Ready CapitalRC +1.71%31 Return-on-Tangible-Equity is -65.63% as of Mar. 2026. GuruFocus rates RC with a GF Score™ of 31/100 and a GF Value™ of $0.65 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 934 REITs companies, Ready Capital ranks worse than 98.29% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ready Capital's annualized net income for the quarter that ended in Mar. 2026 was $-806.92 Mil. Ready Capital's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,229.50 Mil. Therefore, Ready Capital's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -65.63%.
The historical rank and industry rank for Ready Capital's Return-on-Tangible-Equity or its related term are showing as below:
RC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -34.66 Med: 12.47 Max: 18.47
Current: -34.66
During the past 13 years, Ready Capital's highest Return-on-Tangible-Equity was 18.47%. The lowest was -34.66%. And the median was 12.47%.
RC's Return-on-Tangible-Equity is ranked worse than 98.29% of 934
companies
in the REITs industry
Industry Median: 6.265
vs RC: -34.66
Ready Capital (NYSE:RC) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ready Capital Return-on-Tangible-Equity Related Terms
Ready Capital Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ready Capital's Return-on-Tangible-Equity can be seen below:
* 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.
RC vs NREF, MITT, CMTG: Return-on-Tangible-Equity Comparison
For the REIT - Mortgage subindustry, Ready Capital's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ready Capital Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Ready Capital's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ready Capital's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -65.63% mean?
Ready Capital (RC) has a Return-on-Tangible-Equity of -65.63% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ready Capital and its competitors. According to the industry distribution chart, Ready Capital ranks #918 out of 934 companies in the REITs industry, placing it in the top 98.3%.
Is Ready Capital's Return-on-Tangible-Equity too high?
Ready Capital's current Return-on-Tangible-Equity is -65.63%. Based on the distribution chart, Ready Capital ranks #918 out of 934 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 Return-on-Tangible-Equity compare to NREF and MITT?
According to the REITs industry distribution chart, Ready Capital ranks #918 out of 934 companies for Return-on-Tangible-Equity. This places Ready Capital in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.27. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.27, based on 934 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ready Capital and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ready Capital's current Return-on-Tangible-Equity is -65.63%. 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 $1.78 — trading 173.8% above its estimated fair value. The current Return-on-Tangible-Equity is -65.63%. Ready Capital's overall GF Score™ is 31/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ready Capital (RC), the current Return-on-Tangible-Equity is -65.63% as of Mar. 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 $1.78 is trading 173.8% above its estimated GF Value™ of $0.65.
GuruFocus considers Ready Capital to be Significantly Overvalued.
Key valuation signals for RC:
Return-on-Tangible-Equity: -65.63%
GF Value™: $0.65 vs. price of $1.78 (173.8% above fair value)
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 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
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