RC (Ready Capital) Beneish M-Score: 0.00 (As of Jun. 24, 2026)


RC Ready Capital Corp RC
31 GF Score
Price $1.71
GF Value $0.65
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Ready Capital Beneish M-Score?

Ready Capital RC +1.79% 31 Beneish M-Score is 0.00 as of Jun. 24, 2026. GuruFocus rates RC with a GF Score™ of 31/100 and a GF Value™ of $0.65 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 765 REITs companies, Ready Capital ranks worse than 130718.82% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The historical rank and industry rank for Ready Capital's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of Ready Capital was 5.85. The lowest was -4.11. And the median was -1.98.

RC
31GF Score
Ready Capital Corp RC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Ready Capital Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Ready Capital for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $188.45 Mil.
Revenue was -80.854 + 12.907 + 43.774 + -6.286 = $-30.46 Mil.
Gross Profit was -80.854 + 12.907 + 43.774 + -6.286 = $-30.46 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $6,314.29 Mil.
Property, Plant and Equipment(Net PPE) was $3.20 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.26 Mil.
Selling, General, & Admin. Expense(SGA) was $114.35 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $2,353.81 Mil.
Net Income was -201.729 + -234.184 + -18.745 + -55.491 = $-510.15 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 590.189 + -10.762 + 434.677 + -100.267 = $913.84 Mil.
 Total Receivables was $252.95 Mil.
Revenue was -74.096 + 80.216 + 61.737 + -25.286 = $42.57 Mil.
Gross Profit was -74.096 + 80.216 + 61.737 + -25.286 = $42.57 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $9,976.45 Mil.
Property, Plant and Equipment(Net PPE) was $6.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.65 Mil.
Selling, General, & Admin. Expense(SGA) was $103.77 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $4,846.25 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(188.447 / -30.459) / (252.945 / 42.571)
= / 5.941721
=

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(42.571 / 42.571) / (-30.459 / -30.459)
=1 /
=

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 3.198) / 6314.288) / (1 - (0 + 6.899) / 9976.451)
=0.999494 / 0.999308
=

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=-30.459 / 42.571
=

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1.645 / (1.645 + 6.899)) / (6.261 / (6.261 + 3.198))
=0.192533 / 0.661909
=

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(114.347 / -30.459) / (103.765 / 42.571)
= / 2.437457
=

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((2353.812 + 0) / 6314.288) / ((4846.246 + 0) / 9976.451)
=0.372776 / 0.485769
=

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-510.149 - 0 - 913.837) / 6314.288
=-0.225518

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 0.00 mean?
Ready Capital (RC) has a Beneish M-Score of 0.00 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Ready Capital and its competitors. According to the industry distribution chart, Ready Capital ranks #999999 out of 765 companies in the REITs industry.
Is Ready Capital's Beneish M-Score too high?
Ready Capital's current Beneish M-Score is 0.00. Based on the distribution chart, Ready Capital ranks #999999 out of 765 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Ready Capital has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ready Capital's Beneish M-Score compare to NREF and ACRE?
According to the REITs industry distribution chart, Ready Capital ranks #999999 out of 765 companies for Beneish M-Score. This places Ready Capital in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a REITs company?
A good Beneish M-Score depends on the REITs industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Ready Capital and its competitors. Ready Capital's current Beneish M-Score is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ready Capital stock overvalued right now?
Based on GuruFocus' analysis, Ready Capital (RC) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.65, compared to a current price of $1.71 — trading 163.1% above its estimated fair value. The current Beneish M-Score is 0.00. Ready Capital's overall GF Score™ is 31/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Ready Capital (RC), the current Beneish M-Score is 0.00 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ready Capital (RC) Overvalued in 2026?

Based on GuruFocus' analysis, Ready Capital stock appears to be overvalued. The current stock price of $1.71 is trading 163.1% above its estimated GF Value™ of $0.65. GuruFocus considers Ready Capital to be Significantly Overvalued.

Key valuation signals for RC:

  • Beneish M-Score: 0.00
  • GF Value™: $0.65 vs. price of $1.71 (163.1% above fair value)
  • GF Score™: 31/100 with 1 warning sign

No single metric tells the full story. See the RC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Ready Capital Business Description

Industry Real EstateREITs
Other Exchanges RCpC.PFD:USA0SZ:Germany
Address 1251 Avenue of the Americas, 50th Floor, New York, NY, USA, 10020
Ready Capital Corp is a real estate finance company that originates, acquires, finances, and services LMM loans, SBA loans, construction loans, USDA loans and, to a lesser extent, MBS collateralized mainly by LMM loans or other real estate-related investments. Its loans are used by businesses to purchase real estate used in their operations or by investors seeking to acquire multi-family, office, retail, mixed use or warehouse properties. It operates through two segments: LMM Commercial Real Estate, which originates LMM loans across the life-cycle of an LMM property including construction, bridge, stabilized and agency loan channels, and Small Business Lending, which acquires, originates and services owner-occupied loans guaranteed by the SBA and also originates and services USDA loans.
31GF Score

Get the complete analysis for RC

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$1.71
Price
$0.65
GF Value