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ZYBERNO

Stock Report

Updated Aug 25, 2026

READY CAPITAL CORPORATION (RCD)

Financial Services • NYSE

$23.64

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

29.0/100

POOR BUSINESS

READY CAPITAL CORPORATION (RCD) scores 29/100 — 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 RCD 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 →

198.9%

Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)

309.6%

Yield + growth — what the business alone earns you, even if the market never re-rates

💰 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 RCD valuation analysis · → View full RCD 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 (-34.9%)

Debt-to-Equity (Solvency Risk):AVERAGE (0.90x)

Operating Margin (Operational Efficiency):CRITICAL (-147.6%)

Return on Capital (Capital Efficiency):CRITICAL (-16.7%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

READY CAPITAL CORPORATION (RCD) stock report — Zyberno Score 29/100 (POOR BUSINESS), Margin of Safety +99.0%, 199% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, READY CAPITAL CORPORATION (RCD) trades at $23.64 against an estimated intrinsic value per share of $2,264.90 — 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 198.9% annually.

Over the trailing twelve months, RCD generated $907.86M in Owner Earnings. Capital was deployed as follows: $50.74M paid as dividends, $15.50M invested in capital expenditures. Reinvestment rate: -10.3%. 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:23.64

Market Cap:$294.87M

Valuation Multiples (3)

P/B Ratio:0.22x

P/S Ratio:0.70x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$1.75B

Pfcf Ratio:0.33x

Price Action & Momentum (2)

12-1 Momentum:

+9.6% (51th pctile)

📈 Click to view full RCD Momentum analysis →

Momentum Percentile:51 / 100

B. Profitability Assessment

Return Metrics (5)

ROE:

-34.9%

📊 Click to view full RCD ROE analysis →

ROA:-7.7%

Roic:

-16.7%

📊 Click to view full RCD ROIC analysis →

Reinvestment Rate:-10.3%

Fundamental Growth Rate (g):1.7%

Margin Analysis (3)

Operating Margin Ttm:-147.6%

Net Margin Ttm:-130.6%

Ebitda Margin:-146.2%

TTM Performance (2)

Operating Margin Ttm:-147.6%

Net Margin Ttm:-130.6%

Yield Metrics (3)

Earnings Yield:-$14.55

Owner Earnings Yield:$307.89

Dividend Yield:17.2%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.04

📊 Click to view full RCD Earnings Surprise analysis →

EPS Surprise vs Expected:7.8%

Latest Earnings Filed:2026-08-07

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-22.0%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):18.7%

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):19.5%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.03x

Quick Ratio:0.03x

Cash Ratio:0.03x

Leverage Analysis (3)

Debt To Equity Ttm:0.90x

Debt-to-Equity Ratio:0.90x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-1.39x

Times Interest Earned:-1.39

Capital Structure (4)

Working Capital:-4,789,530,000.00

Cash And Cash Equivalents:124,149,000.00

Long Term Debt:$1.19B

Net Debt:$1.45B

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $420.60M

Linear Growth: -22.0%

📊 Click to view full RCD Revenue analysis & methodology →

Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00

Operating income TTM: -$620.79M

Linear Growth: 19.5%

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

Bottom Line Performance (3)

Net income TTM: -$549.12M

Linear Growth: 18.7%

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

Income Before Tax:-$620.79M

Ebitda Ttm:-614,718,000.00

Operating Expenses (5)

Operating Expenses:334,694,000.00

R And D Expense:0.00

Sga Expense:0.00

Income Tax Expense:-$71.51M

Interest Expense:217,266,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:0.0%

Ebitda Margin:-146.2%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$6.26B

Current Assets:$124.15M

Ppe Net:0.00

Goodwill:49,501,000.00

Intangible Assets:$36.46M

Liability Structure (4)

Total Liabilities:4,913,679,000.00

Current Liabilities:4,913,679,000.00

Long Term Debt:$1.19B

Short Term Debt:$380.00M

Equity & Capital (3)

Equity:$1.34B

Retained Earnings:-$1.12B

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:2,500,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $913.84M

Linear Growth: 52.8%

Free cash flow TTM: $898.33M

Linear Growth: 53.4%

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

Investment Activities (2)

Investing Cash Flow:$668.94M

Capital Expenditures Ttm:15,504,000.00

Financing Activities (3)

Financing Cash Flow:-$1.27B

Dividends Paid Ttm:50,736,000.00

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:6,076,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-3.45

Eps diluted TTM: -$3.44

Linear Growth: 54.7%

📊 Click to view full RCD EPS analysis & methodology →

Earnings Per Share Ttm:-$44.02

Revenue & Cash Per Share (3)

Sales Per Share Ttm:33.72

Operating Cash Flow Per Share:$34.64

Fcf Per Share Ttm:72.10

Book Value & Capital (2)

Book Value Per Share:$107.58

Cash Per Share:9.95

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 RCD Owner Earnings analysis & methodology →

Owner Earnings Per Share:$72.79

Owner Earnings Yield:$307.89

Growth Assessment (1)

Owner Earnings Growth Rate:$52.39

Damodaran Growth Analysis (2)

Reinvestment Rate:-10.3%

Fundamental Growth Rate (g):1.7%

Intrinsic Value Models (1)

Intrinsic Value:

$28.25B

📊 Click to view full RCD DCF valuation →

Margin of Safety (1)

Margin Of Safety:

99.0%

📊 Click to view full RCD valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:

198.9%

📊 Click to view full RCD expected return analysis →

Forward Expected Return (Yield + Growth):

309.6%

📊 Click to view full RCD 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):-22.0%

Net Income Growth Rate (Linear):18.7%

Operating Income Growth Rate (Linear):19.5%

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):-7.3%

Owner Earnings Growth Rate:$52.39

C. Company Profile & Context

Corporate Information (6)

Symbol:RCD

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:12.47M

Shares Outstanding Basic:165.10M

Shares Outstanding Diluted:172.78M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-25 22:30:14 UTC

Data Timestamp:2026-08-25T22:30:14.479971