RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis
USA - NYSE:RITM - US64828T2015 - REIT
10.86 USD
+0.03 (+0.28%)
10.8998 USD
+0.04 (+0.37%)
We assign a fundamental rating of 4 out of 10 to RITM. RITM was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RITM has an excellent profitability rating, but there are concerns on its financial health. RITM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RITM had positive earnings in the past year.
RITM had a negative operating cash flow in the past year.
RITM had positive earnings in 4 of the past 5 years.
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 1.54%, RITM belongs to the top of the industry, outperforming 92.65% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.56%, RITM belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
RITM's Return On Invested Capital of 1.27% is amongst the best of the industry. RITM outperforms 83.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RITM is above the industry average of 1.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 8.56% | ||
| ROIC | 1.27% |
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
RITM's Profit Margin of 14.78% is amongst the best of the industry. RITM outperforms 82.35% of its industry peers.
In the last couple of years the Profit Margin of RITM has declined.
The Operating Margin of RITM (14.61%) is better than 72.06% of its industry peers.
In the last couple of years the Operating Margin of RITM has grown nicely.
The Gross Margin of RITM (60.99%) is better than 89.71% of its industry peers.
In the last couple of years the Gross Margin of RITM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.61% | ||
| PM (TTM) | 14.78% | ||
| GM | 60.99% |
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.
The number of shares outstanding for RITM has been increased compared to 1 year ago.
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 -0.01. This is a bad value and indicates that RITM is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of -0.01, RITM is doing good in the industry, outperforming 61.76% of the companies in the same industry.
RITM has a Debt/Equity ratio of 3.93. This is a high value indicating a heavy dependency on external financing.
RITM's Debt to Equity ratio of 3.93 is fine compared to the rest of the industry. RITM outperforms 60.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.93 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.01 |
ROIC/WACC0.21
WACC6.13%
2.3 Liquidity
RITM has a Current Ratio of 0.19. 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 Current ratio of 0.19. This is comparable to the rest of the industry: RITM outperforms 55.88% of its industry peers.
A Quick Ratio of 0.19 indicates that RITM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.19, RITM is in line with its industry, outperforming 55.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
RITM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.84%.
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 5.72% in the last year.
Measured over the past years, RITM shows a quite strong growth in Revenue. The Revenue has been growing by 16.85% on average per year.
EPS 1Y (TTM)7.84%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%14.89%
Revenue 1Y (TTM)5.72%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-0.04%
3.2 Future
Based on estimates for the next years, RITM will show a small growth in Earnings Per Share. The EPS will grow by 1.77% on average per year.
Based on estimates for the next years, RITM will show a small growth in Revenue. The Revenue will grow by 3.92% on average per year.
EPS Next Y5%
EPS Next 2Y4.29%
EPS Next 3Y1.77%
EPS Next 5YN/A
Revenue Next Year-2.89%
Revenue Next 2Y0.86%
Revenue Next 3Y3.92%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.94, the valuation of RITM can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of RITM indicates a rather cheap valuation: RITM is cheaper than 95.59% of the companies listed in the same industry.
RITM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.89.
With a Price/Forward Earnings ratio of 4.78, 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 95.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, RITM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.94 | ||
| Fwd PE | 4.78 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of RITM may justify a higher PE ratio.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y4.29%
EPS Next 3Y1.77%
5. Dividend
5.1 Amount
RITM has a Yearly Dividend Yield of 9.23%, which is a nice return.
Compared to an average industry Dividend Yield of 12.70, RITM's dividend is way lower than its industry peers. On top of this 80.88% 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.23% |
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
RITM pays out 90.74% of its income as dividend. This is not a sustainable payout ratio.
DP90.74%
EPS Next 2Y4.29%
EPS Next 3Y1.77%
10.86
+0.03 (+0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners51.52%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner Change-0.72%
Market Cap5.76B
Revenue(TTM)4.60B
Net Income(TTM)680.67M
Analysts85.88
Price Target14.9 (37.2%)
Short Float %1.52%
Short Ratio1.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.23% |
Yearly Dividend1.17
Dividend Growth(5Y)-10.86%
DP90.74%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.33%
Min EPS beat(2)1.32%
Max EPS beat(2)9.34%
EPS beat(4)4
Avg EPS beat(4)17.44%
Min EPS beat(4)1.32%
Max EPS beat(4)32.68%
EPS beat(8)8
Avg EPS beat(8)23.02%
EPS beat(12)12
Avg EPS beat(12)23.08%
EPS beat(16)15
Avg EPS beat(16)18.94%
Revenue beat(2)1
Avg Revenue beat(2)-6.42%
Min Revenue beat(2)-16.07%
Max Revenue beat(2)3.22%
Revenue beat(4)3
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-16.07%
Max Revenue beat(4)15.11%
Revenue beat(8)4
Avg Revenue beat(8)1.88%
Revenue beat(12)7
Avg Revenue beat(12)93.36%
Revenue beat(16)11
Avg Revenue beat(16)178.87%
PT rev (1m)0%
PT rev (3m)5.5%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)0.01%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0.65%
Revenue NQ rev (3m)5.73%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.94 | ||
| Fwd PE | 4.78 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.72 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.2
EY20.26%
EPS(NY)2.27
Fwd EY20.93%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)-0.23
OCFYN/A
SpS8.68
BVpS14.99
TBVpS14.16
PEG (NY)0.99
PEG (5Y)N/A
Graham Number27.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 8.56% | ||
| ROCE | 2.08% | ||
| ROIC | 1.27% | ||
| ROICexc | 1.32% | ||
| ROICexgc | 1.41% | ||
| OM | 14.61% | ||
| PM (TTM) | 14.78% | ||
| GM | 60.99% | ||
| 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
ROICexgc growth 3Y2.15%
ROICexgc 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-Score4
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.93 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 10.78% | ||
| Interest Coverage | 0.37 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | -0.01 |
F-Score4
WACC6.13%
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)7.84%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%14.89%
EPS Next Y5%
EPS Next 2Y4.29%
EPS Next 3Y1.77%
EPS Next 5YN/A
Revenue 1Y (TTM)5.72%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-0.04%
Revenue Next Year-2.89%
Revenue Next 2Y0.86%
Revenue Next 3Y3.92%
Revenue Next 5YN/A
EBIT growth 1Y-32.19%
EBIT growth 3Y6.09%
EBIT growth 5Y24.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-123.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-104.4%
OCF growth 3YN/A
OCF growth 5YN/A
RITHM CAPITAL CORP / RITM FAQ
What is the ChartMill fundamental rating of RITHM CAPITAL CORP (RITM) stock?
ChartMill assigns a fundamental rating of 4 / 10 to RITM.
Can you provide the valuation status for RITHM CAPITAL CORP?
ChartMill assigns a valuation rating of 6 / 10 to RITHM CAPITAL CORP (RITM). This can be considered as Fairly Valued.
How profitable is RITHM CAPITAL CORP (RITM) stock?
RITHM CAPITAL CORP (RITM) has a profitability rating of 7 / 10.
Can you provide the financial health for RITM stock?
The financial health rating of RITHM CAPITAL CORP (RITM) is 1 / 10.
Can you provide the dividend sustainability for RITM stock?
The dividend rating of RITHM CAPITAL CORP (RITM) is 4 / 10 and the dividend payout ratio is 90.74%.