RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis
NYSE:RITM - New York Stock Exchange, Inc. - US64828T2015 - REIT - Currency: USD
Taking everything into account, RITM scores 4 out of 10 in our fundamental rating. RITM was compared to 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While RITM belongs to the best of the industry regarding profitability, there are concerns on its financial health. RITM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RITM was profitable.
In the past year RITM had a positive cash flow from operations.
Of the past 5 years RITM 4 years were profitable.
Of the past 5 years RITM 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.35%, RITM belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
RITM's Return On Equity of 7.84% is amongst the best of the industry. RITM outperforms 92.31% of its industry peers.
RITM has a Return On Invested Capital of 1.33%. This is amongst the best in the industry. RITM outperforms 81.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RITM is above the industry average of 1.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 7.84% | ||
| ROIC | 1.33% |
ROA(3y)1.94%
ROA(5y)0.64%
ROE(3y)10.26%
ROE(5y)2.79%
ROIC(3y)4.23%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of RITM (13.13%) is better than 76.92% of its industry peers.
In the last couple of years the Profit Margin of RITM has declined.
The Operating Margin of RITM (15.52%) is better than 70.77% of its industry peers.
RITM's Operating Margin has improved in the last couple of years.
The Gross Margin of RITM (60.29%) is better than 89.23% of its industry peers.
RITM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.52% | ||
| PM (TTM) | 13.13% | ||
| GM | 60.29% |
OM growth 3Y-5.32%
OM growth 5Y6.2%
PM growth 3Y-5.6%
PM growth 5Y-6.97%
GM growth 3Y-8.52%
GM growth 5Y8.93%
2. Health
2.1 Basic Checks
RITM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RITM has more shares outstanding
RITM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RITM has a worse debt to assets ratio.
2.2 Solvency
RITM has an Altman-Z score of -0.06. This is a bad value and indicates that RITM is not financially healthy and even has some risk of bankruptcy.
RITM has a Altman-Z score (-0.06) which is in line with its industry peers.
A Debt/Equity ratio of 4.15 is on the high side and indicates that RITM has dependencies on debt financing.
RITM has a Debt to Equity ratio (4.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.06 |
ROIC/WACC0.21
WACC6.28%
2.3 Liquidity
RITM has a Current Ratio of 0.15. This is a bad value and indicates that RITM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.15, RITM perfoms like the industry average, outperforming 41.54% of the companies in the same industry.
RITM has a Quick Ratio of 0.15. This is a bad value and indicates that RITM is not financially healthy enough and could expect problems in meeting its short term obligations.
RITM has a Quick ratio of 0.15. This is comparable to the rest of the industry: RITM outperforms 41.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
The earnings per share for RITM have decreased by -2.74% in the last year.
Measured over the past years, RITM shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.75% on average per year.
Looking at the last year, RITM shows a small growth in Revenue. The Revenue has grown by 7.17% in the last year.
RITM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.85% yearly.
EPS 1Y (TTM)-2.74%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%8.33%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-1.54%
3.2 Future
RITM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.02% yearly.
Based on estimates for the next years, RITM will show a small growth in Revenue. The Revenue will grow by 6.98% on average per year.
EPS Next Y2.37%
EPS Next 2Y3.19%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue Next Year-5.73%
Revenue Next 2Y-1.64%
Revenue Next 3Y6.98%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.51, the valuation of RITM can be described as very cheap.
RITM's Price/Earnings ratio is rather cheap when compared to the industry. RITM is cheaper than 92.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, RITM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.27, the valuation of RITM can be described as very cheap.
RITM's Price/Forward Earnings ratio is rather cheap when compared to the industry. RITM is cheaper than 93.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RITM to the average of the S&P500 Index (21.90), we can say RITM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.51 | ||
| Fwd PE | 5.27 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RITM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)N/A
EPS Next 2Y3.19%
EPS Next 3Y3.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.53%, RITM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.54, RITM's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than RITM!
RITM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.53% |
5.2 History
The dividend of RITM decreases each year by -10.86%.
RITM has been paying a dividend for at least 10 years, so it has a reliable track record.
RITM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.86%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
98.66% of the earnings are spent on dividend by RITM. This is not a sustainable payout ratio.
DP98.66%
EPS Next 2Y3.19%
EPS Next 3Y3.02%
11.73
+0.05 (+0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners52.38%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner Change-5.52%
Market Cap6.22B
Analysts85.88
Price Target14.03 (19.61%)
Short Float %0.87%
Short Ratio1.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.53% |
Yearly Dividend1.17
Dividend Growth(5Y)-10.86%
DP98.66%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.01%
Min EPS beat(2)9.34%
Max EPS beat(2)32.68%
EPS beat(4)4
Avg EPS beat(4)19.31%
Min EPS beat(4)8.8%
Max EPS beat(4)32.68%
EPS beat(8)8
Avg EPS beat(8)31.79%
EPS beat(12)12
Avg EPS beat(12)22.98%
EPS beat(16)14
Avg EPS beat(16)18.73%
Revenue beat(2)1
Avg Revenue beat(2)-7.98%
Min Revenue beat(2)-16.07%
Max Revenue beat(2)0.1%
Revenue beat(4)2
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-16.07%
Max Revenue beat(4)15.11%
Revenue beat(8)4
Avg Revenue beat(8)2.05%
Revenue beat(12)7
Avg Revenue beat(12)130.83%
Revenue beat(16)11
Avg Revenue beat(16)190.43%
PT rev (1m)0%
PT rev (3m)3.95%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)5.04%
EPS NY rev (1m)0.24%
EPS NY rev (3m)3.81%
Revenue NQ rev (1m)-2.14%
Revenue NQ rev (3m)-13.42%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-10.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.51 | ||
| Fwd PE | 5.27 | ||
| P/S | 1.34 | ||
| P/FCF | N/A | ||
| P/OCF | 16.35 | ||
| P/B | 0.8 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.13
EY18.16%
EPS(NY)2.23
Fwd EY18.97%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)0.72
OCFY6.12%
SpS8.76
BVpS14.67
TBVpS13.81
PEG (NY)2.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 7.84% | ||
| ROCE | 2.3% | ||
| ROIC | 1.33% | ||
| ROICexc | 1.38% | ||
| ROICexgc | 1.46% | ||
| OM | 15.52% | ||
| PM (TTM) | 13.13% | ||
| GM | 60.29% | ||
| FCFM | N/A |
ROA(3y)1.94%
ROA(5y)0.64%
ROE(3y)10.26%
ROE(5y)2.79%
ROIC(3y)4.23%
ROIC(5y)N/A
ROICexc(3y)4.41%
ROICexc(5y)N/A
ROICexgc(3y)4.66%
ROICexgc(5y)N/A
ROCE(3y)7.86%
ROCE(5y)N/A
ROICexcg growth 3Y2.15%
ROICexcg growth 5Y24.98%
ROICexc growth 3Y1.4%
ROICexc growth 5Y23.9%
OM growth 3Y-5.32%
OM growth 5Y6.2%
PM growth 3Y-5.6%
PM growth 5Y-6.97%
GM growth 3Y-8.52%
GM growth 5Y8.93%
F-Score3
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.15 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 11.85% | ||
| Interest Coverage | 0.41 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | -0.06 |
F-Score3
WACC6.28%
ROIC/WACC0.21
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)6.14%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.74%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%8.33%
EPS Next Y2.37%
EPS Next 2Y3.19%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue 1Y (TTM)7.17%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-1.54%
Revenue Next Year-5.73%
Revenue Next 2Y-1.64%
Revenue Next 3Y6.98%
Revenue Next 5YN/A
EBIT growth 1Y-40.33%
EBIT growth 3Y6.09%
EBIT growth 5Y24.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-104.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-90.87%
OCF growth 3YN/A
OCF growth 5YN/A