RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis
USA - NYSE:RITM - US64828T2015 - REIT
12.46 USD
+0.39 (+3.23%)
12.55 USD
+0.09 (+0.72%)
Overall RITM gets a fundamental rating of 4 out of 10. We evaluated RITM against 62 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
RITM had positive earnings in the past year.
In the past year RITM has reported a negative cash flow from operations.
RITM had positive earnings in 4 of the past 5 years.
RITM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RITM has a better Return On Assets (1.54%) than 91.94% of its industry peers.
RITM has a Return On Equity of 8.56%. This is amongst the best in the industry. RITM outperforms 93.55% of its industry peers.
RITM's Return On Invested Capital of 1.27% is amongst the best of the industry. RITM outperforms 82.26% of its industry peers.
RITM had an Average Return On Invested Capital over the past 3 years of 4.23%. This is above the industry average of 1.39%.
| 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
Looking at the Profit Margin, with a value of 14.78%, RITM belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
RITM's Profit Margin has declined in the last couple of years.
RITM has a better Operating Margin (14.61%) than 70.97% of its industry peers.
In the last couple of years the Operating Margin of RITM has grown nicely.
Looking at the Gross Margin, with a value of 60.99%, RITM belongs to the top of the industry, outperforming 88.71% of the companies in the same industry.
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.
The debt/assets ratio for RITM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.00, we must say that RITM is in the distress zone and has some risk of bankruptcy.
RITM's Altman-Z score of 0.00 is in line compared to the rest of the industry. RITM outperforms 56.45% of its industry peers.
RITM has a Debt/Equity ratio of 3.93. This is a high value indicating a heavy dependency on external financing.
RITM has a Debt to Equity ratio (3.93) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.93 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0 |
ROIC/WACC0.2
WACC6.31%
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 (0.19) which is in line with its industry peers.
RITM has a Quick 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 Quick ratio of 0.19. This is comparable to the rest of the industry: RITM outperforms 50.00% of its industry peers.
| 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%.
The Earnings Per Share has been decreasing by -0.75% on average over the past years.
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
The Earnings Per Share is expected to grow by 4.23% on average over the next years.
The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y4.98%
EPS Next 2Y4.24%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue Next Year-3.04%
Revenue Next 2Y0.46%
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
RITM is valuated cheaply with a Price/Earnings ratio of 5.66.
Based on the Price/Earnings ratio, RITM is valued cheaply inside the industry as 95.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.20, RITM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.49, the valuation of RITM can be described as very cheap.
93.55% of the companies in the same industry are more expensive than RITM, based on the Price/Forward Earnings ratio.
RITM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.66 | ||
| Fwd PE | 5.49 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RITM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RITM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y4.24%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
RITM has a Yearly Dividend Yield of 10.47%, which is a nice return.
RITM's Dividend Yield is comparable with the industry average which is at 11.50.
Compared to an average S&P500 Dividend Yield of 2.38, RITM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.47% |
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
90.74% of the earnings are spent on dividend by RITM. This is not a sustainable payout ratio.
DP90.74%
EPS Next 2Y4.24%
EPS Next 3Y4.23%
12.46
+0.39 (+3.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners52.69%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner Change-0.72%
Market Cap6.61B
Analysts85.88
Price Target14.9 (19.58%)
Short Float %1.87%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.47% |
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)1.54%
PT rev (3m)6.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)2.65%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)5.22%
Revenue NQ rev (3m)4.93%
Revenue NY rev (1m)4.94%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.66 | ||
| Fwd PE | 5.49 | ||
| P/S | 1.43 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.83 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.2
EY17.66%
EPS(NY)2.27
Fwd EY18.23%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)-0.23
OCFYN/A
SpS8.68
BVpS14.99
TBVpS14.16
PEG (NY)1.14
PEG (5Y)N/A
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
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-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 |
F-Score4
WACC6.31%
ROIC/WACC0.2
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 Y4.98%
EPS Next 2Y4.24%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue 1Y (TTM)5.72%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-0.04%
Revenue Next Year-3.04%
Revenue Next 2Y0.46%
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