RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis
NYSE:RITM - New York Stock Exchange, Inc. - US64828T2015 - REIT - Currency: USD
RITM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RITM has a medium profitability rating, but doesn't score so well on its financial health evaluation. RITM is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years RITM 4 years had a positive operating cash flow.
1.2 Ratios
RITM's Return On Assets of 1.15% is fine compared to the rest of the industry. RITM outperforms 78.13% of its industry peers.
RITM has a Return On Equity of 6.33%. This is comparable to the rest of the industry: RITM outperforms 57.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.22%, RITM is doing worse than 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RITM is above the industry average of 1.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 6.33% | ||
| ROIC | 0.22% |
ROA(3y)1.93%
ROA(5y)0.52%
ROE(3y)10.25%
ROE(5y)2.18%
ROIC(3y)4.2%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of RITM (13.10%) is comparable to the rest of the industry.
RITM's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.02%, RITM is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
RITM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 51.67%, RITM is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
RITM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.02% | ||
| PM (TTM) | 13.1% | ||
| GM | 51.67% |
OM growth 3YN/A
OM growth 5Y-14.58%
PM growth 3YN/A
PM growth 5Y-19.48%
GM growth 3Y5.17%
GM growth 5Y1.75%
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.
Compared to 5 years ago, RITM has more shares outstanding
The debt/assets ratio for RITM has remained at the same level compared to a year ago.
2.2 Solvency
RITM has an Altman-Z score of -0.11. This is a bad value and indicates that RITM is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.11, RITM perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
RITM has a Debt/Equity ratio of 3.87. This is a high value indicating a heavy dependency on external financing.
RITM has a Debt to Equity ratio (3.87) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.11 |
ROIC/WACC0.04
WACC5.61%
2.3 Liquidity
A Current Ratio of 0.16 indicates that RITM may have some problems paying its short term obligations.
RITM's Current ratio of 0.16 is in line compared to the rest of the industry. RITM outperforms 40.63% of its industry peers.
RITM has a Quick Ratio of 0.16. 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 Quick ratio value of 0.16, RITM perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
RITM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.38%.
Measured over the past years, RITM shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.76% on average per year.
Looking at the last year, RITM shows a very negative growth in Revenue. The Revenue has decreased by -20.31% in the last year.
RITM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.30% yearly.
EPS 1Y (TTM)6.38%
EPS 3Y12.42%
EPS 5Y-2.76%
EPS Q2Q%-6.9%
Revenue 1Y (TTM)-20.31%
Revenue growth 3Y37.07%
Revenue growth 5Y10.3%
Sales Q2Q%15.55%
3.2 Future
RITM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.51% yearly.
Based on estimates for the next years, RITM will show a small growth in Revenue. The Revenue will grow by 5.56% on average per year.
EPS Next Y-6.79%
EPS Next 2Y-2.25%
EPS Next 3Y0.51%
EPS Next 5YN/A
Revenue Next Year15.8%
Revenue Next 2Y8.73%
Revenue Next 3Y5.56%
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.
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 5.67, 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 93.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. RITM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.76, the valuation of RITM can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RITM indicates a rather cheap valuation: RITM is cheaper than 90.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 91.29. RITM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.67 | ||
| Fwd PE | 5.76 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.25%
EPS Next 3Y0.51%
5. Dividend
5.1 Amount
RITM has a Yearly Dividend Yield of 8.87%, which is a nice return.
With a Dividend Yield of 8.87, RITM pays less dividend than the industry average, which is at 13.38. 92.19% 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.87% |
5.2 History
The dividend of RITM decreases each year by -9.44%.
RITM has paid a dividend for at least 10 years, which is a reliable track record.
RITM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.44%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
118.81% of the earnings are spent on dividend by RITM. This is not a sustainable payout ratio.
DP118.81%
EPS Next 2Y-2.25%
EPS Next 3Y0.51%
RITHM CAPITAL CORP
NYSE:RITM (1/29/2025, 8:04:01 PM)
After market: 11.35 +0.01 (+0.09%)11.34
-0.07 (-0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners47.38%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner Change0.67%
Market Cap5.89B
Analysts84.44
Price Target13.46 (18.69%)
Short Float %0.98%
Short Ratio1.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.87% |
Yearly Dividend1.19
Dividend Growth(5Y)-9.44%
DP118.81%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.61%
Min EPS beat(2)8.8%
Max EPS beat(2)26.42%
EPS beat(4)4
Avg EPS beat(4)23.42%
Min EPS beat(4)8.8%
Max EPS beat(4)32.28%
EPS beat(8)8
Avg EPS beat(8)28.27%
EPS beat(12)11
Avg EPS beat(12)19.61%
EPS beat(16)12
Avg EPS beat(16)15.64%
Revenue beat(2)1
Avg Revenue beat(2)5.29%
Min Revenue beat(2)-4.53%
Max Revenue beat(2)15.11%
Revenue beat(4)1
Avg Revenue beat(4)1.87%
Min Revenue beat(4)-4.53%
Max Revenue beat(4)15.11%
Revenue beat(8)4
Avg Revenue beat(8)52.88%
Revenue beat(12)8
Avg Revenue beat(12)218.14%
Revenue beat(16)12
Avg Revenue beat(16)213.5%
PT rev (1m)0.38%
PT rev (3m)0.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.76%
EPS NY rev (1m)0%
EPS NY rev (3m)4.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.48%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)5.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.67 | ||
| Fwd PE | 5.76 | ||
| P/S | 1.59 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.77 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)2
EY17.64%
EPS(NY)1.97
Fwd EY17.36%
FCF(TTM)-2.76
FCFYN/A
OCF(TTM)-1.92
OCFYN/A
SpS7.11
BVpS14.73
TBVpS13.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 6.33% | ||
| ROCE | 0.38% | ||
| ROIC | 0.22% | ||
| ROICexc | 0.23% | ||
| ROICexgc | 0.25% | ||
| OM | 3.02% | ||
| PM (TTM) | 13.1% | ||
| GM | 51.67% | ||
| FCFM | N/A |
ROA(3y)1.93%
ROA(5y)0.52%
ROE(3y)10.25%
ROE(5y)2.18%
ROIC(3y)4.2%
ROIC(5y)N/A
ROICexc(3y)4.38%
ROICexc(5y)N/A
ROICexgc(3y)4.61%
ROICexgc(5y)N/A
ROCE(3y)8.62%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-8.57%
ROICexc growth 3YN/A
ROICexc growth 5Y-9.7%
OM growth 3YN/A
OM growth 5Y-14.58%
PM growth 3YN/A
PM growth 5Y-19.48%
GM growth 3Y5.17%
GM growth 5Y1.75%
F-Score2
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 11.87% | ||
| Interest Coverage | 0.06 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | -0.11 |
F-Score2
WACC5.61%
ROIC/WACC0.04
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)8.16%
Cap/Sales(5y)N/A
Profit Quality(3y)421.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.38%
EPS 3Y12.42%
EPS 5Y-2.76%
EPS Q2Q%-6.9%
EPS Next Y-6.79%
EPS Next 2Y-2.25%
EPS Next 3Y0.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.31%
Revenue growth 3Y37.07%
Revenue growth 5Y10.3%
Sales Q2Q%15.55%
Revenue Next Year15.8%
Revenue Next 2Y8.73%
Revenue Next 3Y5.56%
Revenue Next 5YN/A
EBIT growth 1Y-93.89%
EBIT growth 3YN/A
EBIT growth 5Y-5.78%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-115.35%
FCF growth 3Y-18.76%
FCF growth 5YN/A
OCF growth 1Y-109.68%
OCF growth 3Y-15.96%
OCF growth 5YN/A