Now trading at a price of $11.18, Ready Capital has rose 2.48% Friday.
Ready Capital shares moved -16.49% over the last 52 weeks, with a high of $13.89 and a low of $9.35. During this time, the stock lagged the S&P 500 index by -12.79%. As of January 2022, the company's 50-day average price is $12.32. Ready Capital Corporation, is a real estate finance company in the United States. The small-cap Real Estate company is based in New York, NY. Ready Capital has returned a 14.5% dividend yield over the last 12 months.
An Unconvincing Cash Flow History with an Upwards Trend:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (k) | $282,811 | $419,912 | $577,281 | $567,936 |
| Revenue Growth | n/a | 48.48% | 37.48% | -1.62% |
| Gross Margins | 29.6% | 7.86% | 40.1% | 41.66% |
| Gross Margins Growth | n/a | -73.45% | 410.18% | 3.89% |
| Operating Margins | -2.89% | -26.08% | 11.93% | 9.22% |
| Operating Margins Growth | n/a | -802.42% | 145.74% | -22.72% |
| Earnings Per Share | $1.43 | $0.83 | $2.08 | $1.76 |
| EPS Growth | n/a | -41.96% | 150.6% | -15.38% |
| Diluted Shares (MM) | 51 | 54 | 76 | 111 |
| Free Cash Flow (k) | -$52,514 | $68,564 | -$34,441 | $348,176 |
| FCF Growth | n/a | 230.56% | -150.23% | 1110.93% |
| Capital Expenditures (k) | $117 | $329 | n/a | $10,972 |
| LT Debt to Equity | 0.53 | 0.54 | 0.7 | 0.63 |
Ready Capital Is Currently Undervalued:
Compared to the Real Estate sector's average of 24.81, Ready Capital has a trailing twelve month P/E ratio of 6.73 and, according to its EPS guidance of 1.66, an expected P/E ratio of 6.73.
In addition, Ready Capital is likely undervalued in terms of its equity because its P/B ratio is 0.809 compared to its sector average of 2.24. The company's shares are currently trading -52.06% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 1.59 * 15.2) = $23.32
8 analysts are following Ready Capital and have set target prices ranging from $11.5 to $16.0 per share. On average, they have given the company a rating of buy. At the current price of $11.18, RC is trading -19.45% away from its average analyst target price of $13.88 per share, implying an analyst consensus of some upside potential for the stock.
