RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis
USA - NYSE:RITM - US64828T2015 - REIT
11.12 USD
-0.03 (-0.27%)
11.1 USD
-0.02 (-0.18%)
RITM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While RITM has a great profitability rating, there are quite some concerns on its financial health. RITM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RITM was profitable.
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 1.65%, RITM belongs to the top of the industry, outperforming 92.65% of the companies in the same industry.
RITM has a Return On Equity of 9.15%. This is amongst the best in the industry. RITM outperforms 97.06% of its industry peers.
The Return On Invested Capital of RITM (2.20%) is better than 89.71% 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 1.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 9.15% | ||
| ROIC | 2.2% |
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 15.21%, RITM is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
RITM's Profit Margin has declined in the last couple of years.
The Operating Margin of RITM (23.92%) is better than 86.76% of its industry peers.
In the last couple of years the Operating Margin of RITM has grown nicely.
With an excellent Gross Margin value of 66.94%, RITM belongs to the best of the industry, outperforming 89.71% of the companies in the same industry.
RITM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.92% | ||
| PM (TTM) | 15.21% | ||
| GM | 66.94% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RITM is destroying value.
Compared to 1 year ago, RITM has more shares outstanding
Compared to 5 years ago, RITM has more shares outstanding
Compared to 1 year ago, RITM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.09, we must say that RITM is in the distress zone and has some risk of bankruptcy.
RITM's Altman-Z score of 0.09 is fine compared to the rest of the industry. RITM outperforms 70.59% of its industry peers.
RITM has a Debt/Equity ratio of 3.80. This is a high value indicating a heavy dependency on external financing.
RITM's Debt to Equity ratio of 3.80 is fine compared to the rest of the industry. RITM outperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.09 |
ROIC/WACC0.36
WACC6.09%
2.3 Liquidity
A Current Ratio of 0.22 indicates that RITM may have some problems paying its short term obligations.
With a Current ratio value of 0.22, RITM perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
A Quick Ratio of 0.22 indicates that RITM may have some problems paying its short term obligations.
RITM has a Quick ratio of 0.22. This is comparable to the rest of the industry: RITM outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.00% over the past year.
RITM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.75% yearly.
RITM shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.30%.
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)10%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%0%
Revenue 1Y (TTM)39.3%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-17.6%
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 Y4.79%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 5.05 indicates a rather cheap valuation of RITM.
RITM's Price/Earnings ratio is rather cheap when compared to the industry. RITM is cheaper than 97.06% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, RITM is valued rather cheaply.
RITM is valuated cheaply with a Price/Forward Earnings ratio of 4.89.
94.12% 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 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.05 | ||
| Fwd PE | 4.89 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RITM may justify a higher PE ratio.
PEG (NY)1.06
PEG (5Y)N/A
EPS Next 2Y4.29%
EPS Next 3Y1.77%
5. Dividend
5.1 Amount
RITM has a Yearly Dividend Yield of 8.97%, which is a nice return.
Compared to an average industry Dividend Yield of 11.91, RITM is paying slightly less dividend.
RITM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.97% |
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
81.40% of the earnings are spent on dividend by RITM. This is not a sustainable payout ratio.
DP81.4%
EPS Next 2Y4.29%
EPS Next 3Y1.77%
11.12
-0.03 (-0.27%)
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-0.7%
Market Cap5.90B
Revenue(TTM)5.11B
Net Income(TTM)777.31M
Analysts86.25
Price Target14.79 (33%)
Short Float %1.89%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.97% |
Yearly Dividend1.17
Dividend Growth(5Y)-10.86%
DP81.4%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.24%
Min EPS beat(2)1.16%
Max EPS beat(2)1.32%
EPS beat(4)4
Avg EPS beat(4)11.13%
Min EPS beat(4)1.16%
Max EPS beat(4)32.68%
EPS beat(8)8
Avg EPS beat(8)17.27%
EPS beat(12)12
Avg EPS beat(12)22.56%
EPS beat(16)15
Avg EPS beat(16)17.49%
Revenue beat(2)1
Avg Revenue beat(2)-2.89%
Min Revenue beat(2)-9.01%
Max Revenue beat(2)3.22%
Revenue beat(4)2
Avg Revenue beat(4)-5.44%
Min Revenue beat(4)-16.07%
Max Revenue beat(4)3.22%
Revenue beat(8)3
Avg Revenue beat(8)-1.79%
Revenue beat(12)6
Avg Revenue beat(12)33.44%
Revenue beat(16)10
Avg Revenue beat(16)162.25%
PT rev (1m)-0.76%
PT rev (3m)0.77%
EPS NQ rev (1m)1.89%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)2.46%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)3.66%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)5.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.05 | ||
| Fwd PE | 4.89 | ||
| P/S | 1.15 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.69 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.2
EY19.78%
EPS(NY)2.27
Fwd EY20.44%
FCF(TTM)-6.12
FCFYN/A
OCF(TTM)-5.53
OCFYN/A
SpS9.64
BVpS16.03
TBVpS15.21
PEG (NY)1.06
PEG (5Y)N/A
Graham Number28.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 9.15% | ||
| ROCE | 3.29% | ||
| ROIC | 2.2% | ||
| ROICexc | 2.28% | ||
| ROICexgc | 2.42% | ||
| OM | 23.92% | ||
| PM (TTM) | 15.21% | ||
| GM | 66.94% | ||
| 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-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 6.19% | ||
| Interest Coverage | 0.72 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 0.09 |
F-Score5
WACC6.09%
ROIC/WACC0.36
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)10%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%0%
EPS Next Y4.79%
EPS Next 2Y4.29%
EPS Next 3Y1.77%
EPS Next 5YN/A
Revenue 1Y (TTM)39.3%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-17.6%
Revenue Next Year-2.89%
Revenue Next 2Y0.86%
Revenue Next 3Y3.92%
Revenue Next 5YN/A
EBIT growth 1Y1366.06%
EBIT growth 3Y6.09%
EBIT growth 5Y24.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-289%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-261.95%
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 5 / 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 5 / 10 and the dividend payout ratio is 81.4%.