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ZYBERNO

Stock Report

Updated Jun 11, 2026

READY CAPITAL CORPORATION (RCB)

Financial Services • NYSE

$25.34

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

23.0/100

POOR BUSINESS

READY CAPITAL CORPORATION (RCB) scores 23/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full RCB quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

+99.0%

Undervalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

281.0%

5-year annualised assuming price converges to intrinsic value

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full RCB valuation analysis · → View full RCB Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-29.2%)

Debt-to-Equity (Solvency Risk):AVERAGE (0.89x)

Operating Margin (Operational Efficiency):CRITICAL (-120.3%)

Return on Capital (Capital Efficiency):CRITICAL (-15.5%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

READY CAPITAL CORPORATION (RCB) stock report — Zyberno Score 23/100 (POOR BUSINESS), Margin of Safety +99.0%, 281% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, READY CAPITAL CORPORATION (RCB) trades at $25.34 against an estimated intrinsic value per share of $2,473.80 — a +99.0% Margin of Safety based on Owner Earnings of $907.86M TTM, projected at 52.4% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of 281.0% annually.

Over the trailing twelve months, RCB generated $907.86M in Owner Earnings. Capital was deployed as follows: $72.90M paid as dividends, $14.53M invested in capital expenditures. Reinvestment rate: -10.7%. Owner Earnings have grown at 52.4% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:25.34

Market Cap:$4.15B

Valuation Multiples (3)

P/B Ratio:2.88x

P/S Ratio:8.36x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$5.59B

Pfcf Ratio:4.61x

B. Profitability Assessment

Return Metrics (5)

ROE:

-29.2%

📊 Click to view full RCB ROE analysis →

ROA:-6.3%

Roic:

-15.5%

📊 Click to view full RCB ROIC analysis →

Reinvestment Rate:-10.7%

Fundamental Growth Rate (g):1.7%

Margin Analysis (3)

Operating Margin Ttm:-120.3%

Net Margin Ttm:-101.4%

Ebitda Margin:-119.1%

TTM Performance (2)

Operating Margin Ttm:-120.3%

Net Margin Ttm:-101.4%

Yield Metrics (3)

Earnings Yield:-$12.43

Owner Earnings Yield:$21.89

Dividend Yield:1.8%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-1.17

📊 Click to view full RCB Earnings Surprise analysis →

EPS Surprise vs Expected:-633.3%

Latest Earnings Filed:2026-05-08

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-14.4%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):8.5%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):53.4%

Operating Cash Flow Growth Rate (Linear):52.8%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):5.5%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.04x

Quick Ratio:0.04x

Cash Ratio:0.04x

Leverage Analysis (3)

Debt To Equity Ttm:0.89x

Debt-to-Equity Ratio:0.89x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-0.84x

Times Interest Earned:-0.84

Capital Structure (4)

Working Capital:-4,665,158,000.00

Cash And Cash Equivalents:200,430,000.00

Long Term Debt:$1.26B

Net Debt:$1.44B

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $495.93M

Linear Growth: -14.4%

📊 Click to view full RCB Revenue analysis & methodology →

Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00

Operating income TTM: -$596.52M

Linear Growth: 5.5%

📊 Click to view full RCB Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: -$503.11M

Linear Growth: 8.5%

📊 Click to view full RCB Net Income analysis & methodology →

Income Before Tax:-$596.52M

Ebitda Ttm:-590,544,000.00

Operating Expenses (5)

Operating Expenses:327,398,000.00

R And D Expense:0.00

Sga Expense:0.00

Income Tax Expense:-$98.17M

Interest Expense:358,555,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:0.0%

Ebitda Margin:-119.1%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$6.31B

Current Assets:$200.43M

Ppe Net:0.00

Goodwill:49,501,000.00

Intangible Assets:$37.42M

Liability Structure (4)

Total Liabilities:4,865,588,000.00

Current Liabilities:4,865,588,000.00

Long Term Debt:$1.26B

Short Term Debt:$380.00M

Equity & Capital (3)

Equity:$1.44B

Retained Earnings:-$1.01B

Common Stock:500,000,000.00

Working Capital Items (3)

Accounts Receivable:0.00

Inventory:0.00

Accounts Payable:0.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:1,629,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $913.84M

Linear Growth: 52.8%

Free cash flow TTM: $899.31M

Linear Growth: 53.4%

📊 Click to view full RCB Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:$668.94M

Capital Expenditures Ttm:14,530,000.00

Financing Activities (3)

Financing Cash Flow:-$1.27B

Dividends Paid Ttm:72,902,000.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$220.15M

Long Term Debt Repayments:$79.48M

Non-Cash Items (1)

Depreciation Amortization Ttm:5,976,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-3.16

Eps diluted TTM: -$3.15

Linear Growth: 39.7%

📊 Click to view full RCB EPS analysis & methodology →

Earnings Per Share Ttm:-$3.07

Revenue & Cash Per Share (3)

Sales Per Share Ttm:3.03

Operating Cash Flow Per Share:$2.64

Fcf Per Share Ttm:5.49

Book Value & Capital (2)

Book Value Per Share:$8.80

Cash Per Share:1.22

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.06x

Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:-999.00x

Days Sales Outstanding Ttm:-999.00

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:-999.00

Cash Conversion Cycle:-999.00

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:20.00

Quality Score:35.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $907.86M

Linear Growth: 52.4%

📊 Click to view full RCB Owner Earnings analysis & methodology →

Owner Earnings Per Share:$5.55

Owner Earnings Yield:$21.89

Growth Assessment (1)

Owner Earnings Growth Rate:$52.39

Damodaran Growth Analysis (2)

Reinvestment Rate:-10.7%

Fundamental Growth Rate (g):1.7%

Intrinsic Value Models (1)

Intrinsic Value:

$404.90B

📊 Click to view full RCB DCF valuation →

Margin of Safety (1)

Margin Of Safety:

99.0%

📊 Click to view full RCB valuation analysis →

Return Scenarios (1)

Theoretical 5-Year Return:

281.0%

📊 Click to view full RCB expected return analysis →

Investment Assessment (1)

Buffett Assessment:Excellent margin of safety

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-14.4%

Net Income Growth Rate (Linear):8.5%

Operating Income Growth Rate (Linear):5.5%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):53.4%

Operating Cash Flow Growth Rate (Linear):52.8%

Other Growth Rates (2)

Book Value Growth Rate (Linear):-0.1%

Owner Earnings Growth Rate:$52.39

C. Company Profile & Context

Corporate Information (6)

Symbol:RCB

Company Name:READY CAPITAL CORPORATION

Sector:Financial Services

Industry:Real Estate

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:163.67M

Shares Outstanding Basic:163.67M

Shares Outstanding Diluted:167.65M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-06-11 23:11:34 UTC

Data Timestamp:2026-06-11T23:11:34.244212