-0.75%
-2.49%
-2.92%
-28.34%
-29.03%
-53.30%
-59.25%
AI Spotlight on RC
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.
Market Data
| Last Price | 6.65 |
| Change Percentage | -0.75% |
| Open | 6.71 |
| Previous Close | 6.7 |
| Market Cap ( Millions) | 1121 |
| Volume | 3365722 |
| Year High | 9.54 |
| Year Low | 6.45 |
| M A 50 | 7.1 |
| M A 200 | 7.92 |
Financial Ratios
| FCF Yield | 23.47% |
| Dividend Yield | 16.54% |
| ROE | -5.45% |
| Debt / Equity | 283.33% |
| Net Debt / EBIDTA | 1388.43% |
| Price To Book | 0.5 |
| Price Earnings Ratio | -8.65 |
| Price To FCF | 4.26 |
| Price To sales | 1.25 |
| EV / EBITDA | 16.42 |
News
- Jan -23 - Past Time To Take Gains On These Big Yielders
- Jan -16 - Ready Capital Corporation Announces New Share Repurchase Program
- Jan -15 - High Yield REITs Whacked By Higher Rates
- Dec -27 - RCD: A 9.00% Senior Note IPO From Ready Capital Corporation
- Dec -13 - Ready Capital Corporation Declares Fourth Quarter 2024 Dividends
- Dec -13 - Huge Yields, Brief Notes
- Dec -12 - NexPoint Comments on Cancellation of United Development Funding IV (UDF IV) 2024 Annual Meeting
- Dec -10 - Ready Capital Corporation Announces Closing of Public Offering of Senior Notes Due 2029 and Partial Exercise of Over-allotment Option
- Dec -10 - NexPoint Comments on United Development Funding IV (UDF IV) Annual Meeting
- Dec -04 - Ready Capital: 9% Senior Notes Might Be Worth Pursuing
- Dec -03 - Ready Capital Corporation Announces Pricing of Public Offering of Senior Notes Due 2029
- Dec -03 - Ready Capital Corporation Announces Public Offering of Senior Notes Due 2029
- Dec -02 - Ready Capital and United Development Funding IV Announce Definitive Agreement for Ready Capital to Acquire United Development Funding IV
- Nov -14 - 3 High Yield October Dividend Payers: Blackstone, Ready Capital And Medical Property Trust
- Nov -08 - Ready Capital Corporation (RC) Q3 2024 Earnings Call Transcript
- Nov -08 - Here's What Key Metrics Tell Us About Ready Capital (RC) Q3 Earnings
- Nov -08 - Ready Capital (RC) Q3 Earnings Surpass Estimates
- Oct -31 - Ready Capital Corporation Announces Third Quarter 2024 Results and Webcast Call
- Oct -17 - 3 Shares Yielding Over 9%
- Oct -17 - Readers Identify 25 Ideal September Dividend Buys Out Of 39 Picks
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Lower-to-middle-market Commercial Real Estate
Expected Growth : 8.33 %
What the company do ?
Lower-to-middle-market Commercial Real Estate from Ready Capital Corporation refers to small to medium-sized commercial property investments, typically valued between $2 million to $20 million, offering financing solutions for borrowers.
Why we expect these perspectives ?
Ready Capital Corporation's 8.33% growth in Lower-to-middle-market Commercial Real Estate is driven by increasing demand for flexible financing options, rising property values, and a strong economy. Additionally, the company's expertise in small-balance commercial lending and strategic partnerships contribute to its growth. Furthermore, the growing need for renovation and construction loans in this segment also fuels the company's expansion.
Segment n°2 -> Corporate - Other
Expected Growth : 9.33 %
What the company do ?
Corporate - Other from Ready Capital Corporation refers to non-lending operations, including corporate expenses and other miscellaneous income/expense items.
Why we expect these perspectives ?
Ready Capital Corporation's 9.33% growth in Corporate - Other segment is driven by increasing demand for commercial mortgage banking services, expansion of small business lending, and growth in mortgage loan originations. Additionally, the company's strategic acquisitions and partnerships have contributed to the segment's growth.
Segment n°3 -> Small Business Lending
Expected Growth : 10.27 %
What the company do ?
Ready Capital Corporation's Small Business Lending provides financing solutions to small businesses, offering flexible terms and competitive rates to support their growth and development.
Why we expect these perspectives ?
Ready Capital Corporation's 10.27% growth in small business lending is driven by increasing demand for alternative financing options, expansion into new markets, and strategic partnerships. Additionally, the company's technology-enabled platform and efficient underwriting process have improved customer experience, leading to increased adoption and retention rates.
Ready Capital Corporation Products
| Product Range | What is it ? |
|---|---|
| Small Business Administration (SBA) Loans | Ready Capital Corporation offers SBA loans to small businesses, providing financing for various business purposes such as expansion, acquisition, and refinancing. |
| Commercial Mortgage Loans | Ready Capital Corporation provides commercial mortgage loans for property owners and investors, offering financing for acquisition, refinance, and cash-out of commercial properties. |
| Bridge Loans | Ready Capital Corporation offers bridge loans to provide short-term financing for commercial properties, allowing borrowers to quickly access capital for time-sensitive transactions. |
| Construction Loans | Ready Capital Corporation provides construction loans for developers and builders, offering financing for ground-up construction, renovation, and redevelopment projects. |
| Multifamily Loans | Ready Capital Corporation offers multifamily loans for apartment building owners and investors, providing financing for acquisition, refinance, and rehabilitation of multifamily properties. |
Ready Capital Corporation's Porter Forces
Threat Of Substitutes
Ready Capital Corporation operates in a niche market, providing financing solutions to small businesses. While there are substitutes available, the company's specialized services and strong relationships with its customers reduce the threat of substitutes.
Bargaining Power Of Customers
Ready Capital Corporation's customers are small businesses, which have limited bargaining power due to their size and dependence on the company's financing solutions.
Bargaining Power Of Suppliers
Ready Capital Corporation has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it negotiating power with its suppliers.
Threat Of New Entrants
The financing industry has high barriers to entry, including regulatory requirements and the need for significant capital. This reduces the threat of new entrants in the market.
Intensity Of Rivalry
The financing industry is competitive, with several established players. However, Ready Capital Corporation's specialized services and strong relationships with its customers help it to differentiate itself from its competitors.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 78.63% |
| Debt Cost | 7.93% |
| Equity Weight | 21.37% |
| Equity Cost | 11.19% |
| WACC | 8.62% |
| Leverage | 367.85% |
Ready Capital Corporation : Quality Control
Ready Capital Corporation passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| EARN | Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing in, and managing residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including … |
| ACR | ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and other commercial real estate-related debt investments … |
| TWO | Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and … |
| RWT | Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking, … |
| LADR | The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Ellington Residential Mortgage REIT
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1-Year Total Return ->
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Ladder Capital
A-Score
1-Year Total Return ->
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Two Harbors Investment
A-Score
1-Year Total Return ->
4
Ready Capital
A-Score
1-Year Total Return ->
5
Redwood Trust
A-Score
1-Year Total Return ->
6
