substantial risks.

Positive Factors

Cash Generation Ability

Despite financial challenges, Ready Capital's ability to generate positive free cash flow indicates potential for operational stability and flexibility in managing financial obligations.

Partnerships and Capital Access

Strategic partnerships enhance Ready Capital's ability to access capital markets for securitization, supporting its funding capabilities and risk management, which are crucial for long-term growth.

Product Diversification

Diverse product offerings allow Ready Capital to cater to various financing needs, reducing dependency on a single revenue stream and enhancing its market position in the real estate finance sector.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in maintaining market share and operational efficiency, posing risks to long-term financial health and growth prospects.

High Leverage

High leverage increases financial risk, limiting Ready Capital's ability to invest in growth opportunities and potentially impacting its ability to weather economic downturns.

Profitability Challenges

Sustained profitability challenges undermine Ready Capital's capacity to reinvest in its business, affecting its competitive position and long-term sustainability in the market.

Ready Capital Business Overview & Revenue Model

Company Description

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. The SBC Lending and Acquisitions segment, through its subsidiary, ReadyCap Commercial, LLC, originate SBC loans secured by stabilized or transitional investor properties using various loan origination channels. The Small Business Lending segment, through its subsidiary, ReadyCap Lending, LLC, acquires, originates, and services owner-occupied loans guaranteed by the SBA under its SBA Section 7(a) Program. The Residential Mortgage Banking segment, through its subsidiary, GMFS, LLC, originates residential mortgage loans. 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.

How the Company Makes Money

Ready Capital generates revenue primarily through interest income earned on the loans it originates and manages. The company's revenue model includes key streams such as origination fees, servicing fees, and interest income from both fixed-rate and floating-rate loans. Additionally, Ready Capital may receive fees from borrowers for loan modifications, extensions, and other ancillary services. The company has established partnerships with various financial institutions and investors, allowing it to fund loans and manage risk effectively. By leveraging these partnerships, Ready Capital can access capital markets for securitization, which further enhances its earnings potential.

Ready Capital Financial Statement Overview

Summary

Ready Capital is facing significant financial challenges, with a drastic decline in revenue and profitability, high leverage, and low equity ratios. Despite some resilience in cash flow, the overall financial instability is concerning.

Income Statement

Ready Capital has experienced significant volatility in revenue and profitability. The most recent year shows a drastic decline in revenue from $1,145 million to -$101 million, alongside a negative net income of -$443 million. This indicates a severe downturn in financial performance. Historical data shows some growth until 2023, but the recent downturn is concerning.

Balance Sheet

The company's balance sheet reflects high leverage, with a Debt-to-Equity ratio of 2.38, suggesting significant financial risk. Equity has declined over the years, although there was a temporary increase in 2023. The equity ratio remains low at 18.1%, indicating potential vulnerability in its financial structure.

Cash Flow

Cash flow analysis shows some resilience with positive free cash flow in recent years, although the growth rate has been inconsistent. The operating cash flow to net income ratio was positive in 2023 but deteriorated in 2024 due to negative net income. There is a need for consistent positive cash flow to stabilize financial operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	485.61M	27.35M	1.15B	404.04M	337.88M	635.00M
Gross Profit	190.23M	27.35M	1.09B	767.50M	535.94M	440.12M
EBITDA	-50.21M	162.02M	899.56M	666.90M	427.15M	237.92M
Net Income	-303.65M	-435.75M	339.45M	194.26M	157.74M	44.87M
Balance Sheet
Total Assets	9.31B	10.14B	12.44B	11.62B	9.53B	5.37B
Cash, Cash Equivalents and Short-Term Investments	162.94M	143.80M	148.27M	281.68M	229.53M	0.00
Total Debt	720.89M	6.04B	7.24B	9.34B	7.92B	4.12B
Total Liabilities	7.37B	8.21B	9.79B	9.72B	8.25B	4.54B
Stockholders Equity	1.83B	1.84B	2.55B	1.80B	1.28B	815.40M
Cash Flow
Free Cash Flow	310.35M	274.81M	51.13M	359.15M	-3.74B	68.89M
Operating Cash Flow	310.35M	274.81M	51.13M	359.15M	-34.44M	68.89M
Investing Cash Flow	1.66B	1.54B	1.02B	-1.56B	-1.72B	-59.44M
Financing Cash Flow	-2.04B	-1.88B	-1.09B	1.17B	1.88B	63.05M

Ready Capital Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RC, the sentiment is Neutral. The current price of 4.25 is below the 20-day moving average (MA) of 4.26, above the 50-day MA of 4.17, and below the 200-day MA of 4.96, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 30.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RC.

Ready Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRTX	67 Neutral	712.03M	13.98	―	10.60%	-12.51%	―
KREF	54 Neutral	626.20M	-14.45	―	10.53%	-20.88%	-420.89%
RC	50 Neutral	$688.53M	―	-13.92%	17.65%	-34.48%	-373.29%
IVR	50 Neutral	482.05M	18.56	―	20.36%	1.13%	―
GPMT	49 Neutral	144.08M	-1.43	―	6.58%	-29.55%	42.09%
CMTG	48 Neutral	517.34M	-1.24	―	22.97%	-65.30%	-318.17%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Ready Capital Corporate Events

Ready Capital Highlights Strategic Initiatives to Investors

In September 2025, Ready Capital Corporation’s management is set to present to investors, highlighting the company’s strategic initiatives and financial performance. The company has demonstrated strong momentum in its core lending portfolio, with a significant portion of its assets performing well and generating substantial earnings. Recent activities include the completion of a bulk sale of legacy bridge loans and securing ownership of a mixed-use asset, indicating a strategic focus on maximizing book value and recycling capital from non-core portfolios. These efforts are expected to provide meaningful earnings uplift and enhance liquidity, positioning Ready Capital favorably in the market.

The most recent analyst rating on (RC) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Ready Capital stock, see the RC Stock Forecast page.