Ready Capital Corporation Notes -15.12.29 (RCD): fair value, margin of safety and Wheel Score

Is RCD undervalued?

RCD closed at 21.29 on 16 Oct 2026, more than 30% above the GLS average fair value of 9.60. Only 0 of the 2 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.

The average is built from just 2 models (DCF, DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.

The nightly engine files RCD under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.

Nine valuation models for RCD

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Ready Capital Corporation Notes -15.12.29 scores only 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 2.2/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

Returns on capital are thin or negative - ROIC -3.1%, ROE -14.7%, ROA -2.9% - with debt at 3.78 times equity and a free-cash-flow yield of 571.3%. Debt of 3.78 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.

The dividend yield is 3.74% at a payout ratio of -9%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold.

Institutional ownership scores 1/10, insider activity 9/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 17: No options

No options are listed on Ready Capital Corporation Notes -15.12.29 in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 17) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 11k shares a day on a market cap of $177M, with a beta of 1.50 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 5 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 5 Nov 2026 (after the close), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in REIT - Mortgage

The 12 companies below are the closest to Ready Capital Corporation Notes -15.12.29 by market cap within the REIT - Mortgage industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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