MeritValue

Ready Capital Corp

RCdata completeness 88%14 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

Ready Capital Corp earns about 10% on invested capital, but has diluted owners by 144% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $9.91 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$395.2M1$663.2M2$945.8M3$897M3$569.2M3
Net income$160M4$203.2M5$348.4M6−$430.4M6−$221.1M6
Operating cash flow−$34.4M7$359.1M8$51.1M9$274.8M9$432.1M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$897.1M10$1.12B11$1.11B12$1.33B13$1.38B14
Cash & equivalents$193M15$147.4M16$138.5M17$143.8M17$207.8M17
Diluted shares68.7M117.2M148.6M170.5M167.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$92.31
your share of equity
Profit it earned you last year
−$13.22
Free cash flow it threw off
—
Debt you’d be carrying
$82.22

10 shares is a claim on $92.31 of net worth that earned you −$13.22 last year, against $82.22 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
10% avg · 5y
FY21 15%FY22 19%FY23 30%FY24 -8%FY25 -7%

It earned an average 10% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+144% shares · 5y

Share count is up 144% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 53% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$9.91
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$160M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001558370-24-002034 (InterestAndDividendIncomeOperating)
  2. 10-K/A · period ending 2022-12-31 · accession 0001628280-25-043144 (InterestAndDividendIncomeOperating)
  3. 10-K · period ending 2023-12-31 · accession 0001628280-26-013256 (InterestAndDividendIncomeOperating)
  4. 10-K · period ending 2021-12-31 · accession 0001558370-24-002034 (ProfitLoss)
  5. 10-K/A · period ending 2022-12-31 · accession 0001628280-25-043144 (ProfitLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001628280-26-013256 (ProfitLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001558370-24-002034 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K/A · period ending 2022-12-31 · accession 0001628280-25-043144 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001628280-26-013256 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001558370-22-002392 (LongTermDebt)
  11. 10-K · period ending 2022-12-31 · accession 0001558370-23-002422 (LongTermDebt)
  12. 10-K · period ending 2023-12-31 · accession 0001558370-24-002034 (LongTermDebt)
  13. 10-K/A · period ending 2024-12-31 · accession 0001628280-25-043144 (LongTermDebt)
  14. 10-K · period ending 2025-12-31 · accession 0001628280-26-013256 (LongTermDebt)
  15. 10-K · period ending 2021-12-31 · accession 0001558370-24-002034 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K/A · period ending 2022-12-31 · accession 0001628280-25-043144 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0001628280-26-013256 (CashAndCashEquivalentsAtCarryingValue)