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Ready Capital
(NYSE:RC)
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Rating:44Neutral
Price Target:
$1.50
▲(2.04% Upside)
Action:Reiterated
Date:07/24/26
The score is weighed down primarily by weak financial performance (large losses, negative ROE, and uneven cash flow history) and bearish technicals (below key moving averages with negative MACD). The earnings call adds modest support from demonstrated liquidity actions and deleveraging plans, while valuation is mixed—high yield but negative earnings.
Positive Factors
Liquidity generation & debt paydown
Material cash generation and targeted bond retirements materially reduce funding risk and interest-cost sensitivity for a mortgage REIT. This strengthens financing optionality, supports stabilization of leverage targets, and gives management runway to execute a slower, quality-focused portfolio rebuild without immediate refinancing pressure.
Negative Factors
Persistently negative profitability & volatile earnings
Deep and volatile losses undermine internal capital generation and the ability to restore book value. Negative margins and ROE limit capacity to rebuild retained earnings, impair the realization of tax assets, and constrain long-term dividend sustainability absent a durable return-to-profitability trajectory.
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Positive Factors
Negative Factors
Liquidity generation & debt paydown
Material cash generation and targeted bond retirements materially reduce funding risk and interest-cost sensitivity for a mortgage REIT. This strengthens financing optionality, supports stabilization of leverage targets, and gives management runway to execute a slower, quality-focused portfolio rebuild without immediate refinancing pressure.
Read all positive factors
Ready Capital (RC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$239.57M
Dividend Yield10.84%
Average Volume (3M)1.45M
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-56.96%
EPS Growth-78.75%
CountryUS
Employees442
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-3.16
Shares Outstanding165,219,070
10 Day Avg. Volume1,431,963
30 Day Avg. Volume1,451,313
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.23
Price to Sales (P/S)0.72
P/FCF Ratio-1.76
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$1.80Price Target Upside22.45% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)-2.01
Revenue Forecast (FY)$300.25M
Ready Capital Business Overview & Revenue Model
Company Description
Ready Capital Corporation is a U.S.-based entity primarily engaged in the real estate finance sector. Its business activities encompass the procurement, generation, administration, servicing, and funding of various loan types, including commercial...
How the Company Makes Money
Ready Capital makes money primarily through net interest income and fee-based income tied to loan origination, sale, and servicing. (1) Net interest income: RC earns interest on its earning assets—primarily commercial real estate loans (including ...
Ready Capital Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call describes a company undergoing an active, deliberate balance sheet repositioning: management has achieved meaningful liquidity and debt paydown progress (generated $1.4B cash, retired corporate bonds, and reached ~67% of target liquidity) and laid out a credible multi-quarter plan to stabilize leverage (~2.5x) and refocus activities toward SBA lending and selective CRE investing. However, these steps have coincided with significant near-term pain: a GAAP loss of $1.25/sh, a ~61% drop in recurring revenue QoQ, a ~15.5% decline in book value per share, increased operating expenses and reserves, and a material increase in nonperforming metrics. Overall the call balances clear operational progress and strategic rationale against meaningful short-term financial deterioration and execution risk.Positive Updates
Strong Liquidity Generation and Debt Paydown
Generated $1.4 billion in cash from loan sales and liquidations year-to-date; paydown of over $1.1 billion in warehouse debt; produced $270 million in net liquidity and used proceeds to retire $184 million of corporate debt (retired $117M bond in Feb and $67M bond in Apr).
Negative Updates
GAAP Loss and Distributable Earnings Decline
Reported GAAP loss from continuing operations of $1.25 per common share; distributable earnings loss of $1.00 per share and $0.33 per share excluding realized losses on asset sales.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Liquidity Generation and Debt Paydown
Generated $1.4 billion in cash from loan sales and liquidations year-to-date; paydown of over $1.1 billion in warehouse debt; produced $270 million in net liquidity and used proceeds to retire $184 million of corporate debt (retired $117M bond in Feb and $67M bond in Apr).
Read all positive updates
Company Guidance
Management guided that its four-quarter liquidity plan has already generated $1.4 billion year‑to‑date from loan sales and liquidations, enabling over $1.1 billion of warehouse paydowns, $270 million of net liquidity (used to retire $184 million of corporate debt), and the early retirements of a $117 million 5.75% bond and a $67 million 6.2% bond (leaving $450 million of 2026 maturities); they sold 48 loans (UPB ≈ $1.0 billion) for $177 million net (66% performing, 30% non/sub), realized $93 million net from $550 million of runoff, ended the quarter with $200 million of liquidity and $730 million of unencumbered assets, and report having achieved 67% of their target liquidity. Management expects an incremental $400 million of liquidity from the sale/runoff of $2.0–2.5 billion of CRE loans and REO through year‑end (bringing total assets from ≈$6.3 billion closer to $4 billion), after which the legacy CRE portfolio should be ~ $2 billion (including $800–900 million of sub/nonperforming loans and REO that drag earnings by ≈$0.06 per share quarterly and produce ~$9.3 million of cash outflows per quarter); leverage is expected to stabilize around 2.5x (current 3x). They also signaled strategic shifts—average CRE investment size to double from a $17 million historical average, SBA to represent ~20% of capital with a $158 million securitization creating capacity for $500 million of incremental SBA volume (helping drive H2 originations back toward the $1.1 billion 2024 run‑rate)—while acknowledging current Q1 results: GAAP loss $1.25/share, distributable loss $1.00/share ($0.33 ex realized losses), book value $7.43 vs $8.79 YE, recurring revenue $16.2 million (down from $41.5 million), an additional provision of ~ $71 million, a $16.5 million NII hit from ~$1.8 billion of liquidations, deferred tax asset of $201.6 million and a tax receivable of $16.7 million.Ready Capital Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 327.62M | 499.47M | 27.35M | 389.94M | 383.33M | 296.34M |
| Gross Profit | -158.24M | 437.87M | 27.35M | 389.94M | 383.33M | 296.34M |
| EBITDA | -266.50M | 214.38M | 199.72M | 1.10B | 600.87M | 361.73M |
| Net Income | -510.15M | -228.91M | -435.75M | 339.45M | 194.26M | 157.74M |
Balance Sheet | ||||||
| Total Assets | 6.31B | 7.77B | 10.14B | 12.44B | 11.62B | 9.53B |
| Cash, Cash Equivalents and Short-Term Investments | 200.43M | 247.59M | 143.80M | 148.27M | 281.68M | 229.53M |
| Total Debt | 4.62B | 5.86B | 6.04B | 7.24B | 9.34B | 7.92B |
| Total Liabilities | 4.87B | 6.12B | 8.21B | 9.79B | 9.72B | 8.25B |
| Stockholders Equity | 1.35B | 1.55B | 1.84B | 2.55B | 1.80B | 1.28B |
Cash Flow | ||||||
| Free Cash Flow | 873.42M | -203.48M | -51.22M | 33.07M | 359.15M | -3.74B |
| Operating Cash Flow | 873.42M | -203.48M | -51.22M | 33.07M | 359.15M | -34.44M |
| Investing Cash Flow | 2.04B | 2.28B | 1.86B | 1.04B | -1.56B | -1.72B |
| Financing Cash Flow | -2.95B | -2.04B | -1.88B | -1.09B | 1.17B | 1.88B |
Ready Capital Technical Analysis
Negative
1.47
Price Trends
1.66
Negative
1.69
Negative
2.01
Negative
Market Momentum
-0.06
Positive
33.84
Neutral
4.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RC, the sentiment is Negative. The current price of 1.47 is below the 20-day moving average (MA) of 1.56, below the 50-day MA of 1.66, and below the 200-day MA of 2.01, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 33.84 is Neutral, neither overbought nor oversold. The STOCH value of 4.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RC.
Ready Capital Risk Analysis
Ready Capital disclosed 128 risk factors in its most recent earnings report. Ready Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ready Capital Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $627.97M | 14.43 | 5.45% | 11.14% | 3.78% | -15.19% | |
57 Neutral | $687.82M | 4.63 | 9.91% | 20.32% | 27.77% | 275.76% | |
51 Neutral | $416.03M | -2.12 | -16.70% | 11.58% | -19.57% | -397.76% | |
46 Neutral | $64.69M | -1.33 | -6.46% | 15.04% | -23.52% | 64.81% | |
44 Neutral | $239.57M | -0.45 | -31.42% | 10.54% | -56.96% | -78.75% | |
43 Neutral | $256.77M | -0.46 | -35.83% | ― | 79.83% | -27.98% |
* Real Estate Sector Average
RC
Ready Capital
1.43
-2.53
-63.93%
IVR
Invesco Mortgage
7.41
1.15
18.41%
KREF
Kkr Real Estate Finance
6.96
-1.14
-14.12%
GPMT
Granite Point Mortgage
1.44
-0.82
-36.40%
TRTX
Tpg Re Finance
7.97
0.23
2.93%
CMTG
Claros Mortgage Trust
1.77
-1.02
-36.56%
Ready Capital Corporate Events
Executive/Board ChangesShareholder Meetings
Ready Capital Shareholders Approve Board, Pay and Equity Plan
Positive
Jul 23, 2026
At its July 17, 2026 annual meeting, held virtually, Ready Capital Corporation shareholders elected all seven director nominees to serve until the 2027 annual meeting, reaffirming the company’s existing board leadership. Investors also ratif...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.